Podcast
Questions and Answers
What is the primary sector of business?
What is the primary sector of business?
- Provides services
- Sells finished goods to customers
- Produces or extracts raw materials (correct)
- Makes or manufactures goods
An entrepreneur is someone who works for a business.
An entrepreneur is someone who works for a business.
False (B)
What is an opportunity cost?
What is an opportunity cost?
Something that is given up in order to do something else
The four main business functions are marketing, operations, human resources, and __________________.
The four main business functions are marketing, operations, human resources, and __________________.
What type of sector would a hairdresser be in?
What type of sector would a hairdresser be in?
Capital refers to the entrepreneur who takes a risk and creates the business.
Capital refers to the entrepreneur who takes a risk and creates the business.
Match the following business sectors with their descriptions:
Match the following business sectors with their descriptions:
What is Enterprise?
What is Enterprise?
What is the main reason an entrepreneur may start a business to fill a gap in the market?
What is the main reason an entrepreneur may start a business to fill a gap in the market?
Services are tangible items that can be used and stored.
Services are tangible items that can be used and stored.
What are the four factors of production that a business needs to produce their products or provide their service?
What are the four factors of production that a business needs to produce their products or provide their service?
Goods are _______________________ items that can be used and stored.
Goods are _______________________ items that can be used and stored.
Match the following terms with their definitions:
Match the following terms with their definitions:
What is an example of a business that provides a service?
What is an example of a business that provides a service?
Labour includes the physical land where the business is located.
Labour includes the physical land where the business is located.
What is an example of a renewable resource that a business might need?
What is an example of a renewable resource that a business might need?
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Study Notes
Reasons for Starting a Business
- Entrepreneurs start businesses to produce goods, provide services, distribute products, benefit society, fill a gap in the market, or fulfill a business opportunity
- Examples of goods-producing businesses: Coca-Cola and Cadbury
- Examples of service-providing businesses: Premier Inn and Talk Talk
Goods and Services
- Goods are tangible items that can be used and stored, such as computers, food, and clothes
- Services are intangible actions that cannot be stored, such as hairdressing, train journeys, and internet access
Wants and Needs
- Wants are things people would like to have but can survive without, such as event tickets, designer accessories, and luxury cars
- Needs are life-essential things required to survive, such as clothing, food, shelter, warmth, and water
Factors of Production
- Four factors of production needed for businesses to produce goods or provide services: land, labour, capital, and enterprise
- Land: physical location and natural resources (non-renewable and renewable)
- Labour: staff needed by the business with required skills and qualifications
- Capital: machinery and equipment needed for production
- Enterprise: entrepreneur who takes a risk and creates the business using the other three factors
Opportunity Cost
- Opportunity cost: something given up in order to do something else
- Examples: choosing between two office locations or allocating £5,000 to either a new advertising campaign or staff training
Business Sectors
- Businesses can be split into three sectors: primary, secondary, and tertiary
- Primary Sector: produces or extracts raw materials (fishing, farming, mining)
- Secondary Sector: makes or manufactures goods from raw materials (factories, food manufacturers, car manufacturers)
- Tertiary Sector: provides services (estate agents, hairdressers, restaurants)
Business Functions
- Four main business functions that work together for a successful business: marketing, operations, human resources, and finance
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