Lesson 1 worksheet.docx

**Introduction to Business Fundamentals Worksheet** Business is a fundamental part of our economy and society. It involves the exchange of goods and services to satisfy customer needs and wants. Businesses aim to generate profit while providing value to consumers. Understanding key concepts like ma...

**Introduction to Business Fundamentals Worksheet** Business is a fundamental part of our economy and society. It involves the exchange of goods and services to satisfy customer needs and wants. Businesses aim to generate profit while providing value to consumers. Understanding key concepts like markets, products, and economic factors is crucial for grasping how businesses operate and contribute to our standard of living. **Fill in the Blank**: Fill in the blank with the correct words. 1. A \_\_\_\_\_\_\_\_\_\_\_\_\_\_ is an organization that provides goods or services to customers with the goal of making a profit. 2. A tangible item that can be bought or sold is called a \_\_\_\_\_\_\_\_\_\_\_\_\_\_, while an intangible offering that provides value is known as a \_\_\_\_\_\_\_\_\_\_\_\_\_\_. 3. The person who purchases and uses a product or service is called a \_\_\_\_\_\_\_\_\_\_\_\_\_\_. 4. The difference between total revenue and total costs, representing the financial gain of a business, is called \_\_\_\_\_\_\_\_\_\_\_\_\_\_. 5. The \_\_\_\_\_\_\_\_\_\_\_\_\_\_ is where buyers and sellers come together to exchange goods and services. **Word bank**: profit, business, consumer, market, good, service, customer **Multiple Choice Questions**: Choose the correct answer from the choices for each question. 1. Which of the following best describes a \"want\" in economic terms?\ a) A basic requirement for survival\ b) Something desired but not necessary for survival\ c) A product that has utility\ d) A service provided by a business 2. What term describes the satisfaction or benefit a consumer derives from using a product or service?\ a) Profit\ b) Utility\ c) Standard of living\ d) Wages 3. The monetary compensation paid to employees for their work is called:\ a) Profit\ b) Utility\ c) Standard of living\ d) Wages 4. Which of the following is NOT typically considered a basic human need?\ a) Food\ b) Shelter\ c) Smartphone\ d) Water 5. The overall quality of life and level of comfort experienced by individuals or groups is referred to as:\ a) Utility\ b) Profit\ c) Standard of living\ d) Market **Open Ended Questions**: Answer the following questions in complete sentences: 1. Explain the difference between a need and a want, and provide an example of each. 2. Describe how businesses contribute to improving the standard of living in a community. 3. Explain the relationship between customers, businesses, and the market. How do they interact with each other? **Answer Key**: Fill in the Blank: 1. business 2. good, service 3. consumer 4. profit 5. market Multiple Choice Questions: 1. b 2. b 3. d 4. c 5. c Open Ended Questions (Example responses): 1. A need is something essential for survival, such as food, water, or shelter. A want is something desired but not necessary for survival, like a new smartphone or designer clothes. For example, water is a need, while a flavored sports drink is a want. 2. Businesses contribute to improving the standard of living by providing employment opportunities, which allow people to earn wages. They also create products and services that enhance quality of life, stimulate economic growth, and often contribute to community development through taxes and charitable activities. 3. Customers, businesses, and the market are interconnected. Customers have needs and wants, which businesses aim to satisfy by offering products or services. The market is where this exchange takes place, facilitating interactions between customers and businesses. Businesses compete in the market to attract customers, while customers use the market to find the best products or services to meet their needs and wants.