1.1 - What is a business? (Flashcards)

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Adding value

Back

The practice of producing a good or service that is worth more than the cost of the resources used in the production process.

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Production

Back

The process of creating goods and/or services, adding value in the process.

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Goods

Back

Physical products produced and sold to customers, such as laptops, books, contact lenses, perfumes, and children's toys.

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Customers

Back

The people or organizations that buy the product.

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Consumers

Back

The people or organizations that use the product.

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Services

Back

Intangible products sold to customers, such as the services provided by airlines, restaurants, cinemas, banks, health and beauty spas, schools, and hospitals.

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Primary sector

Back

Businesses involved in the cultivation or extraction of natural resources, such as farming, mining, quarrying, fishing, oil exploration, and forestry.

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Secondary sector

Back

Businesses concerned with the construction and manufacturing of products.

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Tertiary sector

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Businesses involved with the provision of services to customers.

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Quaternary sector

Back

A sub-category of the tertiary sector, where businesses are involved in intellectual and knowledge-based activities that generate and share information, such as research organizations.