Flashcards: Unit 1 Business & its Environment

Front

What are consumer goods?

Back

Physical and tangible goods sold to the general public, including durable goods like cars and non-durable goods like food.

Front

What are consumer services?

Back

Non-tangible products sold to the general public, such as hotel accommodation and insurance services.

Front

Who is a consumer?

Back

An individual who buys goods and services for their own use.

Front

Who is a customer?

Back

An individual, group, or organization that purchases goods and services from a business.

Front

What is a factor of production?

Back

Resources required by a business to commence production of goods and services.

Front

What are capital goods?

Back

Physical goods used by the industry to aid in producing other goods and services.

Front

What does 'adding value' mean?

Back

Increasing the difference between the cost of purchasing materials and the price the finished goods are sold for.

Front

What is opportunity cost?

Back

The benefit of the next most desired option that is given up.

Front

Who is an entrepreneur?

Back

Someone who takes the financial risk of starting and managing a new venture.

Front

What is enterprise?

Back

The action of showing initiative to take risks to start up a business.