S1 Understanding Business Unit

Why do businesses exist ?

• To provide a good or service to customers / make a profit

• To develop an idea/fill a gap in the market

• To fulfil customer’s needs and wants

• All of the previous answers

What are needs?

• These are things that people like to have

• These are things that people must have in order to survive

Which of the following are examples of needs?

• Food & Water

  Clothing

  Mobile Phone

• Food & Water

  Clothing

  Shelter

• Food & Water

  Car

  Shelter

• Food & Water

  Shelter

  Television

In the box below, give two examples of a want.

Goods are products we can see touch and pick up. True or False ?

• True

• False

What is a service?

• Products we can see and pick up

• Products we can’t see or pick up and are provided for us by trained people

Durable goods cannot be used more than once. True or False ?

• True

• False

What are ‘The Factors of Production”?

• Land

  People

  Enterprise

  Capital

• Land

  Labour

  Enterprise

  Buildings

• Land

  Labour

  Enterprise

  Capital

Land is …………

• The natural resources (raw materials) businesses use

• The ground that businesses are built on

• The buildings, machinery and equipment owned by a business

Enterprise is…..

• The workers and their knowledge, effort and skills

• The money the entrepreneur has

• The knowledge, skills and ideas of the entrepreneur