364 Lesson 2 recap

An activity conducted by companies to provide goods or services for sale.

• Commercial business

• Non profit organisation

• Business representative

• Regulatory organisation

Answer explanation

Commercial business is:

An activity conducted by companies to provide goods or services for sale. 

Includes the activity done outside of manufacturing or producing the products. 

Can also include the use of land or business for business activity, such as retail stores.

A business which acts or makes decisions on behalf of another person or a group of people. They will typically have common interests.

• Commercial business

• Non profit organisation

• Business representative

• Regulatory organisation

Answer explanation

A business which acts or makes decisions on behalf of another person or a group of people. They will typically have common interests.

Examples include the British Grooms Association.

Can be established by the government or public. Their role is to establish standards, ensure compliance with them, and improve standards where necessary.

• Commercial business

• Non profit organisation

• Business representative

• Regulatory organisation

Answer explanation

A regulatory organisation can be established by the government or public and it is responsible for legally regulating an business. Their role is to establish standards, ensure compliance with them, and improve standards where necessary.

Some have memberships and members have to adhere to their set standards. This provides a level of quality assurance.

For example, RCVS (Royal College of Veterinary Surgeons).

Activities are not for the financial benefit of any individual.

• Commercial business

• Non profit organisation

• Business representative

• Regulatory organisation

Answer explanation

Non-profit organisations are not for profit. This means that their activities are not for the financial benefit of any individual.

For example, most zoological institutions and aquariums are non-profit organisations. They support the community, education, species conservation and much more.

A series of markets where goods and services are exchanged, facilitated by capital. These markets are combined.

• Economy

• Business

• GDP

Answer explanation

“Economies work by distributing scarce resources among individuals and entities. A series of markets where goods and services are exchanged, facilitated by capital, combine to make an economy.” (Future Learn, n.d.).

Tangible items sold to customers

• Goods

• Services

Tasks performed for the benefit of the recipients

• Goods

• Services

Market value of all of the goods and services that are produced by a business during an accounting year.

• Value of output

• GDP

• Market value

• Goods/services

Answer explanation

The goods and services of a business make up its output.

Value of output is the market value of all of the goods and services that are produced by a business during an accounting year.

The term used to describe how much an asset or a company is worth on the financial market, according to market participants.

• Value of output

• Market value

• GDP

• Value

Measure of the size and health of a country’s economy over a period of time. It is also used to compare the size of different economies at a different point in time.

• Gross Domestic Product (GDP)

• Gross International Product (GIP)

• Gross Domestic Process (GDP)

• Great Domestic Product (GDP)

Answer explanation

“Gross domestic product or GDP is a measure of the size and health of a country’s economy over a period of time (usually one quarter or one year). It is also used to compare the size of different economies at a different point in time.” (Bank of England, 2019).