What is a Business?
- Created by: geedarcy
- Created on: 20-03-18 12:54
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- What is a Business?
- A business is any organisation that makes goods or provides services
- Businesses exist to provide goods or services.
- Goods are physical products such as burgers or cars.
- Services are non-physical items such as hairdressing.
- Customer needs are the wants and desires of buyers.
- Businesses exist to provide goods or services.
- Nearly half a million businesses start up each year.
- A business start- up is a new firm operating in a market for the first time.
- The vast majority of businesses are very small and operate in the service sector.
- Businesses buy the products they need from suppliers
- Suppliers are firms selling products to other businesses
- Then then sell to customers
- The individual who uses the product is called a consumer. Sometimes the customer and consumer are different people - for example, parents buy a pen for their child to use at school.
- Businesses sell to customers in markets.
- A market is any place where buyers and sellers meet to trade products
- In order to create goods and services, a business buys or hires inputs such as raw materials, equipment, buildings and staff
- These inputs are transformed into outputs called products.
- These products are the goods and services used by consumers.
- Production is the business activity of using resources to make goods and services.
- A business adds value when the selling price of an item produced is higher than the cost of all the resources used to make it.
- Primary production
- Involves acquiring raw materials
- Secondary production
- This is the manufacturing and assembly process
- Tertiary production
- This refers to the commercial services that support the production and distribution process
- A business is any organisation that makes goods or provides services
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