Business Studies

Business- a legally recognised organisation designed to provide good or services to consumers

Needs- the things people need to survive e.g. water

Wants- are people’s desire to consume goods and services. Peoples wants are unlimited

Adding value- occurs when a business increases the value of a product or service increasing the price consumers are willing to pay

Demand is the amount of a particular good or service that a consumer or group of consumers will want to purchase at a given price

The opportunity cost is the next best alternative that would have been chosen

A a market place is anywhere buyers and sellers come together e.g. eBay

A market consists of all the customers who purchase a particular type of good or service e.g. the market of MP3 players

Market share is the proportion of a market that a particular producer has e.g. apple iPod took 82 percent of the us retail market share for mp3’s

Specialisation is where a business concentrates on one particular activity

Planned economy- the government makes decisions

Market economy- consumers and businesses make the decisions

Mixed economy- the private sector provides some goods and services while the government provides others

A stake holder is and individual or group of people who have an interest in a business e.g. customers, workers

A business objective is what the business is trying to achieve

A mission statement is a brief summary of the main objectives of a business

Satisfying is where a business makes enough profit to survive but does not profit maximise

The private sector is where part of a business is owned by private individuals

Public sector is where most of the business is owned by local or central government

A public corporation is a limited company owned by the government

• vertical integration-growth between the sectors

Footloose businesses can locate anywhere