The purpose and nature of business activity

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What are the basic essential human needs?
Food, drink, clothing, and shelter.
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Why are businesses usually set up?
To satisfy the wants and needs of customers.
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What is the act of preparing a good or service for sale called?
Production.
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What do businesses provide with the aim of satisfying our wants and needs?
Physical goods (manufacturing) or services.
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What is adding value?
Turning inputs into more valuable outputs.
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What is one aim of a business to do with adding value?
To provide products and services to customers that are more attractive than those of their competitors.
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How can you turn a raw material such as oranges into a more valuable output?
Making orange juice!
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What does scarcity mean in terms of a business?
Resources are scarce so businesses need to make smart choices to get the most out of their resources.
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Other cards in this set

Card 2

Front

Why are businesses usually set up?

Back

To satisfy the wants and needs of customers.

Card 3

Front

What is the act of preparing a good or service for sale called?

Back

Preview of the front of card 3

Card 4

Front

What do businesses provide with the aim of satisfying our wants and needs?

Back

Preview of the front of card 4

Card 5

Front

What is adding value?

Back

Preview of the front of card 5
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