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Chapter 1 - What is a Business Questions & answers.
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Chapter 1 - What is a Business Questions & answers.
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Chapter 1 - What is a Business?Questions & answers.
a decision making organization involved in the process of using inputs to produce goods or services.
inputs: raw materials, components, machinery equipment and labor -> process: turning inputs into the
provision of services or manufacturing of goods -> outputs: the output or provision of final goods and
services ANS - What is a business?
product ANS - refers to both goods and services
Physical products such as cars, computers, books and food ANS - What are goods?
Intangible products such as a haircut, a bus ride or going to the movie theater ANS - What are services?
supplying a product or service consumers want ANS - Success of business activity depends on
____________________________________
needs ANS - _____ or basic necessities are limited. Food, warmth, shelter, security are some examples.
wants ANS - _______ are endless. They aim for a better quality of life
markets ANS - Goods and Services are sold in ____________
buyers (customers), sellers (businesses), exchange goods and services ANS - Markets exist where
________ and _________ meet in order to __________________________
Flea markets, telephone, malls, e-commerce ANS - What are some examples of markets?
People or organization that buy a product ANS - What is a customer?
, Are the actual ones using the product ANS - What is a consumer?
Consumer goods, capital or producer goods, services, waste ANS - What does business activity
produce?
Consumer goods ANS - Goods that are sold directly to the general public
stoves, cars, televisions, furniture (used for a long time) ANS - What are some examples of durable
consumer goods?
food, newspapers, candy (used soon after purchased) ANS - What are some examples of non-durable
goods
capital or producer goods ANS - goods purchased by business to produce other products such as tools
or equipment
banking, insurance, fast food, beauty salons ANS - What are some examples of services that business
activity produces?
Waste, nuclear waste ANS - Some ______ such as ________ ________ is harmful and some can be
reused.
the difference between the value of inputs (cost of production) and the value of outputs (goods and
services that are sold to customers) ANS - What is value added?
sell products, production costs, earn a profit ANS - Value added allows business to _______________
for more than ___________ to _________.
expertise and experiences of plumber, dance instructor, speed or quality of service, quality of product,
etc ANS - Why are customers willing to pay excess costs of production?
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