Producing good and services

• What is the primary purpose of businesses?

  To meet customer needs
• How do businesses meet customer needs?

  By organizing resources to provide goods and services
• What is the effect of adding value to goods and services?

  It helps a business to sell more
• What are the two main types of business offerings?

  • Goods: Tangible products that can be touched
  • Services: Intangible actions that cannot be stored
• What is a good?

  A product that can be touched
• What is a service?

  An intangible action provided by a business
• What is the purpose of producing goods and services?

  To make a profit
• What is the definition of profit?

  The amount of money made after costs
• What resources do businesses need to produce goods or provide services?

  Land, labour, and capital
• What does 'capital' refer to in a business context?

  Money and equipment invested into a business
• What is an entrepreneur?

  A calculated risk-taker who sets up a business
• What does risk mean in a business context?

  An estimate of the probability of an unwanted outcome
• What are the key components needed to start a business?

  • Land: Physical space for operations
  • Labour: Human effort and skills
  • Capital: Money and equipment
  • Enterprise: Willingness to take risks and make decisions