Role of business

• People can’t survive without having basic needs like food , water , clothing and shelter and businesses provide them
• Wants are things we would like to have but don’t need to survive . These are luxuries such as phones or holidays
• A good is a thing you can physically hold or touch
• Tangible means something can be touched or held
• A service is something done like a concert or restaurant
• Durable can describe a product which is long lasting and can be kept for a lengthy time period like cars or washing machines
• Non-durable goods are bought and used up instantly or in a short time frame like a takeaway or a holiday
• The four factors of production are land , labour , enterprise and capital
• Land is the natural resources available for production
• Enterprise is the entrepreneurs organising all factors of production and taking risks
• Capital is the goods used in the supply of other products eg technology
• • Labour is the people employed by a business to make a product
• What is an entrepreneur?

  A person who sets up a business or businesses, taking on financial risks in the hope of profit.
• At each stage of production the product adds value , builds its worth and wealth is created
• The three sectors of industry are primary , secondary and tertiary
• What is the primary sector of industry concerned with?

  The extraction of raw materials or natural resources from the land
• How would a business that grows goods or extracts materials from the land be classified?

  As a primary sector business
• What are some examples of primary sector businesses?

  • Farming
  • Fishing
  • Mining
  • Oil Production
• What is the secondary sector of industry concerned with?

  Manufacturing
• What does the secondary sector do with raw materials from the primary sector?

  It converts them into new products
• What are some examples of secondary sector businesses?

  • Car manufacturers
  • Food production
  • Building companies
• What is the tertiary sector of industry concerned with?

  Providing a service
• What are services in the context of the tertiary sector?

  Activities done by people or businesses for consumers
• What are some examples of tertiary sector businesses?

  • Hairdressers
  • Banks
  • Supermarkets
  • Cinemas
• The three sectors of economy are private , public and third / voluntary sector
• What is the private sector made up of?

  Businesses large and small that belong to or are owned by an individual
• What are the main concerns of businesses in the private sector?

  • Increasing profit
  • Increasing market share
  • Adding value to their goods and services
  • Increasing wealth
• What is the main aim of businesses in the private sector?

  To survive and make a profit
• Can you give examples of businesses in the private sector?

  • Local Newsagents
  • Lawyer Firms
  • Large Supermarkets (e.g., TESCO)
• Who owns and controls public sector organizations?

  The Government
• What is the primary aim of public sector organizations?

  To provide a service to the public
• How are public sector organizations funded?

  By taxes
• What is the budgetary aim of public sector organizations?

  To work within a budget
• In which areas do public sector organizations function?

  • Health
  • Education
  • Housing
  • Social work
• What are the two main divisions of the public sector?

  1. National Government (e.g., UK government, Scottish government)
  2. Local Government (e.g., councils like Argyll & Bute or Stirling, towns like Oban)
• What is the focus of the third/voluntary sector?

  Raising money to help their cause
• Who owns and runs organizations in the third/voluntary sector?

  • Owned and run by trustees
• What are the aims of the third/voluntary sector?

  • Raise money for good causes
  • Increase awareness for good causes
• How does the third/voluntary sector raise money?

  • Sponsorship
  • Selling goods
  • Volunteers for labor
  • Some paid employees