Introduction to Business, Exams of Business Economics

Download Introduction to Business and more Exams Business Economics in PDF only on Docsity! BUSINESS EXAM LATEST UPDATED 2024 WITH VERIFIED ANSWERS. 1. What is a business? - Correct answer A business is any organisation that makes goods or provides services. Businesses exist to provide goods or services. 2. Goods - Correct answer Goods are physical products such as burgers or cars. 3. Services - Correct answer Services are non-physical items such as hairdressing. 4. Customer needs - Correct answer Customer needs are the wants and desires of buyers. 5. Business start-up - Correct answer Nearly half a million businesses start up each year. A business start- up is a new firm operating in a market for the first time. 6. Suppliers, customers and markets - Correct answer Businesses buy the products they need from suppliers - firms selling products to other businesses - and sell to customers. The individual who uses the product is called a consumer. Sometimes the customer and consumer are different people - for example, parents buy a pen for their child to use at school. 7. Markets - Correct answer Businesses sell to customers in markets. A market is any place where buyers and sellers meet to trade products - this can be a high street shop or a website. 8. Competition - Correct answer Businesses are likely to be in competition with other firms offering similar products. 9. Inputs and outputs - Correct answer In order to create goods and services, a business buys or hires inputs such as raw materials, equipment, buildings and staff. These inputs are transformed into outputs called products. These products are the goods and services used by consumers. Production is the business activity of using resources to make goods and services. 10.Adding value - Correct answer A business adds value when the selling price of an item produced is higher than the cost of all the resources used to make it. Think of a pair of designer sunglasses which sell for £100. If the cost of the materials, employees, marketing and all other inputs used in making one set of sunglasses is just £20, then £80 worth of value has been added by the firm during production. 11.Primary, secondary and tertiary sectors - Correct answer There are three main types of industry in which firms operate. These sectors form a chain of production which provides customers with finished goods or services.