The Purpose of Business Flashcards

All 5 cards in this deck

What is a business?

An organisation that produces goods or provides services to meet the needs and wants of customers.

Name three reasons for starting a business that relate to what it provides for customers.

To produce goods/supply services; to distribute products; to fulfil a business opportunity (gap in the market).

What is meant by starting a business to 'distribute products'?

Setting up a business to move products from producers to the customers who want them, e.g. a delivery or wholesale business.

What is meant by starting a business to 'fulfil a business opportunity'?

Setting up a business to meet a gap in the market — customer demand that no other business is currently meeting.

True or false? Every business is set up in order to make money for its owner.

False. Some businesses are set up to provide a good or service to benefit others, e.g. a charity or social enterprise.