Role of business

Question	Answer
Define Business	A business can be defined as the organised effort of individuals to produce and seek, for a profit, the products (goods and services to satisfy individuals' needs and wants)
Goods	Are items that can be seen or touched.
Services	Are things done for you by others.
Profit	This is the return, or reward that the business owner receive for producing products that consumers need and want. GROSS PROFIT = REVENUE - COST OF GOODS SOLD NET PROFIT = GROSS PROFIT - EXPENSES
Employment	Businesses provide about 80% of all private sector jobs. The SME sector is a major source of employment.
Income	An employees income is the amount of money received for providing their labour. WAGE: hourly rate, paid on weekly basis SALARY: fixed amount per year, paid fortnightly/monthly.
Choice	Customers can choose between competing products which drives the modern economy.
innovation	Is a new idea that relates to a product, a service, or a way of doing something.
Entrepreneurship	Is concerned with the risks associated with marketing new ideas for products.
Wealth creation	Occurs when people invest in business to grow the value of their wealth over time.
Quality of life	Desire for a better quality of life by making products and providing services to suit our lifestyle e.g. environmentally friendly products such as technology - Apple

Resource summary

	Created by Chanel Cutelli over 9 years ago