The Purpose of Business Activity

A comprehensive set of flashcards covering essential business vocabulary and concepts discussed in the lecture.

Goods

Tangible items that can be physically touched, such as an iPhone.

Consumer Goods

Goods used directly by consumers to satisfy needs and wants.

Producer Goods

Goods used by businesses to make other goods or to help them run their business.

Durable Goods

Goods which last a long time.

Non-durable Goods

Goods which do not last a long time, consumed instantly or over a short period.

Services

Intangible, non-physical purchases, such as a haircut.

Personal Services

Services provided to individual customers, such as retailing or hairdressing.

Commercial Services

Services provided to businesses, such as accountancy or IT services.

Needs

Things that individuals need to live, for example, food.

Wants

Things that individuals desire; they are unlimited, for example, a mobile phone.

Profit

The difference between total revenue and total costs.

Unique Selling Points

Features that offer something to customers that competitors do not.

Quality Products

Products that meet a certain standard and satisfy customer expectations.

Convenience

Making it easy for customers to buy products and services.

Dynamic Environment

The constantly changing business environment requiring quick business responses.

Innovation

The creation of new ideas or better ways of doing things to improve business operations.

Private Sector

Businesses that are owned and run by private individuals or groups aiming to make a profit.

Public Sector

Business activity owned and run by the government for the benefit of all citizens.