Providing goods and services

Good

A tangible object which can be purchased

Tangible

Can be seen or touched

Consumer goods

Directly used by customers to satisfy their needs and wants. Normally bought in shops, online etc.

Producer good

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

Tend to be bought from a specialist supplier.

Durable goods

Tend to have a long life - used until they break or are replaced. No fixed time but expected to last a minimum of three years.

Non - durable goods

Consumed for a shorter single time period or only once - often used immediately. Expected lifespan below three years

Service

A non - tangible item that can be purchased, i.e. activities that a business does for customers

Personal/direct services

Aimed at consumers. Used by consumers on a regular basis

Commercial services

Aimed at businesses. Used by businesses that do not have the workers or expertise within the business to perform the activity e.g. accountancy, marketing, market research

Public sector

• Organisations that are owned and ran by the government

• Run for the benefit of everyone

• Financed through tax revenue

Private sector

• Businesses owned by private individuals

• Run for the benefit of the people who own them

• Usually exist to make a profit

Privatisation

The transfer of assets from the public sector to the private sector

Nationalisation

The transfer of assets from the private sector to the public sector

Raw materials

Materials needed to produce a product includes natural products and manufactured products that are needed to make finished products

If a business is unable to grow, collect or manufacture these resources themselves they will need to pay another business to supply them

Machinery and equipment

Used in the production and provision of a good or service. Big expense for a business so must be used effectively in order to help the business be profitable

Workers

Also referred to as human resources or labour. Expensive as workers will require payment on a regular basis. May be skilled.

Site

Where the business operates from. Usually involves a large initial payment to purchase the site.

Primary sector

Extraction and use of natural resources and materials from tje land and sea.

Secondary sector

Raw materials are turned into parts and components and finished products

Tertiary sector

Where the business will sell the product to their consumer. Where services are provided.