National 5 Business Management
Business - ✔ CORRECT ANSWER ✓✓An organisation that provides goods and services
Needs - ✔ CORRECT ANSWER ✓✓Basic requirements for survival -- the goods and services a
person must have (food, water, etc)
Wants - ✔ CORRECT ANSWER ✓✓Goods that are purchased to add comfort or pleasure to life
Durable Good - ✔ CORRECT ANSWER ✓✓Items with lasting value, the purchase of which is
considered a form of savings
Non-Durable Good - ✔ CORRECT ANSWER ✓✓goods that last a short period of time, such as
food, light bulbs, and sneakers
Service - ✔ CORRECT ANSWER ✓✓intangible things of value (haircuts, maid service, laundry,
education, etc.)
Land - ✔ CORRECT ANSWER ✓✓Any natural resource provided by nature and used in the
production process
Labour - ✔ CORRECT ANSWER ✓✓productive work (especially physical work done for wages)
Capital - ✔ CORRECT ANSWER ✓✓Man made resources used to make a product
Enterprise - ✔ CORRECT ANSWER ✓✓Combining the Factors of Production
, Factors of Production - ✔ CORRECT ANSWER ✓✓Land, Labour, Capital and Enterprise
Added Value - ✔ CORRECT ANSWER ✓✓The increase in worth of a product or service as a result
of a particular activity.
Primary Sector - ✔ CORRECT ANSWER ✓✓The part of the economy that produces raw
materials; examples include agriculture, fishing, mining, and forestry.
Secondary Sector - ✔ CORRECT ANSWER ✓✓The portion of the economy concerned with
manufacturing useful products through processing, transforming, and assembling raw materials.
Tertiary Sector - ✔ CORRECT ANSWER ✓✓the part of the economy that involves services rather
than goods
Sectors of Industry - ✔ CORRECT ANSWER ✓✓Primary, Secondary & Tertiary
Sole Trader - ✔ CORRECT ANSWER ✓✓a business owned by a single person
Partnership - ✔ CORRECT ANSWER ✓✓A business in which two or more persons combine their
assets and skills
Private Limited Company - ✔ CORRECT ANSWER ✓✓A business organization owned by
shareholders with limited liability but whose shares cannot be bought or sold to the general
public.
Public Limited Company - ✔ CORRECT ANSWER ✓✓a business with limited liability whose
shares are available to the general public to buy on the stock market
Business - ✔ CORRECT ANSWER ✓✓An organisation that provides goods and services
Needs - ✔ CORRECT ANSWER ✓✓Basic requirements for survival -- the goods and services a
person must have (food, water, etc)
Wants - ✔ CORRECT ANSWER ✓✓Goods that are purchased to add comfort or pleasure to life
Durable Good - ✔ CORRECT ANSWER ✓✓Items with lasting value, the purchase of which is
considered a form of savings
Non-Durable Good - ✔ CORRECT ANSWER ✓✓goods that last a short period of time, such as
food, light bulbs, and sneakers
Service - ✔ CORRECT ANSWER ✓✓intangible things of value (haircuts, maid service, laundry,
education, etc.)
Land - ✔ CORRECT ANSWER ✓✓Any natural resource provided by nature and used in the
production process
Labour - ✔ CORRECT ANSWER ✓✓productive work (especially physical work done for wages)
Capital - ✔ CORRECT ANSWER ✓✓Man made resources used to make a product
Enterprise - ✔ CORRECT ANSWER ✓✓Combining the Factors of Production
, Factors of Production - ✔ CORRECT ANSWER ✓✓Land, Labour, Capital and Enterprise
Added Value - ✔ CORRECT ANSWER ✓✓The increase in worth of a product or service as a result
of a particular activity.
Primary Sector - ✔ CORRECT ANSWER ✓✓The part of the economy that produces raw
materials; examples include agriculture, fishing, mining, and forestry.
Secondary Sector - ✔ CORRECT ANSWER ✓✓The portion of the economy concerned with
manufacturing useful products through processing, transforming, and assembling raw materials.
Tertiary Sector - ✔ CORRECT ANSWER ✓✓the part of the economy that involves services rather
than goods
Sectors of Industry - ✔ CORRECT ANSWER ✓✓Primary, Secondary & Tertiary
Sole Trader - ✔ CORRECT ANSWER ✓✓a business owned by a single person
Partnership - ✔ CORRECT ANSWER ✓✓A business in which two or more persons combine their
assets and skills
Private Limited Company - ✔ CORRECT ANSWER ✓✓A business organization owned by
shareholders with limited liability but whose shares cannot be bought or sold to the general
public.
Public Limited Company - ✔ CORRECT ANSWER ✓✓a business with limited liability whose
shares are available to the general public to buy on the stock market
