A need is something people must have to survive. Food, water, shelter and clothing are examples.

A want is something people would like to have but can live without. A holiday or a games console is an example.

Why do businesses aim to meet both needs and wants?

Customers will pay for both essentials and things they desire. Meeting wants can be very profitable because wants are almost unlimited.

What are the factors of production?

The factors of production are the resources needed to make goods and services. The four factors are land, labour, capital and enterprise.

What is land as a factor of production?

Land is all natural resources used in production. Examples include fields, forests, water and minerals.

AQA GCSE Business 8132

Business in the Real World

Topic overview What a business is and why people start one Goods, services, needs, wants and factors of production Business sectors, entrepreneurs and a changing business environment Sole traders, partnerships, limited companies and not-for-profit organisations Business aims and objectives Why business objectives differ and change Stakeholders and their influence on businesses Factors affecting business location Business planning and basic financial terms Expanding a business and economies of scale

Influences on Business

Topic overview E-commerce and digital communication Ethics, the environment and sustainability Interest rates, employment and consumer spending Globalisation and exchange rates Employment, health and safety and consumer law Competition, risk and uncertainty

Business Operations

Topic overview Job, flow and lean production Managing stock: just in time and just in case Suppliers, procurement, logistics and supply chains Quality control, quality assurance and TQM Customer service and the sales process

Human Resources

Topic overview Organisational structures, span of control and delegation Recruitment, selection and contracts of employment Financial and non-financial methods of motivation Induction, on-the-job and off-the-job training

Marketing

Topic overview Identifying and satisfying customer needs Market segmentation Purpose of market research and primary and secondary research Market research methods and interpreting findings Pricing methods and factors affecting price New products, USP, brand image and the Boston Matrix Product life cycle and extension strategies Promotional methods and the promotional mix Channels of distribution, e-commerce and m-commerce The integrated marketing mix

Finance

Topic overview Sources of finance Cash flow and cash flow forecasts Financial calculations and average rate of return Break-even charts and margin of safety Income statements and statements of financial position Profit margins and judging financial performance

Business in the Real World

Goods, services, needs, wants and factors of production

3 things to know
Both papers

Overview

Goods against services, needs against wants, land, labour, capital and enterprise as the factors of production, and opportunity cost in business decisions and in giving up a job to start up.

What you need to know

Answer each one before you reveal it.

Your recallNot started

Key term

What is the difference between goods and services?

Key term

What is a need?

Key term

What is a want?

Questions from this subtopic

Each one with the model answer underneath.

1
What is the difference between goods and services?
Model answer
Goods are physical products that can be touched, such as a phone. Services are actions done for customers, such as a haircut.
2
What is a need?
Model answer
A need is something people must have to survive. Food, water, shelter and clothing are examples.
3
What is a want?
Model answer
A want is something people would like to have but can live without. A holiday or a games console is an example.
4
Why do businesses aim to meet both needs and wants?
Model answer
Customers will pay for both essentials and things they desire. Meeting wants can be very profitable because wants are almost unlimited.
5
What are the factors of production?
Model answer
The factors of production are the resources needed to make goods and services. The four factors are land, labour, capital and enterprise.
6
What is land as a factor of production?
Model answer
Land is all natural resources used in production. Examples include fields, forests, water and minerals.

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Business in the Real World

Influences on Business

Business Operations

Human Resources

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The pays a fee and a share of revenue.

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AThe business pays more interest on the money it owes.

BHigher interest charges raise costs and reduce profit.

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Wage means pay based on the number of hours worked.

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