Business Studies key terms 1

Word	Definition
Business	An organization which produces Goods or services.
Capital Goods	Physical goods used to produce other producer and consumer goods and services.
Consumer	The person who ultimately uses (or consumes) a product.
Consumer Goods	Goods and services which are sold to people (consumers) rather than other businesses.
Customer	Any person or organization which buys or is supplied with a product by a business.
Factors Of Production	Land (natural resources, labor and capital used in the production process)
Goods	Physical products, like a car or a Cabbage.
Needs	The basic products that people need in order to survive: food, drink, Shelter, warmth and clothing.
Producer Goods	Goods that are sold by one business to another and which are then used to Produce other goods and services.
Products	Goods made or services provided by Businesses.
Raw Materials	Natural resources, like copper or Coffee beans, used to make products.
Services	Non – Physical products, like a Haircut or a train journey.
Wants	The desire to consume goods and Services. Wants are unlimited because there is no limit to the amount of goods or services people Would like to consume.