Purpose of Business Activity
Business: Cambridge International GCSE (2027 Exams), topic 1.1.1
Purpose of Business Activity
Businesses supply goods, services or a combination of both.
Goods
- Goods are physical products such as a PlayStation console or Coca Cola soft drinks.
Services
- Services are non-physical actions performed by a business to help a customer.
- Snapchat is an example of this; they provide a digital platform for people to send photos to one another. They don’t actually provide a physical good.
Goods and services
- Some businesses provide both goods and services.
- Restaurants, for example, provide goods in the form of physical food but also services in the form of waiters and waitresses and an atmosphere where customers can enjoy their meal.
B2B and B2C
- It is also important to note that some businesses sell products or services to customers (B2C – business to customer) while others sell to other businesses (B2B – business to business).
- DHL sells logistics (delivery and supply chain) support to other businesses like Jaguar Land Rover.
Test yourself on Purpose of Business Activity
What can businesses sell to customers?
Snap Inc (Snapchat) is a business that provides what?