1. Goods and Services
23/08/10

2. What do businesses do? Businesses produce goods and provide services
Examples of organisations producing goods – Nissan cars, Nintendo computer games consoles, Windows computer programs
Examples of organisations providing services – Bannatynes leisure facilities, Excite leisure facilities, Livingston Taxis, Royal Bank of Scotland.

3. What is a good?
A good is tangible (you can see it and touch it) eg a table, a car, a washing machine.
We can split goods into different groups –
Durable goods – these are goods which last for a good period of time eg cars, computers, telephones etc
Non-durable goods – which are used once or twice and can’t be used again eg food, washing powder, disposable cameras, disposable razors etc

4. cont
Consumer goods – these are goods which organisations make so that you and I can use them eg cars, computers, central heating systems etc
Capital goods – these are goods which other organisations buy to help them manufacture other goods and provide services eg hammers, nails, production lines, robots, computers

5. What is a service?
A service is intangible – you can’t touch or see it – people doing things for you but you pay them. Eg window cleaner
Services do not last a long time – once you’ve used the service it is gone.
Consumer services – which we as consumers use eg taxis, bus service, education, health
Capital services – businesses use them to allow them to produce or provide other goods and services eg computer maintenance engineers.