Question

In which of the three types of business processes in the basic business model does a business transform resources into a product or service that customers want?

a. Sales and collections
b. Acquisitions and payments
c. Conversion
d. Accounts receivable

Answer 1

The process in which a business turns resources into a product customers want is termed conversion, and for pizza making, the inputs are labor, capital, raw materials, and entrepreneurship.

Step-by-step explanation:

In the basic business model, the process in which a business transforms resources into a product or service that customers want is known as the conversion process. In the context of pizza making, the inputs or factors of production include labor (the pizzaiolo's skills and time), capital (the oven and other kitchen equipment), raw materials (such as flour, water, yeast for the dough, tomatoes, spices, cheese, and other toppings), and possibly entrepreneurship (the pizzaiolo's initiative and business sense).

The pizzaiolo combines all these inputs effectively to produce a desirable output, in this case, a delicious pizza. These inputs are transformed through the conversion process into the final product that the customer can purchase and enjoy.