BUSINESS N MANAGEMENT

Question 1

the difference between the income an entrepreneur receives from the sale of his goods and services and the expenses he incurs to produce them i.e. it is income minus expenses.

Answer 1

Profit

Question 2

•If demand is high?

Answer 2

Entrepreneurs make large profit

Question 3

Without profit?

Answer 3

businessmen will not invest

Question 4

Profit should be maximized to provide a fair share:

Answer 4

-to the owner or stockholders in the form of dividends

Question 5

• involved in the production and distribution of goods and services,
• aimed to meet the economic needs of consumers
•with an objective of eventually earning profit.

Answer 5

Business

Question 6

The role of business is to produce goods and services which consumers need.

Answer 6

Relationship Between Business and the Economy

Question 7

the total market value of goods and services produced by a country in any given period (usually quarterly, semi annually, annually

Answer 7

GNP or GROSS NATIONAL PRODUCT

Question 8

a group of business firms offering similar goods an services.

Answer 8

Industry

Question 9

Industry classified as:

Answer 9

-agricultural,
• manufacturing,
• trade,
• construction and
• government sectors.

Question 10

study of how a society produces and distributes its desired goods and services.

Answer 10

Economics

Question 11

(factors of production) - Land, labor, capital and entrepreneur

Answer 11

Economic Resources

Question 12

•The business company must follow all government rules and regulations

Answer 12

Responsibility of a Business
Enterprise

Question 13

Why People Engage in Business:

Answer 13

1. Power
2. Profit
3. Service to the community
4. Prestige
5. Livelihood
6. Social approval

Question 14

Maslow’s Hierarchy of Needs

Answer 14

1. Physiological needs
2. Safety and security needs
3. Love and belonging needs
4. Self esteem needs
5. Self actualization needs

Question 15

Kinds of business

Answer 15

1. Industries
2. Commerce
3. Service enterprises

Question 16

The conversion of raw materials into finished products or goods and the application of labor upon raw materials so that greater usefulness becomes possible after the process.

Answer 16

Industry

Question 17

farming, fishing, mining.

Answer 17

Extractive Industry

Question 18

• use materials and supplies turned out by the extractive industries and change these raw materials into various articles of materials for further production of goods and new products.

Answer 18

Manufacturing industry

Question 19

The process of buying and selling where the goods are moved from the point of production to the point of consumption.

Answer 19

Commerce

Question 20

Primarily concerned with the satisfaction of the needs and wants of the consumers.

Answer 20

Service enterprises

Question 21

Service Enterprises subdivided into two:

Answer 21

-Public and community service
-Professional and trade service

Question 22

Legal Forms of Business
Ownership

Answer 22

1. Sole Proprietorship
2. Partnership
3. Corporation

Question 23

• owned by a single individual who is singly responsible for running the business and I accountable for all debs and obligations related to the businesses
• The simplest way to set up a business.

Answer 23

Sole Proprietorship

Question 24

enjoys exclusive control and decision making as well as gets all the profits earned but he also shoulders all losses and has unlimited liability which means payment of his loans will extend to his personal assets.

Answer 24

sole proprietorship

Question 25

Advantage

Answer 25

1. Ease and cost of formation 2. Secrecy 3- Distribution and use of profits 4. Control of the business 5. Government regulation 6. Taxation 7. Closing the business

Question 26

Disadvantage (SOLE)

Answer 26

1. Possibility that the owner lacks ability and experience 2. Difficulty in attracting and keeping quality employees 3. Difficulty in raising additional capital 4. Limited life of the firm 5. Unlimited liability

Question 27

•An agreement in which two or more persons combine their resources in a business with a view to making profit.

Answer 27

Partnership

Question 28

All owners share the management of the business and each is personally responsible for and must assume the consequences of the actions of the other partners.

Answer 28

General partnership

Question 29

Some members are general partners who control and mange the business and may be entitled to a greater share of the profit while other partners are limited and contribute only capital, take no part in control or management, and are liable for debts to a specific extent only.

Answer 29

Limited Partnership

Question 30

Advantage of limited partnership

Answer 30

1. Ease of formation 2. Pooling of knowledge and skills 3. More sources of capital 4. Ability to attract and retain employees 5. Tax advantage

Question 31

• Is a legal entity that is separate from its owners, the shareholders. No shareholder is personally liable for the debts, obligations or acts of the corporation. • Directors and officers can bear liability for their involvement with the corporation.

Answer 31

Corporation

Question 32

Corporations normally can exist for a I life of

Answer 32

50 years

Question 33

An artificial being created by the operation of law, having the rights of a succession and the powers, attributes, and properties expressly authorized by law or incident to its existence.

Answer 33

Corporation

Question 34

Corporation Advantage

Answer 34

1 Limited liability 2. Ease of expansion 3 Ease of transferring ownership 4- Relatively long life 5: Greater ability to hire specialized management

Question 35

Corporation Disadvantages

Answer 35

1. More expensive and complicated to organize 2. Double taxation 3. More extensive government restrictions and reporting requirements 4. Employees lack personal identification and commitment

Question 36

• is an entity organized by people with similar needs to provide themselves with goods or services or to jointly uses available resources to improve their income.

Answer 36

Cooperative

Question 37

is returned to the members according to the amount of their patronage.

Answer 37

Surplus earning

Question 38

Written contract granting permission to sell someone else's product or service in a prescribed manner over a certain period of time and in a specified territory.

Answer 38

Franchise

Question 39

Sometimes called a project study or a feasibility study evaluates the viability of a business undertaking.

Answer 39

The Project Feasibility Study

Question 40

Aspects of The Project Feasibility study

Answer 40

• Marketing Aspect • Organization and Management Aspect • Technical Aspect • Financial Aspect • Socio-Economic Aspect

Question 41

This refers to the formulation of objectives, programs, policies and procedures, rules/regulations in order to achieve the goals of the business:

Answer 41

Planning

Question 42

in order to achieve the goals of the business:

Answer 42

• Decision Making • Selecting the best course of action