chapter 1 business

Question 1

What are the financial aims and objectives of a business?

Answer 1

Survival, profit, sales, market share, financial security

These objectives are essential for the sustainability and growth of a business.

Question 2

What are the non-financial aims and objectives of a business?

Answer 2

Social objectives, personal satisfaction, challenge, independence, control

Non-financial objectives can be equally important for a business’s overall mission.

Question 3

Why do business aims and objectives change?

Answer 3

In response to market conditions, technology, performance, legislation, internal reasons

Businesses must adapt to external and internal factors to remain competitive.

Question 4

What are the main types of business ownership?

Answer 4

Sole trader, partnerships, limited companies (private and public), public corporations

Each type has distinct legal and financial implications.

Question 5

What characteristics relate to the size of an organization?

Answer 5

Concepts of risk, ownership, limited liability, public ownership pros and cons, ownership, control, sources of finance, use of profits, stakeholders, shareholders

Understanding these characteristics helps in analyzing business structures.

Question 6

What are the different forms of business organization?

Answer 6

Franchises, social enterprises, multinationals

Each form has unique operational frameworks and objectives.

Question 7

What does the primary sector involve?

Answer 7

Extracting raw materials from the earth

This sector is fundamental for providing the resources needed by other sectors.

Question 8

What does the secondary sector involve?

Answer 8

Converting raw materials into finished or semi-finished goods

It plays a critical role in manufacturing and production.

Question 9

What does the tertiary sector involve?

Answer 9

Provision of a wide variety of services

This sector is crucial for supporting the economy and providing value to consumers.