Chapter 1- Business And It’s Challenges

Question 1

What are the types of companies?

Answer 1

Non profit companies and profit companies

Question 2

What are examples of profit based companies?

Answer 2

-State owned companies
-Private companies
-Personal liability companies
-Public companies

Question 3

What is the economic principle?

Answer 3

The whole matter of obtaining the greatest possible benefit with the limited resources available.

Question 4

What are the factors of production?

Answer 4

• Natural resources
• Human resources
• Capital
• Entrepreneurship

Question 5

Name and explain the economic systems.

Answer 5

Free market economy
- AKA as capitalism. Each individual in society is free to choose his economic activity. Very little government interference.

Command economy
- AKA as communism. The government owns almost all of the county’s resources and government officials decide what happens to the goods and services.

Socialism
- Individuals may own private property and choose their own form of economic activity but the government still owns many of the country’s resources.

Question 6

Explain the difference between AI and the internet of things.

Answer 6

AI is the accumulated intelligence of machines which can be used to assist the human intelligence of people. The internet of things is linked to the broadband internet with more electronic devices such as smart phones being connected all over then world.

Question 7

Name and list stakeholders of the business.

Answer 7

• Business related stakeholders
  Owners
  Investors
  Bankers
  Staff
• Opinion related stakeholders
  Media
  Potential employees
  Customers
  Suppliers
• Public related stakeholders
  Politicians
  Local authorities
  National authorities
  NGO’s

Question 8

What is CSR in South Africa?

Answer 8

CSR in South Africa is seen as the responsibility of large businesses to give back to the community.