Chapter 1 - The Changing Face Of Business

Question 1

What is Business

Answer 1

What is Business?

Business is made up of all profit seeking activities and enterprises that provide goods and services necessary to an economic system.

Question 2

How does business help it’s citizens standard of living?

Answer 2

Business help it’s citizens standard of living by providing a means which generates tangible goods or service.

Question 3

In the core of every business aim what does it have?

Answer 3

Every business aim has a process.

Question 4

Explain the exchange between a buyer and seller.

Answer 4

A buyer identify a need for a good or service and trades money with a seller to obtain that product.
The seller take-part in the process in hopes of attaining profits.

Question 5

What is the main element in accomplishing goals mandatory of continuous improvement in the standard of living?

Answer 5

Profit.

Question 6

What are profits?

Answer 6

Profits represent rewards for business people who take the risk involved in mixing people, technology and information to create and market want-satisfying goods and services.

Question 7

What does profits serve as?

Answer 7

Profit serve as incentive or motivation for people to start companies, expand them, and provide consistently high-quality competitive goods and services.

Question 8

Why must profits be recognize as a central focus for business?

Answer 8

Profit must be recognize as a central focus for business because without profits a company could not survive.

Question 9

Why must business people also recognize their social and ethical responsibilities?

Answer 9

They must recognize their social and ethical responsibilities to succeed in the long run because companies must deal responsibly with their employees, supplies, competitors, government and the general public.

Question 10

What are not-for- profit organizations?

Answer 10

Not-for- profit organizations can be defined as businesslike establishments that have primary objectives other than returning profits to their owners.

Question 11

How does Not-for profit organizations play an important role?

Answer 11

Not-for- profit organizations play an important role by placing public service above profits.

Question 12

Why does not-for- profit organization need to raise money?

Answer 12

Not-for-profit needs to raise money so they can operate and achieve their social goal.

Question 13

What are the two sectors not-for-profit organization have?

Answer 13

Not-for-profit has the private sector and public sector.

Question 14

What does the Not-for-profit private sector consist of?

Answer 14

The not-for- profit private sector consist of museums, libraries, trade associations, and charitable and religious organizations.

Question 15

What does Not-for profit public sector consist of?

Answer 15

Not-for profit public sector consist of government agencies, political parties and labor unions.

Question 16

How does Not-for profit organization secure funding?

Answer 16

Not-for profit secure funding from both private sources, including donations, and government sources.

Question 17

What are Not-for- profit organizations exempt from?

Answer 17

Not-for profit organizations are exempt from federal, state and local taxes.

Question 18

Even though not-for- profit organization focus on goals other than producing profits what challenges do they face which is similar to profit-seeking businesses?

Answer 18

Without funding they cannot do research, obtain raw materials or provide services.

Question 19

What does Not-for profit organization rely on?

Answer 19

Not-for profit organizations rely on contributions, with some assistance from federal grants and investments.

Question 20

What are some of the activities Not-for- profit organization do to raise money?

Answer 20

Some not-for profit organizations sell merchandise or set up profit generating arms to provide goods and services for which people are willing and able to pay.

Question 21

What does an economic system require to successfully operate?

Answer 21

An economy system requires certain inputs to operate successfully.

Question 22

What’s the name of the common term economist use and what does it refer to?

Answer 22

Economist use the term factors of production and it refers to the four basic inputs.

Question 23

What are the the four basic inputs when it comes to factors of production?

Answer 23

The four basic inputs are: natural resources, capital, Human Resources and entrepreneurship.

Question 24

What are natural resources?

Answer 24

Natural resources are all production inputs that are useful in their natural state.

Question 25

What are some of the natural states that comes under natural resources?

Answer 25

Some of the natural states are agricultural land, building sites, forest and mineral deposits.

Question 26

What is the basic input that is required in any economic system?

Answer 26

The basic input required for any economic system would be natural resources.

Question 27

What is capital?

Answer 27

Capital is another key source that includes technology, tools, information and physical facilities.

Question 28

How is technology define when it comes under capital?

Answer 28

Technology is defined as a broad term that refers to such machinery and equipment as computers and software, telecommunications and inventions designed to improve production.

Question 29

Why is information that is frequently improved becomes a critical factor?

Answer 29

Information that is frequently improved by technological innovations is critical because both managers and operating employees require accurate, timely information for effective performance of their assign tasks.

Question 30

How does technology play an important role?

Answer 30

Technology can result in a new product, technology helps a company improve a product and technology helps a company operate smoothly by tracking deliveries, more efficient communication, analyzing data, or training employees.

Question 31

What does a company needs to do to remain competitive?

Answer 31

To remain competitive, a firm needs to continually acquire, maintain, and upgrade it's capital, and business need money for that purpose.

Question 32

Where does a company funds come from?

Answer 32

A company funds may come from owner-investments, profits plowed back into the business or loans extended by others.

Question 33

When the company receive these funds, how does the money go to work?

Answer 33

The money goes to work by building factories;purchasing raw material and component parts and hiring, training, and compensating workers.

Question 34

What type of payment does person receive who supply capital?

Answer 34

The payment persons recover who supply capital would factor payments in the form of interest.

Question 35

What is Human Resource?

Answer 35

Human Resources represents another critical input in every economic system. Human Resources include anyone who works, from chief executive officer of a huge corporation to a self-employed editor.

Question 36

What does Human Resources encompasses?

Answer 36

Human Resources encompasses both physical labor and the intellectual inputs contributed by workers.

Question 37

Why does companies rely on their employees?

Answer 37

Companies rely on their employees as a valued source of ideas and innovation, as well as physical efforts .

Question 38

How does companies solicit employee ideas?

Answer 38

Companies solicit employee ideas through traditional means, such as online suggestion box or in staff meetings. Others encourage creative thinking during company-sponsored hiking or rafting trips or during social gatherings.

Question 39

What is entrepreneurship?

Answer 39

Entrepreneurship is the willingness to take risks to create and operate a business.

Question 40

What's an entrepreneur?

Answer 40

An entrepreneur is someone who sees a potentially profitable opportunity and then devises a plan to achieve success in the marketplace and earn those profits.