Role Of A Business Flashcards
(21 cards)
What is the nature of business?
An organisation that produces and sells products for a profit to satisfy individuals’ needs and wants.
What does ‘profit’ represent in business?
The return or reward for producing products that consumers need and want.
How is profit calculated?
Profit = Revenue - Expenses
What are the two types of products businesses produce?
- Goods
- Services
What is a key difference between goods and services?
- Goods are tangible, while services are intangible.
Define ‘entrepreneur’.
An individual who starts, operates, and assumes the risk of a business venture in the hope of making a profit.
What is the significance of human resource management in business?
It contributes to business performance.
What are the main elements involved in successful marketing strategies?
- Market research
- Target market identification
- Marketing mix development
What is the role of finance in business?
Interpreting financial information for planning and management.
What is the acronym WIPELICE used for?
- Wealth
- Income
- Profit
- Entrepreneurship and risk
- Quality of life
- Innovation
- Choice
- Employment
What does the term ‘learn abouts’ refer to in the syllabus?
Content typically assessed in multiple choice and short answer questions.
What is the difference between gross profit and net profit?
Gross Profit = Revenue - COGS; Net Profit = Gross Profit - Expenses.
Fill in the blank: Businesses provide about ______ percent of all private sector jobs.
80
What are common influences in establishing a small to medium enterprise?
- Market demand
- Competition
- Regulatory environment
What are critical issues in business planning?
- Market analysis
- Financial forecasting
- Risk assessment
What role does innovation play in business?
It leads to improvements on existing products and better meeting customer needs.
What is the common pricing strategy for a basic cup of coffee?
Break down into parts: rent, costs of materials, labor, and profits.
What does the term ‘business planning process’ refer to?
The steps involved in establishing and planning a small to medium enterprise.
What is the potential profit if a coffee shop sells 200,000 cups at $3.95 each?
Approximately $790,000 in revenue.
What is one way to encourage customers to choose your coffee shop over competitors?
Offer unique products or promotions.
What is the importance of establishing a business plan?
It outlines the strategy and operational approach for the business.
