Role Of A Business

Question 1

What is a market economy?

Answer 1

An economic system where production, distribution, and pricing are determined by supply and demand, with minimal government intervention. Consumers and businesses make most economic decisions, and prices act as signals for resource allocation.

Question 2

List four roles businesses play in society.

Answer 2

Back:
1. Economic Growth (job creation, wealth generation).
2. Innovation (new products/services).
3. Employment (job opportunities).
4. Social Responsibility (benefiting society/environment).

Question 3

Business Roles in Society

Answer 3

Economic Growth**
- Creates jobs and wealth through production

11. Innovation
    
    • Develops new products/technologies
12. Social Responsibility
    
    • Ethical practices beyond profit (e.g., sustainability)
13. Resource Allocation
    
    • Distributes limited resources to maximize satisfaction

Question 4

Formal Sector Definition

Answer 4

• Registered, regulated and taxed activities

Question 5

Formal Sector Features

Answer 5

• Legal protections for workers
  
  • Contributes to GDP
  • Stable employment

Question 6

Informal Sector Definition

Answer 6

Unregistered, unregulated economic activities e.g street vendors

Question 7

Business Ethics

Answer 7

18. Definition
    
    • Moral principles guiding business decisions
19. Key Principles
    
    • Integrity, fairness, transparency, accountability
20. Importance
    
    • Builds trust with stakeholders
    • Ensures long-term sustainability

Question 8

Resource Allocation

Answer 8

21. Limited Resources
    
    • Natural resources, labor, capital, entrepreneurship
22. Unlimited Needs
    
    • Physical, safety, social, self-realization needs
23. Allocation Challenge
    
    • Deciding what/how much to produce from scarce resources

Answer 10

Here are additional flashcards incorporating the Lesson Objectives from the document, ensuring comprehensive exam preparation:

Front: Explain the role of business in making products/services.
Back: Businesses transform resources (natural, human, capital) into products/services to meet societal needs, driving economic growth, innovation, and employment.

Front: How do business organizations meet society’s needs in a market economy?
Back: By responding to supply/demand signals: producing goods/services consumers want, creating jobs, and allocating resources efficiently with minimal government intervention.

Front: Distinguish between the world’s main economic systems.
Back:
1. Market Economy: Supply/demand driven (e.g., USA).
2. Command Economy: Government-controlled (e.g., North Korea).
3. Mixed Economy: Combines both (e.g., most modern nations).

Front: Describe the nature and purpose of business management as a science.
Back: It applies systematic principles (e.g., planning, organizing) to achieve goals efficiently, using data-driven decision-making and measurable outcomes.

Front: Distinguish between different management functions.
Back:
1. Planning: Setting goals/strategies.
2. Organizing: Structuring resources/tasks.
3. Leading: Motivating employees.
4. Controlling: Monitoring performance.

• Pair these with earlier flashcards (e.g., Flashcard 10 on management functions) to reinforce connections between objectives and content.
• Use Flashcard 13 (economic systems) to contrast with Flashcard 1 (market economy specifics).

Example Review Question:
“How do the roles of business (Flashcard 11) align with Namibia’s economic challenges (Flashcard 8)?”

This ensures you understand both isolated concepts and their broader applications. Keep practicing!