Role Of Business

Question 1

What is a business?

Answer 1

A business can be defined as the organised effort of individuals to produce and sell products that satisfy individual’s needs and wants for a profit.

Question 2

What are the 8 roles of a business?

Answer 2

Producing Goods and Services
Profit
Employment
Income
Choice
Innovation and Invention
Entrepreneurship and Risk
Wealth Creation

Question 3

What is the end result of production in a business?

Answer 3

Answer: The end result of production is a product, which can be either a good or a service.

Question 4

Differentiate between goods and services.

Answer 4

Answer: Goods are tangible products that we can see, feel, touch, and weigh, while services are intangible activities performed for consumers.

Question 5

Provide an example of a tangible product.

Answer 5

Answer: Examples of tangible products include food, equipment, and clothes.

Question 6

Give an example of an intangible service.

Answer 6

Answer: Examples of intangible services include getting makeup/hair done and using an Uber driver.

Question 7

Define profit in the context of a business.

Answer 7

Answer: Profit is the return or reward that business owners receive for producing products that consumers want and need.

Question 8

Why is profit essential for a business’s survival?

Answer 8

Answer: Profit is essential for covering day-to-day expenses and ensuring the long-term survival of a business.

Question 9

What does profit represent for business owners?

Answer 9

Answer: Profit represents the financial gain or reward for the risks and efforts invested by business owners.

Question 10

How do businesses contribute to employment?

Answer 10

Answer: Businesses employ people to perform various activities within the organization, contributing to job creation.

Question 11

What percentage of private sector jobs do businesses typically provide?

Answer 11

Answer: Businesses typically provide around 80% of private sector jobs.

Question 12

What factors influence the number of employees in a business?

Answer 12

Answer: The product being offered and the demand within the business influence the number of employees.

Question 13

Who receives income from a business?

Answer 13

Answer: Owners, employees, and shareholders receive income from a business.

Question 14

Explain how employees are remunerated.

Answer 14

Answer: Employees receive wages or salaries in exchange for their labor.

Question 15

What is a dividend, and who receives it?

Answer 15

Answer: A dividend is a portion of profits paid to shareholders in private/public companies.

Question 16

How does choice benefit consumers in a market?

Answer 16

Answer: Choice gives consumers the freedom to select from a variety of products for similar purposes.

Question 17

What does competition driven by consumer choice lead to?

Answer 17

Answer: Consumer choice-driven competition leads to lower prices and encourages innovation.

Question 18

Give an example of how choice impacts product innovation.

Answer 18

Answer: Competition among smartphone brands leads to continuous innovation in features and technology.

Question 19

Differentiate between innovation and invention.

Answer 19

Answer: Innovation is the improvement of existing things, while invention is the creation of something new.

Question 20

How are existing products improved through innovation?

Answer 20

Answer: Research and development (R&D) lead to improvements in existing products through innovation.

Question 21

What role does research and development (R&D) play in business innovation?

Answer 21

Answer: R&D plays a crucial role in creating new products and enhancing existing ones through innovation.

Question 22

Define an entrepreneur in the context of a business.

Answer 22

Answer: An entrepreneur organizes business ventures and takes on monetary risks with the aim of making a profit.

Question 23

Explain the concept of assuming monetary risk in business.

Answer 23

Answer: Entrepreneurs invest their resources and take financial risks in the hope of achieving business success.

Question 24

How can businesses turn individuals’ ideas into livelihoods?

Answer 24

Answer: Businesses offer individuals the opportunity to turn their innovative ideas into profitable ventures.

Question 25

How do businesses contribute to economic growth and wealth?
(Job creation - spending - economic growth)

Answer 25

Answer: Businesses create jobs, income, and spending, leading to economic growth, wealth, and increased production.

Question 26

Describe the relationship between employment, spending, and economic growth.

Answer 26

Answer: Employment leads to income, which drives consumer spending, contributing to economic growth.

Question 27

Explain how businesses lead to the production of goods and increased employment.

Answer 27

Answer: Businesses create jobs, demand for goods/services, and investment, fostering economic expansion.

Question 27

How do businesses enhance our standard of living?

Answer 27

Answer: Businesses provide a wide range of products that improve our quality of life.

Question 28

Give an example of a product that improves quality of life.

Answer 28

Answer: Smart home devices that enhance convenience and energy efficiency.

Question 29

What impact can a variety of business products have on our lives?