Topic 1 - What Is Business?

Question 1

What Do Businesses Supply And Sell?

Answer 1

They supply and sell goods and services to customers who are willing to pay for them.

Question 2

What Is A Good?

Answer 2

Physical items.

Question 3

What Is A Service?

Answer 3

Action performed by other people to aid the customer.

Question 4

What Are Businesses Objectives?

Answer 4

Quantifiable targets or goals to be achieved within a given time frame.

Question 5

What Is The Public Sector?

Answer 5

Government owned.

Question 6

What Is The Private Sector?

Answer 6

Privately owned.

Question 7

What Can Businesses Objectives Be Referred To As?

Answer 7

Corporate Objectives.

Question 8

What Are Some Reasons Why People Start Businesses?

Answer 8

~ Possibility of financial reward
~ Expect to make more than they can earn as an employee
~ Be their own boss and make own decisions
~ Opportunity to do a job that your are really interested in.

Question 9

What Are All The 6 Business Objectives?

Answer 9

~ Profit
~ Growth
~ Survival
~ Cash flow
~ Social
~ Ethical

Question 10

What Do We Mean By The Profit Objective?

Answer 10

To achieve a sales revenue that is higher than total costs.

Question 11

What Are The 2 Types Of Profit?

Answer 11

~ Profit maximisation
~ Profit optimisation

Question 12

What Do We Mean By Profit Maximisation?

Answer 12

Only focusing on profit.

Question 13

What Do We Mean By Profit Optimisation?

Answer 13

Not always focusing on profit.

Question 14

What Do We Mean By The Growth Objective?

Answer 14

To increase in size either by value or volume of sales.

Question 15

What Does Growing Organically Mean?

Answer 15

~ Opening new stores
~ Launching new products

Question 16

What Does Growing Externally Mean?

Answer 16

~ Joining with other businesses
~ Taking over other businesses

Question 17

What Do We Mean By The Survival Objective?

Answer 17

To continue to exist as a business.

Question 18

What May Survival Be The Primary Objective For, What Kind Of Businesses?

Answer 18

~ Start up businesses
~ Businesses experiencing difficult trading conditions

Question 19

What Do We Mean By The Cash Flow Objective?

Answer 19

To ensure sufficient cash is available to meet day to day expenses.

Question 20

What Is Cash Flow?

Answer 20

The flow of cash into and out of a business over a period of time.

Question 21

What Do We Mean By The Social Objective?

Answer 21

To behave in a way which benefits society.

Question 22

How Can We Achieve Social Objectives?

Answer 22

~ Creating employment
~ Supporting local community
~ Improving educational standards
~ Invest into local community and social projects

Question 23

What Kind Of Businesses Would Have Social Objectives?

Answer 23

Non for profit businesses.

Question 24

What Are Some Smaller Businesses Objectives?

Answer 24

~ Offer the highest quality of goods and services
~ Give excellent customer service
~ Have a great image and reputation
~ Develop new products ahead of competitors
~ Offer a diverse range of goods and services