Unit 1.1 - Introduction to Business

Question 1

What are the 4 business sectors

Answer 1

Primary: Farming, fishing= Conversion of natural resources
Secondary: Manufacturing or construction of products
Tertiary: Providing service to the population
Quaternary: Based on intellectual, knowledge activities

Question 2

What is chain of production?

Answer 2

Production -> Manufacturing -> Services -> Consumers

Question 3

What is the difference between entrepreneurship and intrapreneurship?

Answer 3

Entrepreneurship: Owners and/or operator of organisation

Intrapreneurship: Employees of organisation

Question 4

What are the problems a new business might face? (Mention at least 5)

Answer 4

• Lack of finance
• Cash flow problems -> Financing working capital
• Marketing problems
• People management problems
• Legalities
• Production problems
• High production costs
• Poor location
• External influences -> Oil crisis/economic recession