Unit 1.1 What is a Business?

Question 1

Definition of a business

Answer 1

An organization that trades goods or services in a market

Question 2

What is a Good? Give an example

Answer 2

A good is a tangible product. Examples would be a water bottle, a computer, an earring.

Question 3

What is a Service? Give an example

Answer 3

A service is an activity done by one person to another person. Examples would be babysitting, teaching, tutoring, a haircut.

Question 4

Examples of both a service and a good together

Answer 4

Resturant (service+food), Construction (Service+remodel of the house), Amazon (Product+delivery)

Question 5

What is operations management?

Answer 5

Designing and controlling the production of goods and services

Question 5

What are the 4 functional areas of a business

Answer 5

1. Operations Management
2. Marketing
3. Finance
4. Human Ressources

Question 6

What is marketing?

Answer 6

Campaigns, ads, selling the product whilst attracting the target audience

Question 7

What is finance?

Answer 7

The people who control the money income, budgeting, outcome, allocation of funds, approving loans.

Question 8

What is human ressources?

Answer 8

Salary of employees, healthcare, wellbeing, hiring employees, interviews, training, contracts, employee benefits.

Question 9

What is revenue?

Answer 9

The money that a business will receive for their goods and services.

Question 10

What is costs of production?

Answer 10

The money spent in the process or creating the goods and services.

Question 11

Name the 4 Ps that Good uses

Answer 11

1. Product
2. Price
3. Place
4. Promotion

Question 11

Name the 7 Ps

Answer 11

1. Product
2. Price
3. Place
4. Promotion
5. People
6. Processes
7. Physical

Question 12

Name the 3 Ps that Services uses

Answer 12

5. People
6. Processes
7. Physical

Question 13

What are the 4 Business Sectors?

Answer 13

1. Primary
2. Secondary
3. Tertiary
4. Quaternary

Question 14

What is a primary business sector? Give an example.

Answer 14

Extraction of natural ressources. For example mining, fishing, hunting, agriculture

Question 15

What is a secondary business sector? Give an example.

Answer 15

Manufacturing processes. For example construction, textile industry, food industry

Question 16

What is a tertiary business sector? Give an example.

Answer 16

Selling services or skills. For example healthcare, real estate, collection of garbage

Question 17

What is a quaternary business sector? Give an example.

Answer 17

Providing information. For example data scientists, consultancy, university classes

Question 18

What is industrilization?

Answer 18

When an economy moves from the primary to secondary sector

Question 19

What is deindustrilization?

Answer 19

When an economy moves from the secondary to tertiary sector

Question 20

What is an entrepreneur?

Answer 20

Someone who takes the financial risk of starting and managing a new venture. These people have an idea, invested capital and savings, and accepted the responsibility

Question 21

What are the 4 factors of production?

Answer 21

1. Land
2. Labour
3. Capitol
4. Entrepreneurship

Question 22

What is an enterprise?

Answer 22

An enterprise is an organization that takes risks to produce goods or services in pursuit of profit.

Question 23

Defintion of land factor. Give an example.

Answer 23

All natural ressources anything above, near, or under the land. Example: Oil, minerals, forests

Question 24

Definition of labour factor. Give an example.

Answer 24

Physical and mental efforts that people contribute to production of goods and services. Examples: Teacher, construciton worker, taxi driver

Question 25

Definiton of capitol factor. Give an example.

Answer 25

Man made factor used to produce goods and services. Example: Machinery, tools, buildings, aiports

Question 26

Definition of entrepreneurship factor. Give an example.

Answer 26

A skill of a person to innovate new ways of doing things, take risks, and seek new opperutnities

Question 27

What is a consumer good?

Answer 27

For final use by the customer. Example: Car, food, furniture

Question 28

What is a capitol good?

Answer 28

Man made asset used to produce consumer goods or other capitol goods. Example: Machinery, Factories, Delivery trucks

Question 29

What is human capitol?

Answer 29

Economic value of a worker's skills, knowledge, experience

Question 30

What is natural captiol?

Answer 30

Natural ressources such as geology, air, water, soil

Question 31

What is financial capitol?

Answer 31

Funds or assets that indviduals use to finance their activities

Question 32

Name 4 common challenges for starting a business?

Answer 32

1. Poor location 2. Marketing problems 3. Legalties 4. High production costs

Question 33

What is GET CASH?

Answer 33

Potential oppertunities for starting a business

Question 34

What is the G

Answer 34

Growth - Rewards of an entrepreneur who own their own business

Question 35

What is the E

Answer 35

Earnings- People who have their own companies can make way more because they get a large chunk of the money

Question 36

What is the T

Answer 36

Transfer and Inheritance - Business owners pass down their business to their children so that they are financially stable

Question 37

What is the C

Answer 37

Challenge - Some people enjoy the challenge and the thrill of taking risks

Question 38

What is the A

Answer 38

Autonomy - There is freedom and flexibility of being self employed

Question 39

What is S

Answer 39

Security - More job security as you usually earn more (financial security for retirement)

Question 40

What is H

Answer 40

Hobbies - Some people enjoy making their own business as it directly links to their personal intrests

Question 41

What is a consumer

Answer 41

The end user of a product or a service but may not have purchase it

Question 42

What is a customer

Answer 42

Always purchased the product or service but may not have been the end user