1.1 INTRO

Question 1

The role of a business

Answer 1

A decision making organization involved in the process of using inputs to produce goods/ services
Inputs are the resources a business uses in the production process, (labor and raw materials) this process generates outputs - products. the term product can refer to both goods and services. goods are physical products services are intangible.

Question 2

Business sectors

Answer 2

Primary = extraction of raw materials or natural resources from land - coal mining or fishing

Secondary = manufacturing industry taking the raw materials from primary sector and converting into products. - car manufacturers,

Tertiary = providing a service which are activities done by people or a business for consumers - hairdressers, banks

Quaternary = industries providing information services such as computing

Question 3

Business functions

Answer 3

Finance

- Funds for the firm 
- Acquiring funds 
  - Profit and loss 
- Break even 
- Accounting 
- Budgeting 
- Sales forecasting 
  - Investment appraisal

Human resources

- Employee benefits and salaries 
- Recruiting 
- Training 
- Health and well-being of staff 
- Terminating contracts 
- Conflict resolution 
- Appraisal 

Operations management: 

- Actual logistics of the company - designing manufacturing process
- Finding the most leanest and efficient way of productions 
- Timescale planning 

Marketing

	- Advertising 
- Finding customers 
- Promotion 
- Market research 
- Competitors analysis 
  - Product, price place promotion People,

Question 4

Entrepreneurs vs Intrapreneurs

Answer 4

Entrepreneurs - someone who takes both financial and personal risk to start up and manage new venture

Intrapreneur - someone within a large organization who takes direct responsibility for turning and idea into a profitable finished product through using ‘entrepreneurial talents’ such as creativity and innovation.

Question 5

Qualities of Entrepreneurs

Answer 5

Innovative 
Commitment 
Self - motivation 
Multi skilled 
Leadership skills 
Belief in oneself 
Risk taker

Question 6

Reasons of starting a new business:

Answer 6

Wealth 
Income 
Inheritance 
Enjoyment 
Challenge 
Autonomy  
Security

Question 7

Steps in starting business

Answer 7

Refine idea 
Prepare business Plan 
source capital
Decide legal structure 
Administrative task (registrations) 
Determine location 
Hire employees if needed