1.1 Introduction to business management

Question 1

Goods

Answer 1

Goods are physical products that are ‘tangible’, meaning they can be touched. Goods include items like computers, TVs, clothing, furniture, vehicles and industrial equipment.

Question 2

Services

Answer 2

Services are intangible products that cannot be touched. When you purchase a service you usually go home better off but empty-handed. Services include a wide array of things like hairdressing, tutoring, accounting and car repair.

Question 3

The main business functions

Answer 3

human resources, finance and accounts, marketing, and operations

Question 4

The economic sectors

Answer 4

Primary Sector
Secondary Sector
Tertiary Sector
Quaternary Sector

Question 5

The primary sector

Answer 5

The primary sector involves extracting raw material from the earth. It includes activities such as agriculture, fishing, forestry, and mining for minerals, metals, and oil.

Question 6

The secondary sector

Answer 6

The secondary sector involves transforming raw materials into finished or semi-finished products. It includes construction, processing and manufacturing.

Question 7

The tertiary sector

Answer 7

The tertiary sector involves the delivery of services such as education, health care, travel and tourism, entertainment and home and car repair services.

Question 8

The quaternary sector

Answer 8

The quaternary sector includes services related to the development and use of data and information. It is a new term and is usually considered as a subset of the tertiary sector.

Question 9

Entrepreneurship

Answer 9

Entrepreneurship is the process of setting up a new business.

Question 10

Entrepreneurs

Answer 10

Entrepreneurs are the individuals with the talent, perseverance and appetite for risk that lead them to create new organisations.

Question 11

Intrapreneurship

Answer 11

Intrapreneurship is the activity of entrepreneurship when it takes place within an established organisation.

Question 12

Intrapreneurs

Answer 12

Intrapreneurs are encouraged by their employers to take risks to develop new products, processes, and services while retaining their status as employees.

Question 13

A business plan

Answer 13

A business plan is usually a written document that describes all the aspects of a new enterprise in terms of the product or business idea, marketing, finance, operations, and human resources.