1.1 What is a Business?

Question 1

Which are the roles of a Business?

Answer 1

1. Meet needs and wants from individuals and organizations 2. create products, provide services,

Question 2

What is a Tangible product?

Answer 2

product that can be seen or taken home (ex. iPhone, vegetables)

Question 3

What is an Intangible product?

Answer 3

product that can’t be taken physically (ex. yoga class)

Question 4

What are the Inputs of resources needed in production?

Answer 4

human, physical, financial, enterprise. these inputs are transformed to production

Question 5

what are the outputs of production?

Answer 5

products and or services

Question 6

why is human an input?

Answer 6

all businesses need human input. some might need 1 individual or various with different skills

Question 7

why is financial an intput

Answer 7

all businesses need finance/capital to make a product or service. this finance could be given by loans, savings or overdraft. need finance to work

Question 8

why is physical an input?

Answer 8

physical materials, machinery, and space is required to make a product or service. even online businesses need a computer machinery

Question 9

why is enterprise an input?

Answer 9

the business idea and will to see all the other areas become functioning.

Question 10

what are the 4 sectors ?

Answer 10

primary, secondary, tertiary, quaternary

Question 11

What involves the primary sector?

Answer 11

acquiring raw materials. (metals, and coal have to be mined, oil drilled from the ground, fruits farmed and animal)

Question 12

what involves the secondary sector?

Answer 12

manufactures and assembles products. transform raw materials into finished goods. (ex. cookies, cars, phones

Question 13

what involves the tertiary sector?

Answer 13

provides services to customers, which sometimes includes tangible goods. Examples include banks, education, transportation, insurance,

Question 14

what involves the quaternary sector ?

Answer 14

provides services focused on knowledge. Includes IT research and development, consultancy

Question 15

which sectors provide goods?

Answer 15

primary and secondary

Question 16

which sectors provide services?

Answer 16

tertiary and quaternary

Question 17

what are some examples of primary sectors?

Answer 17

oil drilling, fishing, coal mining, hunting, crop picking

Question 18

what are some examples of secondary sector?

Answer 18

baker, car manufacturer, builder, dress maker

Question 19

what are some examples of the tertiary sector?

Answer 19

taxi company. Starbucks, McDonalds, FedEx, Apple, Government Bodies

Question 20

what are some examples of the quaternary sector?

Answer 20

medical scientist, magazine company

Question 21

What is an entrepreneur?

Answer 21

individual who develops and runs a business assuming all the risks and rewards of the company

Question 22

what are some characteristics of an entrepreneur?

Answer 22

sees opportunities, has skills and initiative to take good ideas to market, makes right decisions that lead to profitability

Question 23

what are the opportunities to start a business?

Answer 23

rewards, necessity, sharing an idea, finding a gap, interest, challenge, independence

Question 24

what are the challenges of starting a business?

Answer 24

lack of experience, difficulty raising finance, inability to raise brand awareness, poor location chosen, lack of costumer interest, difficulty finding supplies. difficulty registering the business following the law, etc.

Question 25

what are the reasons why businesses fail?

Answer 25

not investigating the market, expanding too fast, business plan problems, little financing, rigidity (don’t adapt to change), bad location, internet pressure and marketing

Question 26

what is a business plan?

Answer 26

written document that describes a business, its objectives and strategies

Question 27

why are business plans useful?

Answer 27

requires a business owner to plan their marketing, financial, and Human Resources of the business. Helps focus the entrepreneur, Coordinates activities within the business, Sets goals for the business easier to achieve when written

Question 28

In what are business plans helpful?

Answer 28

focuses the entrepreneur , coordinates activities within the business, sets goals for the business that are easier to achieve when written down

Question 29

what are the limitations of a business plan?

Answer 29

long time to make, rarely updated or used after, only as good as the research and forecasts that went into making it, external factors can affect accuracy

Question 30

what are some of the elements of a business plan?

Answer 30

information of owner(s) background & experience, overview of business and its products and ideas, market analysis, goals for the short and medium and long term, financial information