1.1 What is a business?

Question 1

The nature of business

Answer 1

• Producting crops or extracting raw materials
• Creating a product
• Providing a service

Question 2

Resource inputs

Answer 2

The right quality, quantity and existence of human, physical, financial, enterprise inputs

Question 3

Production process: capital-intensive

Answer 3

Use of land or machinery, costs money

Question 4

Production process: labour-intensive

Answer 4

Use of labour, fairly low or high skilled workers

Question 5

Primary business sector

Answer 5

Raw materials extraction

Question 6

Secondary business sector

Answer 6

Processing raw materials by manufacturing

Question 7

Tertiary business sector

Answer 7

Services using products like healthcare or education

Question 8

Quarternary business sector

Answer 8

Services focused on knowledge, generally technology

Question 9

Production chain

Answer 9

Steps through the different sectors that have to occur in order to turn raw materials into a consumer good that is marketed

Question 10

Reasons to start a business

Answer 10

RINCIFS
Reward, Independence, Necessity, Challenge, Interest, Finding a gap, Sharing an idea

Question 11

Process of starting up a business

Answer 11

1. Organizing the basics
2. Researching the market
3. Planning the business
4. Establishing legal requirements
5. Raising the finance
6. Testing the market

Question 12

Challenges a new business might face

Answer 12

1. Organization
2. Market research
3. Business plan
4. Legal requirements
5. Finance
6. The market