1.1 What is a business?

Question 1

what are inputs?

Answer 1

resources needed to create a product

Question 2

3 types of inputs

Answer 2

physical, financial, and human resources

Question 3

physical inputs

Answer 3

raw materials or semi-finished goods (or capital goods like machinery)
(minerals, metals, goods processed but nor consumer goods)

Question 4

financial inputs

Answer 4

funds needed to start a business
(& grow it and keep it running)

Question 5

human resource inputs

Answer 5

people needed to run the business
(managers, employees, enterprise)

Question 6

Business functions (4)

Answer 6

human resources management, finance and accounts, marketing, operations

Question 7

human resources management function

Answer 7

makes sure business employs correct number of skilled employees etc.
and makes sure employees are treated ethically

Question 8

finance and accounts function

Answer 8

ensure business has enough money to carry out business activities

Question 9

marketing function

Answer 9

process of selling the right product, at the right time, to the right customers

Question 10

operations function

Answer 10

how the business’s core activity is carried out (how and what quantity of goods/ services are produced)

Question 11

what are goods

Answer 11

tangible products with physical characteristics

Question 12

what are services

Answer 12

intangible

Question 13

what is feedback

Answer 13

when the output of a system becomes an input to the same system

Question 14

negative feedback

Answer 14

when output feeds back into input and drives system in the opposite direction

Question 15

positive feedback

Answer 15

reinforces;
moves system and processes in the same direction

Question 16

primary purpose of business activity

Answer 16

produce goods or services (that satisfy a need or demand in the market)

Question 17

secondary purpose of business activity

Answer 17

meet needs and preferences of customers

Question 18

tertiary purpose of business activity

Answer 18

add value to products or services
(differentiates products from competitors, create an USP, and increase customer satisfaction)

Question 19

what is enterprise

Answer 19

a business idea & the desire to take the risk in turning it into a business idea

Question 20

the primary sector

Answer 20

extraction or production of raw materials
(fishing, agriculture, mining etc.)

Question 21

the secondary sector

Answer 21

manufacturing (of goods) and processing
(of raw materials)

Question 22

the tertiary sector

Answer 22

businesses that sell a service (intangible)
(retail, education, entertainment, transportation etc.)

Question 23

quaternary sector

Answer 23

services focused on knowledge
(collecting, processing and selling information/ data)

Question 24

chain of production/ supply chain

Answer 24

steps involved in creating products

Question 25

integrated businesses

Answer 25

businesses involved in 2+ sectors

Question 26

relationship between value and sector

Answer 26

each sector adds more value than the previous (higher added value equates to higher profits) (however, higher value does not mean higher salaries)

Question 27

relationship between economic development and sector

Answer 27

less developed economies are focused on the primary sector (lower education rates and lack of infrastructure)

Question 28

what is an entrepreneur

Answer 28

people who start a business; willing and able to create a new business idea and take risks

Question 29

what do entrepreneurs do

Answer 29

organise resources (coordinate), make business decisions, take risks (new products) (understand communities and their problems, plan solutions, take actions, and share and grow these actions to grow impact)

Question 30

intrapreneurship

Answer 30

promoting entrepreneurial thinking and behaviour. empowering employees to think and act like entrepreneurs. encourages them to take risks, innovate, and develop new ideas, (taps into creative potential of employees and increases copetitive advantage)

Question 31

skills required by entrepreneurs

Answer 31

communication, team working, problem solving, organisation, numeracy, creativity, hard working, resilience, initiative, risk taking, self confidence, PERSUASIVE

Question 32

reasons for starting a business

Answer 32

- new business idea - passion to make change - market need - earn a living - greater financial reward - control (work & life) - work-life balance

Question 33

challenges of starting a business

Answer 33

- lack of funds - strong competition - small/ inexistent market (demand) - unskilled employees or lack of collaboration - poor management skills - economic, environmental, or social shocks

Question 34

steps to start a business

Answer 34

- refine idea - market research - make business plan - choose legal structure - register business - find location - hire employees - get funding

Question 35

SWOT analysis

Answer 35

Strengths Weaknesses Opportunities Risks (S & W: Internal --> consider human resources, finance, marketing and operations) (O & T: External --> conditions)

Question 36

STEEPLE analysis

Answer 36

Sociocultural: demographics, characteristics Technological: updates/ trends Environmental: natural environment Economic: demand Political: laws, parties, government Legal: follow laws and regulations Ethical: respect planet and humans

Question 37

Business plan uses

Answer 37

gives credibility, reduces risks, inspires others to join - consider purpose and audience - describe business and functions

Question 38

secondary research

Answer 38

gathered by others

Question 39

primary research

Answer 39

creating new information

Question 40

quantitative data

Answer 40

numerical

Question 41

qualitative data

Answer 41

non-numerical