Business Management S1

Question 1

Define Entreprenuer and what they require/have

Answer 1

a person who sets up a business or businesses, taking on financial risks in the hope of profit.
1. ideas for the business
2. Invest in their own savings and capital
3. Accepted the responsibility of managing the business
4. Accepted the possible risks of failure

Question 2

Entreprenuer qualities

Answer 2

innovative
leadership skills
Risk Taker
Believe in themselves
committed and self motivated

Question 3

Problems faced by businesses as they start up

Answer 3

1. Competitive markets
2. Building a customer base
3. lack of working capital
4. poor time management skills
   RISKS GENERALLY ARISE THE MOST IN THE FIRST FEW MONTHS OF A BUSINESS STARTING

Question 4

Define Intrapreneurship

Answer 4

Intrapreneurs are individuals who are tasked with creating new and innovative products within an already-established business.

Question 5

Functions of a Business

Answer 5

1. Marketing: Creating, Designing, Promoting, Selling and distributing, builds brand image
2. Human Resources: Recruit and train employees, deal with employee relations and employee benefits
3. Finance: Manages money, credits, banking and investments, prepares financial reports of the company’s health
4. Operations Management: Supervising, designing, and controlling the production process, it is the management of processes used to design, supply, produce and deliver goods and services

Question 6

Business Sectors

Answer 6

1. Primary Sector: Extraction of raw materials
2. Secondary Sector: Processing of raw materials
3. Tertiary Sector: Service Based institutions
4. Quantenary Sector: Knowledge and Research-based

Question 7

Economic Development within Sectors

Answer 7

Production and employment tend to shift from primary to secondary, the more developed an economy gets.
Kiribati, Fiji, and Tonga, generally have more sectors in primary operating businesses
Malaysia, Austria in secondary
United States, China, Denmark in tertiary

Question 8

What is a Business Entity

Answer 8

A business entity refers to a legally recognized organization that engages in commercial, industrial, or professional activities with the aim of earning profits.

Question 9

What are the types of business entities?

Answer 9

1. Sole Proprietorship: 1 person or married couple is the sole owner and operator of the business and does not need to enter a general partnership with the state (has unconditional and full control over its business).
2. General Partnership: 2 or more owners of the business, they all equally and actively participate in the business as they share profit and losses
3. Limited Partnerships: Types of partnerships or organizations that limit the personal liability of some partners
4. C cooperation: When the owners or shareholders are taxed separately from the entity

Question 10

Sole Proprietorship examples

Answer 10

• Housekeeper
• Beauty Parlor
• Convenience store
• Photographer
• Daycare operator

Question 11

General Partnership examples

Answer 11

• Law Firms
• Medical Centers
• Architectural Firms

Question 12

LPC Business examples:

Answer 12

• Cafe
• Bakery
• Restaurant

Question 13

Why do businesses need business objectives?

Answer 13

Obectives align the efforts of all employees towards a common vision and ensure that everyone is working towards the same goal
All entrepreneurs have a mix of financial and non-financial objectives when starting a business

Question 14

What are some Financial and non-financial objectives when starting a business?

Answer 14

Financial Objectives:
- Survival
- Sales
- Profit
- Market Share
- Financial security
Non Financial security:
- Social entreprenuership
- Personal Satisfaction
- Challenge