Business Studies

Question 1

Advantages of business objectives

Answer 1

• Easier Decision Making
• Less Conflicts
• Incrceases Motivation
  -Unites the business

Question 2

What are some objectives of a business?

Answer 2

-Survival
-Profit
-Growth
-Market Share
-Service to the society

Question 3

What are stakeholders

Answer 3

A stakeholder is any person or group that is interested in or
directly affected by the performance or activities of a
business

Question 4

What are the internal stakeholders of a business?

Answer 4

• Owners
• Workers
• Managers

Question 5

What are the external stakeholders of a business

Answer 5

• Banks
  -Government
  -Costumers
  -Community

Question 6

What is an entrepreneur

Answer 6

A person who starts a business , bearing all the risks and enjoying most of the rewards.

Question 7

What are the characteristics of entrepreneurs

Answer 7

• Risk Taker
• Leadership
• Creativity
• Innovative
• Hard Working
• Effective Communicator
  -Optimistic
  -

Question 8

What are the characteristics of entrepreneurs

Answer 8

• Risk Taker
• Leadership
• Creativity
• Innovative
• Hard Working
• Effective Communicator
  -Optimistic
• Independent

Question 9

Whats a business plan

Answer 9

A document containing all the business information , infrastructure, financial information and operations.

Question 10

Why do governments want to help new starters

Answer 10

• Because it provides more jobs for the country
• increases the economy of the country
• Could involve in country exports if business works well

Question 11

How do governments support entrepreneurs

Answer 11

• Bank loan at low interest rates
• Less Taxes
• Give grants for training
  -Give Grants for capital

Question 12

How do you measure a business size

Answer 12

Number of Output
Number of Employees
Value of Capital
Value of sales

Question 13

What are the 2 types of business growth?

Answer 13

Internal Growth
External Growth

Question 14

What are the types of external growth and explain them

Answer 14

• Horizontal Integration : When 2 businesses in the same industry and same stage of production merges together.
• Vertical Integration Forward : When a business in the same industry takes over or merges with a stage of production ahead of the “predator” firm.
• Backward Vertical Integration : When a business in the same industry merges with another business with a stage of production behind the “predator” firm.
• Conglomerate Integration : When 2 businesses of completely different industries merge together.

Question 15

What are the advantages of horizontal integration

Answer 15

• It reduces the number of competitors
• The market share is increased
• Increased opportunities for enconomies of scale

Question 16

What are the advantages of forward vertical integration

Answer 16

• Assured outlet for product
• Profit Margin of retail is absorbed by the expanded business
• Can prevent retailer from selling competitor products

Question 17

What are advantages of the backward vertical integration

Answer 17

• Assured supply of raw materials
• Profit margin of supplier is not absorbed by the expanded business
  -Can prevent supplier from selling materials to competitors.

Question 18

Disadvantages of growth

Answer 18

• Lack of expertise
• Lack of funds
• Difficult to control staff
• Diseconomies of scale

Question 19

Why do some businesses stay small

Answer 19

-Owner Objectives
-Type of Industry
-Market Size

Question 20

Why do businesses fail?

Answer 20

• Poor managment
• Poor financial management
• Over Expansion
• Failure to plan for change