CH 1.1 Introduction to Business Management

Question 1

Consumer Goods:

Answer 1

The physical and tangible goods sold to the general public. They include cars and washing machines, which are referred to as durable consumer goods. Non-durable consumer goods include food, drinks, and sweets that can only be used once.

Question 2

Consumer Services:

Answer 2

Non-tangible products that are sold to the general public and include hotel accommodation, insurance services and train journeys

Question 3

Capital Goods:

Answer 3

Physical goods that are used by industry to aid in the production of other goods and services such as machines and commercial vehicles

Question 4

Primary Sector Business Activity:

Answer 4

Firms engaged in farming, fishing, oil extraction and all other industries that extract natural resources so that they can be used and processed by other firms

Question 5

Secondary Sector Business Activity:

Answer 5

Firms that manufacture and process products from natural resources, including computers, brewing, baking, clothing and construction

Question 6

Tertiary Sector Business Activity:

Answer 6

Firms that provide services to consumers and other businesses such as retailing, transport, insurance, banking, hotels, tourism, and telecommunications.

Question 7

Quaternary Sector Business Activity:

Answer 7

Is focused on Information technology (IT) businesses and information service providers such as research and development, business consulting and information gathering.

Question 8

Entrepreneur:

Answer 8

Someone who take the financial risk of starting and managing a new venture

Question 9

Intrapreneur:

Answer 9

Someone within a large corporation who takes direct responsibility for turning an idea into a profitable finished product through using ‘entrepreneurial talents’ such as risk-taking and innovation.

Question 10

Business Plan:

Answer 10

A written document that describes a business, its objectives and its strategies, the market it is in and its financial forecasts.