Chap 1-Part 1

Question 1

What is the definition of Business

Answer 1

Business is any activity that provides good and services for the purpose to gain profit

Question 2

What is a profit

Answer 2

A profit is earned when a companys revenue is greater than its expenses+it is the driving force behind the growth of a business

Question 3

What are a companys revenue and expenses

Answer 3

• Revenue: the total amount of money received from good and services provided
• Expences: Cost inccured to produce and sell the goods or services offered by a business

Question 4

How does business benefit society

Answer 4

Succesful businesses help to raise a country standard of living and improve the quality of life

Question 5

Definitions of standard of living and quality of life

Answer 5

• Standart of living: The level of comfort, material, goods and necessities available to a country’s people
• Quality of life: Subjective and intangible measure that takes into account not only a country’s material standard of living but also more intangible aspects that make up human life

Question 6

Do all businesses operate to create a profit

Answer 6

• For-profit businesses: entitles to offer products to their customers to earn profit
• Non-profit organisation: businesses that do not seek for profit but seek to serve the community trought social educational and political means

Question 7

What are the business sectors

Answer 7

• Public business sector: includes good and services allocated by the governement and public sector ex health school board…
• Private business sector: includes good and services by private individuals or groups as a mean of entreprise for profit
• Non-profit volontary sector: non gouvernemental non-profit organization that receive support from individuals, businesses and gouvernement