Chapter 1

Question 1

what is success in business derived from?

Answer 1

adding value and finding and filling a need

Question 2

what are examples of goods?

Answer 2

(anything that you can hold)
manufacturing
construction
utilities
agriculture
forestry
fishing
mining
quarrying
oil and gas

Question 3

what are examples of service industries?

Answer 3

(products that cannot be held in your hands)
education
health care
insurance

Question 4

what is a business?

Answer 4

any activity that seeks to provide goods and services to others while operating at a profit

Question 5

what is a profit?

Answer 5

the amount of money a business earns above and beyond what is spent on salaries and other operating expenses

Question 6

what is an entrepreneur?

Answer 6

a person who risks time and money to start and manage a business

Question 7

what is risk?

Answer 7

the chance an entrepreneur takes of losing time and money on a business that may not prove profitable

Question 8

what is offshoring?

Answer 8

sourcing part of the purchased inputs outside of the country

Question 9

what is outsourcing?

Answer 9

contracting with other companies to do some or all of the functions of a firm

Question 10

what is insourcing?

Answer 10

a company has functions that could be outsourced but use their own company to complete that function

Question 11

what are shareholders?

Answer 11

someone who buys and owns shares and get profits from dividends

Question 12

what are bankers?

Answer 12

works with the banks giving out loans

Question 13

what are customers?

Answer 13

someone who benefits from the services the business provides

Question 14

what is the surrounding community?

Answer 14

people who will be effected by the business being in their community

Question 15

what are environmentalists?

Answer 15

someone who makes sure the company is following environmental rules

Question 16

what are retailers/dealers?

Answer 16

a store who stocks the businesses products

Question 17

how do government leaders effect a business?

Answer 17

they set regulations, policies and increase or decrease taxes

Question 18

what are suppliers?

Answer 18

someone who provides the goods or services to the retailers to provide to the customers

Question 19

how does media effect businesses?

Answer 19

they leak scandals and provide information to the customers

Question 20

what is a non profit organization?

Answer 20

an organization whose goals do not include making a personal profit for Its owners

Question 21

what is a social entrepreneur?

Answer 21

someone who uses business principles to start and manage non-profit organizations

Question 22

name the five factors of production?

Answer 22

land
labour
capital
entrepreneurship
knowlage

Question 23

what is the internal environment in a business?

Answer 23

the factors present within the organization to influence the companies decisions and operations

Question 24

what is the external environment in a business?

Answer 24

the forces outside the businesses control that may influence the decisions and operations

Question 25

how do legal regulations effect businesses?

Answer 25

gives them guidelines on how they must operate and to eliminate corruption

Question 26

name the five factors of the economic environment?

Answer 26

rates of saving and investment
tradable currency (money supply)
taxes and regulations
imports and exports
employment levels and productivity

Question 27

what is foreign exchange?

Answer 27

the movement of a country currency relative to other currencies also pertains to the economic environment

Question 28

name the six things that make up the technological environment?

Answer 28

information and technology
databases
QR codes
internet
wireless communication
social media marketing

Question 29

what does B2C stand for?

Answer 29

business to consumer

Question 30

what does business to consumer entail?

Answer 30

B2C is the regular business that companies do online with individual customers

Question 31

what does B2B stand for?

Answer 31

business to business

Question 32

what does business to business entail?

Answer 32

B2B is businesses doing business with other businesses

Question 33

what does B2G stand for?

Answer 33

business to government

Question 34

what does business to government entail?

Answer 34

B2G is the business that companies do with government agencies and departments to supply goods and services

Question 35

what does G2C stand for?

Answer 35

government to consumer

Question 36

what does government to consumer entail?

Answer 36

the business that the government does online with people (such as renewing licenses)

Question 37

what is a competitive environment?

Answer 37

it is how companies operate and interact within their markets and how their decisions might impact their business

Question 38

name four competitive strategies?

Answer 38

exceed customer expectations
deliver faster
restructuring and empowerment
concern for environment

Question 39

name seven factors in a social environment?

Answer 39

diversity
demographic changes
family composition and life expectancy
consumption habits
attitudes towards product innovations, lifestyles, occupational distribution and consumer preferences

educational system and literacy rates
values, traditions, social trends

Question 40

name four factors in the global environment?

Answer 40

international events
serving global markets
global trade competition
rapid change

Question 41

what are the 11 kinds of stake holders in business?

Answer 41

shareholders
bankers
customers
surrounding community
environmentalists
retailers
employees
government leaders
suppliers
media

Question 42

what are the 5 elements of the business environment?

Answer 42

legal environment
social environment
economic environment
competitive environment
technological environment