Chapter 1 Introduction to Business Activities

Question 1

What is a business?

Answer 1

A business can be set up by an individual or a group of people.
To meet the needs and wants of customers.

Question 2

How can business add value to the community?

Answer 2

1. Providing goods & services to the people
2. Contribute to the wealth of the country
3. Provide jobs for the people.

Question 3

What are the types of businesses?

Answer 3

1. Goods producing
   Goods Producing can be seen and touched.
   Goods are produced with the use of machines and or labour

2.Servicing
Provides services that cannot be seen or touched but can be experienced.
Services are performed when sellers interact with customers.

Question 4

Give me 3 examples of a goods producing service business

Answer 4

1. Manufacturing 
Example: Creative Technology Ltd
2. Building & Construction
Example: Koh Brothers Group Ltd
3.Agriculture
Example: Oh' Farms

Question 5

Give me 3 examples of only service business.

Answer 5

1. Retailing
Example: Tangs
2. Education
Example: ITE 
3. Travel & Tourism
Example: Wild life Reserves Singapore Group

Question 6

What are the 4 resources for Business Activities?

Answer 6

1. Capital
   Capital refers to the money needed to start a business. It also refers to buildings,equipment and machinery which are used to produce goods and services.
2. Land
   Land refers to the land site itself as well as natural resources such as the sea, forests, minerals and petroleum.
3. Labour
   Labour refers to the efforts of the people involved in the production of goods and services. Example are: tourist guides,chefs, engineers.
4. Enterprise
   Enterprise refers to the use of business resources to produce goods and services and earn profits.

The person who owns an enterprise business is the entrepreneur.

Question 7

What is direct competition?

Answer 7

Direct competition is when a business sells the same or similar goods and services with another. Example: Bossini & Giordano as they both are sellers of casual wear

Question 8

What is indirect competition?

Answer 8

Indirect competition is when two businesses sell goods and services that satisfy the same needs and wants of the customer. Example: Timezone & The rink are indirect competitors as both satisfy customers’ wants for entertainment.