Chapter 1.1 - Introduction To Business Management

Question 1

Business Plan

Answer 1

Refers to document that sets out the business idea, it’s goals and objectives and other details of how to business will operate (such as its marketing, operations and finance). It is often a crucial part of a net tempt to raise external sources of finance

Question 2

Businesses

Answer 2

Organizations involved in the production of goods and/or the provision of services

Question 3

Consumers

Answer 3

The people or organizations that actually use the products

Question 4

Customers

Answer 4

the people or organizations that buy the product

Question 5

Entrepreneurs

Answer 5

Owners or operators of an organization who manage, organize and plan the other three factors of production. They are risk takes who exploit business opportunities in return for profits

Question 6

Intrapreneurship

Answer 6

the act of behaving as an entrepreneur but as an employee within a large business organization. Intrapreneurs work in an entrepreneurial capacity, with authority to create innovative products or new processes for the organization

Question 7

Needs

Answer 7

The basic necessities that a person must have to survive (eg. Food, water, warmth, shelter and clothing)

Question 8

Primary Sector and example

Answer 8

Refers to businesses involved in the cultivation or extraction of natural resources, (eg. Farming, mining, quarrying, fishing, oil exploration and forestry)

Question 9

Product and examples

Answer 9

Can refer to both goods and services. Goods are physical products (eg., cars, books, food). Services are intangible products (eg., haircuts, bus rides, education and health care).

Question 10

Quaternary sector and example

Answer 10

Subcategory of tertiary sectors, where businesses are involved in intellectual, knowledge-based activities that generate and share information, (eg., information communications technology and research organizations, pharmaceutical companies)

Question 11

Secondary sector

Answer 11

Section of the economy where business activity is concerned with the CONSTRUCTION and MANUFACTURING of products

Question 12

Sectoral change

Answer 12

refers to a shift in the relative share of gross domestic product (or national output) and employment that is attributed to each business sector

Question 13

Tertiary sector

Answer 13

Refers to the section of the economy where business activity is concerned with the provision of services to customers

Question 14

Wants

Answer 14

People’s desires, the things they would like to have. (Eg., a larger home, new smartphone or to go on an overseas holiday)