Class 1: Business

Question 1

What is a business?

Answer 1

A business is any activities that provide products and services for customers for the purpose of making profit

Question 2

What is the difference between a product and a service?

Answer 2

A product is tangible while services are intangible

Question 3

What are the 3 ways to categorize a business?

Answer 3

Size, Profit-motive, and sector

Question 4

What are the types of business according to size?

Answer 4

Microenterprises, small and medium enterprises, and large enterprises

Question 5

What are the types of business according to profit-motive?

Answer 5

For-profit organizations and Non-profit organizations

Question 6

What are the types of business according to sector?

Answer 6

Manufacturing sector and service sector

Question 7

What are the differences between the businesses categorized by size?

Answer 7

Microenterprises usually have 5 to 10 workers
Small enterprises usually have about 50 or less workers
Medium enterprises have 51 to 500 workers
Large enterprises have 500 and above workers

Question 8

What is the difference between the businesses categorized by profit-motive?

Answer 8

For-profit organizations base their activities purely on the need to gain profit by attending to the needs and wants of its customers
Non-profit organizations are not profit oriented although they may make very little in general, they desire to positively impact society through charities and social services

Question 9

What is the difference between the businesses categorized by sector?

Answer 9

Manufacturing business provide its customers with tangible products.
Service business provide its customers with intangible products.

Question 10

What are some of the characteristics of business?

Answer 10

Profit gain ( excluding non-profit businesses)
Risk taking
Continuity
Provision of goods or services for money
Satisfaction of customers need and wants

Question 11

What are some of the objectives of a Business?

Answer 11

Survival
Growth
Profit-making
Employee welfare
Customer service
Innovation

Question 12

What are the 4 resources used in business?

Answer 12

Capital
Human Resources
Natural Resources
Entrepreneurship

Question 13

What are stakeholders?

Answer 13

These are individuals who stand to gain or lose from the activities of the business

Question 14

List some examples of Stakeholders in business

Answer 14

Employees
Creditors
Shareholders/Business owners
Suppliers
Customers
Government

Question 15

What are some of the advantages of running a business?

Answer 15

Independence
Financial rewards
learning opportunities
Lifestyle
Personal satisfaction

Question 16

What are some of the disadvantages of running a business?

Answer 16

Stress
Financial risk
Time commitment
Undesirable duties