Fundamentals of Business Flashcards
How does accounting supports businesses?
Accounting supports the role of business in society by:
* Maintaining accurate financial records
* Auditing financial statements
* Measuring financial performance
* Advising on strategies to improve profitability
Accounting is essential for transparency and effective decision-making in business.
What do we call the individuals who establish and develop new businesses?
Entrepreneurs
Entrepreneurs are key drivers of innovation and economic growth.
Why do we have businesses?
Businesses:
* provide goods and services to meet consumer needs
* provide employment and training opportunities
* contribute to government economic and social priorities
* pay taxes for infrastructure and social welfare
* enhance economic security against foreign competition
Businesses play a crucial role in the economy and social structure.
What is a good business environment characterized by?
A good business environment is characterized by:
* many buyers and sellers
* similar products offered
* limited government intervention
* private ownership of the factors of production
These characteristics foster competition and innovation.
What is an entrepreneur?
An entrepreneur is a person who sets up a business, taking on financial risks in the hope of profit.
Entrepreneurs identify market gaps and create innovative solutions.
What are the factors of production?
The factors of production include:
* Labour – the workforce needed
* Capital – investment for materials and overheads
* Raw materials (land) – elements necessary for production
* Entrepreneurship – vision, resourcefulness, and risk-taking to establish a business
Understanding these factors is crucial for business success.
Fill in the blank: A business is likely to be successful if it can meet the needs of its customers in terms of _______ and quality.
cost
Meeting customer expectations is vital for profitability.
What is the outcome if a business meets consumer needs effectively?
It is likely to be successful, usually expressed in terms of making a profit.
Profitability is a key indicator of business health.
True or False: Businesses contribute to government priorities by paying taxes.
True
Taxes from businesses help fund public services.
What interrelationship exists among manufacturers, wholesalers, and retailers?
The interrelationship includes:
* production (manufacturing products)
* bulk purchasing from manufacturers (wholesalers)
* dividing into smaller quantities for sale to end consumers (retailers)
This collaboration enhances efficiency in the supply chain.
What do successful entrepreneurs need to find?
The right idea in the right place at the right time.
Timing and market fit are crucial for entrepreneurial success.
List three skills or traits of an entrepreneur.
- Vision
- Risk-taking
- Resourcefulness
These traits help entrepreneurs navigate challenges and seize opportunities.
What is the initial step most businesses take?
They begin as a small enterprise run by individuals or groups with a business idea.
Starting small allows for testing ideas before scaling.
