Introduction to Business Management Flashcards
What is the primary purpose of a business?
To provide goods and services to meet customer needs.
True or False: A business can only be a for-profit organization.
False
Fill in the blank: A business is an organization that combines _____ and _____ to produce goods and services.
resources, labor
What are the four main types of businesses?
Sole proprietorships, partnerships, corporations, and cooperatives.
What is a sole proprietorship?
A business owned and operated by a single individual.
Which type of business involves two or more individuals sharing ownership?
Partnership
What is a corporation?
A legal entity separate from its owners, providing limited liability.
True or False: Cooperatives are businesses owned and operated for the benefit of their members.
True
What does ‘limited liability’ mean in the context of a corporation?
Owners are not personally responsible for the debts of the business.
What is the role of entrepreneurship in business?
To innovate and take risks to create and run new businesses.
Define ‘goods’ in the context of business.
Tangible products that can be sold to consumers.
Define ‘services’ in the context of business.
Intangible offerings that provide value to customers.
What is a business model?
A plan for how a business will generate revenue and make a profit.
True or False: All businesses must be registered with the government.
False
What is the significance of ‘market research’ for businesses?
To understand customer needs and market trends.
What is the difference between a non-profit and a for-profit business?
Non-profits operate to serve a social cause, while for-profits aim to generate profit.
Fill in the blank: A business’s _____ includes its goals, objectives, and strategies for success.
business plan
What is ‘stakeholder’ in a business context?
Any individual or group that has an interest in the success of a business.
What is the primary function of management within a business?
To plan, organize, lead, and control the organization’s resources.
What does ‘value creation’ refer to in business?
The process of providing products or services that customers find useful.
What is the role of marketing in a business?
To promote products or services and attract customers.
True or False: Businesses do not need to consider ethical practices.
False
What is a competitive advantage?
A unique advantage that allows a business to outperform its competitors.
What is ‘customer satisfaction’ and why is it important?
A measure of how products and services meet or exceed customer expectations; important for repeat business.
