Lesson 1- What is business activity

Question 1

Define a business

Answer 1

A business refers to a firm that engages in selling goods and providing services with the aim of making profit

Question 2

What are four common features of a business?

Answer 2

1.Selling goods and services
2. Using up of resources
3. External influences
4. Profit

Question 3

Define consumer goods

Answer 3

Goods and services sold to consumers

Question 4

Define producer goods

Answer 4

Goods and services produced for another business

Question 5

Define needs

Answer 5

Needs can b defined as the basic requirements of survival .Limited

Question 6

Define wants

Answer 6

Can be defined as what people like to have and are unlimited.

Question 7

Define a stakholder

Answer 7

An individual or a group of people who are interested in the activities of a business. They are affected or are influenced by the activities of a business.

Question 8

Define internal stakeholders

Answer 8

People within the organization who are interested in the activities of a business.

Question 9

Examples of internal stakeholders

Answer 9

Employees, managers, owners

Question 10

Define external stakeholders

Answer 10

People or groups who are outside the organization interested on the activities of a business.

Question 11

Examples of external shareholders

Answer 11

Government, pressure groups, customers, competitors, banks, suppliers, creditors