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Principles Of Business > Mid Term Exam > Flashcards

Mid Term Exam Flashcards

1
Q

5 Forms of Business

A

Sole trader
Partnership
Companies
Franchise
Cooperative

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2
Q

Type of economical system

A

Free market
Mixed economic
Planned economic

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3
Q

Who is an entrepreneur

A

A person who is willing to take the risk setting up their own business enterprise

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4
Q

Enterprise

A

A business that provides goods or services in exchange for money

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5
Q

Reasons for establishing a business

A

Increase income
Financial independence
Increase control in working life

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6
Q

Function of a entrepreneur

A

Planning
organizing
Accessing funds

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7
Q

What is collateral

A

Collateral is something valuable that you give to a lender as a guarantee when you borrow money

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8
Q

Types of collateral

A

Stocks
Property
Money
Moto vehicle

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9
Q

What is a contract

A

A contract is a legally binding agreement between two or more people enforced by law

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10
Q

Two types of contract

A

Simple and specialty contract

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11
Q

Simple contract

A

A agreement between two parties, which can be done verbally, written or done in an action

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12
Q

Specialty Contract

A

A deed or a contract under seal. It requires signing sealing and delivering

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13
Q

Method of discharge

A

By performance
By breach of a contract
By mutual agreement

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14
Q

Types of business documents

A

Delivery note
Credit note
Debit note
Purchasing order

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15
Q

How can a business grow internally

A

When a company uses its own tools and resources to expand.
Launching new products

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16
Q

How can a business grow externally

A

When two or more businesses join together as one business

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17
Q

Factors of production

A

Land -natural resources
Labor -human resources
Capital -man made resources
Enterprise/ entrepreneur

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18
Q

What is barter

A

The exchange of goods or services without the use of money

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19
Q

Characteristics of money

A

Acceptability
Durability
Portability

20
Q

Functions of money

A

Medium of exchange
Store of value
Unit of account

21
Q

Employer

A

A person who hires and pays employees

22
Q

Three types of stakeholders

A

Consumers
Employees
Government

23
Q

What is profit

A

Profit is the money left over after all expenses have been paid

24
Q

Employee

A

A person who works for a employer

25
Q

What is a stake holder

A

A person who has interest or concern in a business

26
Q

What is feasibility study

A

Is an analysis to determine whether a proposed project is possible and makes sense to pursue

27
Q

Characteristics of a good leader

A

Flexibility
Honesty
Focus
Truth worthiness

28
Q

Leadership styles

A

Democratic leaders
Autocratic leaders

29
Q

Problems faced by a entrepreneur

A

Financing
Lack of planning
Making decisions

30
Q

How does entrepreneur contribute to the country

A

Creating new business
Developing new products

31
Q

What is a business plan

A

A formal written document setting out the objectives of a business

32
Q

Importances of feasibility studies

A

Reduce risks
Increase the chance of success

33
Q

What is production

A

Production is the process of manufacturing goods and products from raw materials or components

34
Q

What is marketing

A

the process of promoting and selling products or services to customers.

35
Q

Characteristics of cottage industry

A

Homes based
Use local raw materials
Use family member as labour

36
Q

What is a multinational company

A

a company that has business operations in at least one country other than its home country

37
Q

Function of management

A

Planning
Organizing
Controlling
Directing
Motivating

38
Q

Characteristics of an entrepreneur

A

Creative
Flexible

39
Q

What is insurance

A

An agreement between an insurance company that gives you financial protection from losses that can occur during normal business operations

40
Q

Principles of insurance

A

Pooling of risks
Indemnity
Utmost good faith
Contribution

41
Q

Two types of insurance

A

Life insurance
Non life insurance

42
Q

What is productivity

A

Productivity is a measure of how efficiently a business is using all its resources

43
Q

Differentiate between production and productivity

A

Production is the act of creating or manufacturing something while Productivity is a measure of how efficiently a business is using all its resources

44
Q

What are the three levels of production

A

Subsistence
Domestic
Surplus

45
Q

What is market

A

A market is any situation made up of a group of individuals who interact in the process of buying and sell goods and services

46
Q

What is entrepreneurship

A

The skill in starting a new business especially when this involves seeing new opportunities

Principles Of Business (1 decks)

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