Purposes, sectors and scope Flashcards
What are the two main purposes of businesses?
Businesses primarily exist for the supply of products or services. They can be either for-profit or not-for-profit.
What distinguishes for-profit businesses from not-for-profit ones?
For-profit businesses aim to generate profit, while not-for-profit businesses focus on fulfilling a mission or providing a service without the primary goal of profit.
What are the four sectors of business activities?
The sectors are primary, secondary, tertiary, and quaternary.
In what sector do businesses extract or cultivate raw materials?
Primary sector businesses are involved in the extraction or cultivation of raw materials.
What is the scope of business activities in a local context?
Local business activities are confined to a specific geographical area.
What defines national business activities?
National business activities operate within the borders of a single country.
What is the key characteristic of international business activities?
International business activities involve operations and transactions across national borders.
Name some functional or operational areas within a business.
Functional areas include human resources, research and development, sales, marketing, purchasing, production and quality, finance, customer service, IT, administration, security, distribution, and logistics.
What are some reasons for business success?
Business success can be attributed to strong customer service, a clear vision, innovative products or processes, and the ability to meet customer needs.
What are the different forms of enterprise businesses?
Enterprise business forms include start-ups, lifestyle businesses, social enterprises, and franchises.
