Role of business: Business functions

Question 1

Define business

Answer 1

A business can be defined as the organized effort of individuals to produce and sell for a profit, the products that satisfy individuals wants and needs.

Question 2

Define production

Answer 2

Refers to those activities undertaken by the

business that combine the resources to create products that satisfy customers’ needs and wants.

Question 3

Define Management

Answer 3

A more contemporary definition of management views management as the process of working with and through other people to achieve business goals in a changing environment. Crucial to this process is the effective and efficient use of limited resources.

Question 4

Define Marketing

Answer 4

Is a system of interactive activities designed to plan, promote, price and distribute products to present to potential costumers.

Question 5

Production control

Answer 5

Production control is the function of management which manages, directs and controls the supply and process of activities and materials of an enterprise. Production control is carried out in a way that insures labor and capitol are used in the most efficient way possible.

Question 6

Sales forecast

Answer 6

Sales forecasting, is estimating how much of a product will be sold in a specific time period and market and how much the product will be sold for.

Question 7

Planning finances

Answer 7

Planning finances, requires businesses to plan and determine how much money it will spend to reach their strategic/long term business goals. Financial planning allows for business to be able to adapt to changing circumstances both on a personal and business level.

Question 8

Distribution of goods and services

Answer 8

The distribution of goods and services requires both the selling and the delivering of products and services from manufactures to customers

Question 9

Human resources

Answer 9

Human resources are people (workers/employees) who make up the business/organization.

Question 10

Natural resources

Answer 10

Natural resources are resources that have been created naturally without human disturbance, but are used by humans and enterprises for commercial and industrial use.

Question 11

Capitol resources

Answer 11

Capitol resources are goods that have been made to be used by people. For example machinery and tools.