understanding business

Question 1

what is the role of business in society?

Answer 1

a business is an organization that makes, buys or sells goods or provides a service.

Question 2

what are businesses activity?

Answer 2

business activity is providing goods or services to give people what they want and need.
what’s are thing that we would like to have but we do not really need.
needs are things that we cannot live without

Question 3

what is a need?

Answer 3

needs are things like shelter, food, clothes, water and warmth

Question 4

what is a want?

Answer 4

wants are things we don’t need to survive but are good
these are things likes leisure, fashion, technology and luxury items

Question 5

goods and services for businesses?

Answer 5

for a business to survive, it needs to satisfy the needs and wants of the consumer. a business can satisfy need and wants by providing goods and services to the consumer.

Question 6

what is a good?

Answer 6

a good is a product that you can see and touch - tangible
laptops , clothes and food

Question 7

what is a service?

Answer 7

product that you can’t hold or touch -
intangible - things like public transport, haircuts and a visit to the cinema

Question 8

what is the meaning of durable and non durable

Answer 8

goods and services can be :
durable and long lasting
or
non durable and used up quickly!

Question 9

why do businesses exist?

Answer 9

they exist to try and satisfy out wants
they use the factors of production to make products to provide services which satisfy these wants

Question 10

what are factors of production?

Answer 10

CELL !
land - the natural resources used
labor - the human effort and skill needed to produce the product/ service
capital - the money needed to start up and run a business
enterprise - the person who comes up with the idea and makes it happen

Question 11

what is an entrepreneur?

Answer 11

a person who brings together the 4 factors of production!

Question 12

what are the sectors of industry?

Answer 12

primary (takes) - the sector that deals with extraction of raw materials or natural land resources
secondary (makes) - sector is concerned with manufacturing
tertiary (serves) - sectors that provides a service

Question 13

purpose of a business plan?

Answer 13

to present objectives of the business
to reduce the risk of the business idea failing as the thine had been taken to carry out market research
to present to the bank when applying for a loan

Question 14

what is the content of a business plan?

Answer 14

general details
business name
owners and type of ownership
proposed location
objectives

Question 15

benefits of good customer service?

Answer 15

customer loyalty
improved reputation
and employee satisfaction

Question 16

consequences of poor customer service?

Answer 16

decrease in profits
bad reputation
lord or market share
loss of competitive edge
low staff morale

Question 17

how to maximizing customer satisfaction?

Answer 17

market research
staff training
after sales service
customer care strategy
customer complaints procedure
quality products
measuring customer satisfaction

Question 18

how can use of technology improve customer service?

Answer 18

up to date website
call back
offering live chat support on the business website
tracking system for delivery of products

Question 19

what are the sectors of economy?

Answer 19

private - aim to make a profit
organizations like : sole traders, partnerships and limited companies

public - ran by government and provide a service for population and communities
money for these are raised through taxes

third sector - NOT about making a profit but making a difference to society

Question 20

what are the business objectives?

Answer 20

1 - survival
2 - growth
3 - profit maximization
4 - sales maximization
5 - provision of a service
6 - social responsibility
7 - managerial objectives

Question 21

what is a stakeholder?

Answer 21

person or group who are interested in and can influence an organization.

for example - owners of shareholders

Question 22

functional areas - marketing function

Answer 22

responsible for…
identifying market segments
market research
decision making based on marketing mix of a product, price, place or promotion

Question 23

functional areas - human resources

Answer 23

responsible for…
recruitment and selection
motivation and retention
training a development
complying with employment law

Question 24

functional areas - operation activities

Answer 24

responsible for…
production processes
quality
how products are sold
complying with consumer law
location
working with suppliers

Question 25

functional areas - finance

Answer 25

responsible for…
identifying suitable source of finance
monitoring revenue, cost , profit
calculating the break even point
cash and cash flow
calculating average rate of return
advice on investments

Question 26

what are external factors?

Answer 26

PESTEC
political
economic
social
technological
environmental
and competitive factors

these are all things that impact the business that is out with the businesses control

Question 27

what are internal factors?

Answer 27

human resources - staff
finance
technology

these are factors which a business is in control of.