Unit 1: Business Activities And The Economy pg 1-5

Question 1

Definite the term “Business.”

Answer 1

Definition of "Business"
#Business is a general term that describes all ACTIVITIES and INSTITUTIONS that PRODUCE GOODS or PROVIDE SERVICES to SATISFY THE NEEDS OF OUR SOCIETY and are essential in our daily lives.

Question 2

Explain the objective of business. : For the Owner

Answer 2

1. For the Owner (profit making motive) 
#To provide him with profit and personal satisfaction.
2. For the Employee
#To provide him with an income.
3. For Society
#Satisfy the wants and needs of people.
#Maximize the satisfaction of society.

Question 3

Define the factors of production.

Land

Answer 3

1. Land/Materials
#Natural resources/tangible inputs used in the production process.

Question 4

Define the factors of production.

Labour

Answer 4

2. Labour
#Physical and mental input of people who work for the business to produce goods and services.
#Includes people involved in the distribution activities and professional services.

Question 5

Define the factors of production.

Capital

Answer 5

3. Capital
   #The funds necessary to finance the operation of a business.
   These funds may be
   @investments by the owners or shareholders,
   @a loan from a bank or
   @retained profits.

Question 6

Define the factors of production.

Entrepreneurship

Answer 6

4. Entrepreneurship
#The risk-taking by the owner to operate the business.
#Entrepreneur organizes land/materials, labour, capital to provide the goods or services.

Question 7

Explain the factors of production/economic resources used by businesses to generate outputs.
Land

Answer 7

A) Land ☺

Examples:
[Natural state: land for agricultural use or mineral deposits to be extracted.]
{Industrial context, materials: raw materials, tools and common parts or semi-finished goods used directly in the manufacturing process.}

Question 8

Explain the factors of production/economic resources used by businesses to generate outputs.
Labour

Answer 8

B) Labour
#Actual production of goods.
#Distribution activities and professional services.
Examples of labour are the production supervisors, salesmen or office clerks, factory workers, teachers.

Question 9

Explain the factors of production/economic resources used by businesses to generate outputs.
Capital

Answer 9

C) Capital
#The money is used to buy
@raw materials
@pay the workers
@install new machinery
@build an extension of the factor.

Question 10

Explain the factors of production/economic resources used by businesses to generate outputs.
Entrepreneurship

Answer 10

D) Entrepreneurship
#He profits; products are in demand. Money he receives exceeds his expenses.
#He incurs as loss; OTHERWISE, a risk inherent in all business ventures.

Question 11

Explain briefly the relationship between business and others.
1

Answer 11

1. Workers/Employees
#Information about business's financial situation
#Future careers and salaries.
#Need training. To perform job efficiently.
#Minimize accidents and health hazards.
#Observe industrial health and safety laws. Free fr unnecessary hazards.
#Regular consultation with MOM abt workplace safety.
#Complying with the act. (Workplace Safety and Health Act)

Question 12

Explain briefly the relationship between business and others.
2

Answer 12

2. Worker Unions/Trade Union.
   E biz shld wrk twrds mr coop rls btwn labour and management as a good working relationship will lead to decreased resistance to change, conflict, turnover, and absenteeism, increased morale, innovation, productivity, and product quality, reduced job insecurity and a favourable corporate reputation.

Question 13

Explain briefly the relationship between business and others.
3

Answer 13

3. Suppliers
They want to know about the business's ability to pay its debts as well as types of goods and/or services that the business would purchase.
#pay its debt
#g&s that the business would purchase.

Question 14

Explain briefly the relationship between business and others.
4

Answer 14

4. Customers
   They need to know that the business is able to offer them a secure source of supply that will meet their needs. As the needs of customers change, the business would need to adapt to this changes.

Question 15

Explain briefly the relationship between business and others.
5

Answer 15

5. Government/Economy
   The business enterprise produces goods and provides services using the various factors of production available in society. The business enterprises thus contribute to the nation’s economic growth. A business enterprise co-exists and is interrelated with other members in the economic system. Therefore, there is a close relationship between business and the economy.

Question 16

Explain briefly the relationship between business and others.
6

Answer 16

6. Welfare Organisations
   Welfare Organisations can be an opportunity for businesses to exhibit their involvement in social responsibility. Businesses can participate in financial contributions to there welfare orgsnisations or through volunteerism and provision of professional services.

Question 17

Welfare Organisations

Example

Answer 17

Example, businesses can sponsor gifts in kind, offer scholarships and bursaries and provide free auditing services to the welfare organisations like Club Rainbow and Singapore Children’s Society.

Question 18

Super long workers/employees. Part A

Answer 18

Workers are interested in information about the business’s financial situation because their future careers and salaries depend on it. Workers also need training so that they can perform on the job effectively. At the same time, workers also need to be aware of potential hazards at work (exposed electrical wires, using equipment only according to the manufacturer’s manual, etc.) and take steps to minimize accidents and occupational health hazards like radiation and noise.

Question 19

Super long workers or employees Part B

Answer 19

At the same time, employers need to observe industrial health and safety laws to ensure that the workplace is free from unnecessary hazards. This involves regular consultation with the Ministry or Manpower pertaining to workplace safety and health and complying with the various provisions of the Workplace Safety and Health Act.

Question 20

Etc?

Answer 20

A. Workers may suffer a pay cut or have no pay increasement for that year.
B. workers may be retrenched.
C. Less training to attend for work or self improvement
D. Workers’ morale is low and feels insecure about their jobs.