Unit 1.1 What is a business?

Question 1

Entrepreneur

Answer 1

Someone who takes the financial risk of starting and managing a new venture

Question 2

What are the main inputs of business?

Answer 2

Land, Labour, Capital, Enterprise

Question 3

Consumer goods

Answer 3

The physical and tangible goods sold to final users; these include cars, food and clothing

Question 4

Consumer services

Answer 4

Non-tangible products that are sold to final users; these include hotel accommodation, insurance services and train journeys

Question 5

Capital goods

Answer 5

Physical goods that are used by industry to aid in the production of other goods and services such as machines and commercial vehicles

Question 6

What are the 4 business functions?

Answer 6

Human resource management, finance and accounts, marketing and operations management

Question 7

Primary sector business activity

Answer 7

Businesses engaged in farming, fishing oil extraction and all other industries that extract natural resources to be used and processed by other firms

Question 8

Secondary sector business activity

Answer 8

Businesses that manifacture and process products from natural resources, including furniture, brewing, baking, clothing and construction

Question 9

Tertiary sector business activity

Answer 9

Businesses that provide services to consumers and other businesses, such as retailing, transport, insurance, banking, hotels, tourism and telecommunications

Question 10

Quarternary sector business activity

Answer 10

This focuses on information technology (IT) businesses and information service providers such as research and development, business consulting and information gathering

Question 11

Business plan

Answer 11

A written document that describes a business, its objectives and its strategies, the market it is in and its financial forecasts