Unit 1.1 - What is a business?

Question 1

what is a business?

Answer 1

an organization involved in the process of using inputs to produce goods or services

Question 2

give an example of a business

Answer 2

a government. (they’re organizations involved in the process of using inputs to produce goods or services

Question 3

what are the 4 factors of production?

Answer 3

1. functions that allow production to take place
2. produce an output (good or service)
3. output is consumed by customers
4. will be affected by external factors (competitors)

Question 4

what are the 4 inputs for the factors of production?

Answer 4

land, labor, capital, enterprise

Question 5

what’s the difference between a good and a service?

Answer 5

a good is tangible, a service is not

Question 6

what are 3 examples of a single-use item?

Answer 6

a chocolate bar, a banana, a ziploc bag

Question 7

what are 3 examples of a durable use item?

Answer 7

a chair, a couch, clothing

Question 8

what is a function(department)?

Answer 8

a group of people who are doing the same type of job

Question 9

what happens in operations?

Answer 9

they produce the goods and services to sell to customers

Question 10

what happens in marketing?

Answer 10

they identify the needs and wants of customers and then promote it to the product to the public

Question 11

what happens in finance?

Answer 11

they manage the money

Question 12

what happens in human resources? (HR)

Answer 12

they manage the people within the business

Question 13

what are the 4 sectors of a business?

Answer 13

the primary, secondary, tertiary, and quaternary sectors

Question 14

what does the primary sector do?

Answer 14

extract raw materials

Question 15

what does the secondary sector do?

Answer 15

turn the raw materials into products

Question 16

what does the tertiary sector do?

Answer 16

provide services

Question 17

what does the quaternary sector do?

Answer 17

generate and share info, ICT, IT promote the product (marketing)

Question 18

what start a business? (GET CASH)

Answer 18

Growth
Earnings
Transference
Challenge
Autonomy
Security
Hobbies

Question 19

what are the steps to starting a business?

Answer 19

1. write a business plan
2. obtain a start-up captial
3. obtain business registration
4. open a business bank ACC
5. market/promote the business

Question 20

what is an entrepreneur?

Answer 20

an individual who plans, organizes and manages a business

Question 21

what is an intrepreneur?

Answer 21

an employee within a large company who acts like an entrepreneur for the benefit of the company

Question 22

what are some problems with starting a new business? list 3

Answer 22

• lack of finance
• cash flow problems
• marketing problems
• unestablished customer base
• people management problems
• high production costs
• poor location
• external shocks (things that happen accidentally)