Nature of Business
To satisfy customer needs and wants
What is the primary purpose of business activity
Land, Labor, Capital, and Enterprise
What are the four factors of production?
A person who starts and runs their own business
Who is an intrapreneur?
Good management, innovation, strong cash flow, etc.
Name one reason businesses succeed.
A document outlining a business’s goals, strategies, and financials.
What is a business plan?
Production, distribution, and consumption of goods and services
What is meant by economic activity
Enterprise
Which factor of production organizes the others
An employee who innovates and takes initiative within an organization.
Who is an intrapreneur?
Poor cash flow, lack of planning, weak leadership, etc
Name one reason businesses fail.
Helps secure funding and provides direction.
Why is a business plan important?
It constantly changes due to technology, economy, competition, etc
What does a dynamic business environment mean
Increasing worth by enhancing a product/service beyond the cost of inputs
What does it mean when a business is “adding value
Taking risks & organizing resources.
What are two key roles of entrepreneurs?
Which is more common in early years—success or failure?
Failure (many startups fail in the first 5 years).
It may be inaccurate or inflexible as markets change
What is one limitation of a business plan?
The benefit of the next best alternative given up when making a decision.
What is opportunity cost
Branding, packaging, or providing better service.
Give an example of adding value.
Both innovate; entrepreneurs own businesses, intrapreneurs work within one.
Give one similarity and one difference between entrepreneurs and intrapreneurs.
It differentiates the business and attracts customers.
Why does innovation often lead to success?
By identifying potential problems and strategies in advance.
How does a business plan reduce risk?
It helps entrepreneurs allocate resources more efficiently
Why is opportunity cost important in business decisions?
Why is adding value important?
It allows businesses to charge higher prices and improve profit margins.
Creating jobs, innovating, or generating tax revenue.
Name one way entrepreneurs contribute to an economy.
Mismanaging cash flow leads to insolvency and business failure.
Why is financial management critical to survival?
Why should a business plan be updated regularly?
To reflect changes in the dynamic business environment.