Business Basics
What is a business?
An organisation that provides goods or services.
What is a good?
A physical product that can be touched.
What does scarcity mean?
Resources are limited, but wants are unlimited.
What is a business objective?
A goal a business wants to achieve.
What does S in SMART stand for?
Specific
What do businesses provide to customers?
Goods and/or services.
What is a service?
An activity provided for a customer.
You have GH₵20 but want three things costing GH₵10 each. What problem do you face?
Scarcity / limited money.
Which objective means making money: profit or survival
Profit.
What does M in SMART stand for?
Measurable
Who buys goods and services from businesses?
Customers.
Is a haircut a good or a service?
A service.
What is an entrepreneur?
Someone who starts or runs a business and takes risks.
A new business wants to stay open and avoid closing. What is its objective?
Survival.
Which is more specific: "Increase sales" or "Increase sales by 10%"?
Increase sales by 10%.
A shop sells shoes. Is it providing a good or a service?
A good.
Food, water and shelter are examples of what?
Needs
A business wants to increase sales from 1,000 to 1,500 units. What objective is this?
Sales growth / increasing sales
Increase sales by 10% by December." Why is this better than "Increase sales"?
It is specific, measurable and has a time limit.
A person starts a small shop selling food. What are they?
An entrepreneur.
A hairdresser cuts your hair. Is this a good or a service?
Service
You already have a working phone but want the newest model. Need or Want?
Want
What type of enterprise aims to make a social difference while generating income?
Social enterprise.
Why might a new business have different objectives from a large, successful business?
A new business may focus on survival; an established business may focus on profit/growth.
Give ONE reason why a business might need to change its objectives
Competition, customer tastes, economy, technology, costs, etc.