Business Basics
What is the primary goal of a business?
To generate profit for the owners.
Name a type of business owned by one person.
Sole proprietorship.
What is marketing?
Marketing involves promoting and selling products or services to meet customer needs.
What is profit maximization?
Profit maximization is the objective of increasing the company’s earnings to the highest possible level.
What is globalization?
Globalization is the process by which businesses expand their operations and influence to other countries.
Define business.
A business is an organization that provides goods or services to customers in exchange for money.
What is a partnership?
A business structure in which two or more individuals share ownership and management responsibilities.
What is human resources (HR)?
Human resources is responsible for managing employee relations, including hiring, training, and ensuring workplace compliance.
What is market share?
Market share is the percentage of total sales in a market that a company controls.
Define a cooperative.
A cooperative is a business owned and operated by a group of individuals for their mutual benefit, where members share profits and decision-making responsibilities.
What is a profit?
Profit is the financial gain that results when the total revenue from sales exceeds the costs of operating the business.
How does an LLC protect owners?
An LLC protects owners by limiting their personal liability, meaning they are not personally responsible for the company’s debts or legal issues.
What is production?
Production is the process of turning raw materials into finished goods or services.
Why is growth important?
Growth allows businesses to increase their market share, revenues, and competitiveness.
Why is ethical behavior important in business?
Ethical behavior builds trust with customers, employees, and the public, helping maintain a positive reputation.
How do businesses contribute to society?
Businesses create jobs, provide products and services, contribute to economic growth, and often engage in corporate social responsibility.
What is the main advantage of a corporation?
A corporation provides limited liability to its shareholders, separating personal assets from the business.
How does R&D help businesses grow?
R&D helps businesses by creating new products or improving existing ones, driving innovation and competitive advantage.
What is social responsibility?
Social responsibility is a company’s commitment to contribute positively to society and the environment.
Name one advantage of globalization.
Access to new markets and customers.
What is an industry?
An industry is a group of companies that produce similar products or provide similar services.
Define a cooperative.
A cooperative is a business owned and operated by a group of individuals for their mutual benefit, where profits are shared among members.
What is the role of finance?
Finance manages the company’s money, including budgeting, investing, and ensuring financial health.
What is corporate social responsibility?
Sustainable practices involve operating in ways that protect the environment, support social equity, and ensure long-term economic viability.
How can a business practice ethical globalization?
A business can practice ethical globalization by respecting local cultures, ensuring fair labor practices, and minimizing environmental impact.