Business Organization and Enviroment

1

100

Complete the next sentence: A business exists to satisfy the______ and ______ of people.

Needs/Wants

200

Explain what is added value.

Is the difference between the value of inputs and the value of outputs.

300

What is a business?

Decision-making organization involved in the process of using inputs to produce goods and/or to provide services.

400

The term PRODUCT can refer to both...

Goods and Services

2

100

Explain the difference between CUSTOMERS and CUNSUMERS

Customers are the people or organization buys the product. Consumers are the ones who actually use the product.

200

Name the types of products.

Consumer goods, Capital goods and Services

300

Define opportunity cost.

The best alternative that is forgone when making a decision.

400

Name and explain the factors of production.

Land: all natural resources. Labour: physical and mental effort of people used in the production. Capital: all non-natural or manufactured resources.

3

100

When a country moves away from the primary production towards manufacturing as its principal sector then it has experienced:

Industrialisation

200

Explain what specialisation means in a business and give two disadvantages of it.

Is that a business concentrates on the production of a particular good or service or a small range of similar products. (Boredom, Inflexibility,Lack of Autonomy, Cost)

300

Name the 4 essential business function areas.

Production, Marketing, Finance & Human Resources

4

100

Countries that changes from the manufacturing towards the tertiary sector, then they are known as...

Developed countries.

200

Explain the Business Sectors.

Primary Sector: involved in the extraction, harvesting and conversion of land. Secondary Sector: Use of raw materials for the manufacturing and construction for useable products. Tertiary Sector: Provide services to costumers.

300

What are the purposes of business activity?

The main purpose is the process of turning factor inputs (land, labour, capital) into outputs of goods and services to meet the needs and wants of different customers.

400

division of labour also refers to: _ _ _ _ _ _ _ _ _ _ _ _ _

Specialisation