The Role of Business
A decision-making organization established to produce goods and/or services.
What is a "business?"
The 4 main functional areas of a business
What are HR, Financing, Marketing, and Operations.
What is the primary sector?
Business activities involved with the extraction of natural resources.
What are 4 characteristics of a successful entrepreneur?
Creativity, decisiveness, drive, effective communicator, drive, leadership, planner, risk tolerance and management, teamwork, time management and vision
What are the main problems a business may encounter?
Lack of finance, lack of market research, poor marketing, limited human resources, long hours, lack of knowledge/skills
What are goods? Give 3 examples for double points!
Physical products (answers vary)
What is meant by HR?
The function that handles all aspects related to the workforce.
Give 3 examples of the primary sector?
Agriculture, pastoral farming, fishing, forestry, mining, quarrying
What are 4 reasons why people start their own business?
Money, autonomy, challenges, passions, family ties, unfilled market opps, making a difference
What is a business plan?
An official document with the details of an organization and the proposals for reaching its aims and objectives.
What are services? Give 3 examples for double points!
Intangible products (answers vary)
Provide 3 examples of functions carried out by the HR department of an organization.
Recruitment, induction, training, development, appraisal, renumeration, dismissal
What is the secondary sector?
Business activity involved with the manufacturing or construction of finished products.
What is entrepreneurship and how does it differ from intrapreneurship?
The qualities of individuals who run their own business. Intrapreneurs have all the same qualities as entrepreneurs, but they work within a company and not for themselves.
Why might it be a good idea for small businesses to have an effective and well-thought out business plan?
Usually have very limited resources which helps to improve planning and analysis.
To satisfy the needs/wants of their customers by selling goods and services, usually for a profit.
Why do businesses exist?
What is the main purpose or function of the finance department of an organization?
Ensuring the the business has sufficient funds to conduct its daily business.
Give 4 examples of business activity in the secondary sector.
Car manufacturing, carpentry, energy production, food processing, oil refining, road construction, steel works, tailors and dress makers
In the context of business management, what is meant by autonomy?
Being your own boss.
What are the main elements of a business plan?
Executive summary, introduction/overview, market analysis, product analysis, financial analysis, marketing strategy
The factors of production
What are land, labor, capital, and entrepreneurship?
Provide 5 examples of functions carried out by the finance department of an organization.
1. Paying suppliers and creditors on time 2. Paying staff the right amount on time 3. Forecasting finance requirements 4. Assisting marketing department to determine suitable pricing strategies 5. Evaluating potential profits 6. Preparing final accounts 7. Preparing and overseeing budgets
What is the tertiary sector and give 3 examples for double points?
Business activity that involves services to customers
Banking, catering, distribution, healthcare, insurance, legal services, leisure, entertainment, news broadcasting, retail, travel, security
What are the common steps when setting up a business?
An idea, market research, business plan, legal structure, business location, finance and legal requirements.
What is adding value? Where does is happen most and where does it happen least for double points?
The cost of producing a certain good that is worth more than the cost of the resources used to produce it