Business Fundamentals
What is the difference between a need and a want?
A need is something essential for survival, while a want is something desired but not necessary.
What is the definition of entrepreneurship?
The process of starting and managing a new business venture.
Define leadership and management.
Leadership involves inspiring and guiding others toward a common goal, while management involves planning, organizing, and controlling resources to achieve that goal.
Define the concept of the target market.
A specific group of consumers that a company aims to reach and serve with its products or services.
Define the terms "assets" and "liabilities."
Assets are resources owned by a company, while liabilities are its debts and obligations.
Name two types of business ownership.
Sole proprietorship and partnership.
Name two characteristics of successful entrepreneurs
Creativity and resilience.
What is the purpose of performance appraisals in the workplace?
To assess employees' job performance, provide feedback, and identify areas for improvement.
What is the difference between a product and a brand?
A product is a tangible item or service, while a brand encompasses the emotional and symbolic associations consumers have with that product.
What is the difference between revenue and profit?
Revenue is the total income generated by a company, while profit is the amount left after deducting expenses from revenue.
What is an ethical dilemma in business?
Answer: A situation where a person must choose between two morally conflicting options.
What is a business plan, and why is it important for entrepreneurs?
A written document outlining a business's goals and how it plans to achieve them. It is crucial for securing funding and guiding the business's growth.
What is the role of a human resources manager in an organization?
To oversee recruitment, training, and employee relations.
What is the marketing mix?
The combination of product, price, place, and promotion strategies used to meet customer needs and achieve marketing goals.
What is the purpose of financial statements in accounting?
To provide a summary of a company's financial performance and position.
Define supply and demand.
Supply refers to the quantity of a product available, while demand refers to the desire and ability to buy that product.
What is market research, and why is it essential for entrepreneurs?
The process of gathering and analyzing information about a target market to guide business decisions. It helps entrepreneurs understand customer needs and preferences.
Explain the concept of employee motivation.
The psychological factors that drive an individual's behavior and performance in the workplace.
Name two types of market segmentation.
Demographic segmentation and psychographic segmentation.
Explain the concept of depreciation in accounting.
Depreciation is the systematic allocation of the cost of a long-term asset over its useful life.
What is the difference between gross profit and net profit?
Gross profit is the difference between revenue and the cost of goods sold, while net profit is the amount remaining after deducting all expenses, including operating expenses and taxes
What are the key components of a business model canvas?
The key components of a business model canvas include customer segments, value propositions, channels, customer relationships, revenue streams, key activities, key resources, key partnerships, and cost structure.
What are the main functions of human resource management? Name at least 3.
The main functions of human resource management include recruitment and selection, training and development, performance management, compensation and benefits, employee relations, and HR planning.
What is the concept of the marketing funnel, and what are its stages?
The marketing funnel represents the customer journey, from awareness to purchase. Its stages include awareness, interest, consideration, conversion, and retention.
What is the difference between cash basis accounting and accrual basis accounting?
Answer: Cash basis accounting records transactions when cash is received or paid, while accrual-basis accounting records transactions when they occur, regardless of cash flow.)