Business Basics
What is a business?
An organization that produces goods or services to satisfy customer needs and wants.
Why do companies advertise?
To inform or persuade customers to buy products
What is revenue?
Money received from sales
Why do companies train employees?
To improve skills and performance
State ONE reason why companies expand to other countries.
To increase sales & reach more customers
State ONE reason why people may start businesses.
To earn income / be independent / solve a problem
What is branding?
Creating a unique name / image to differentiate a product from its competitors.
What is a cost?
Money spent by a business.
What is motivation?
The desire to work hard and achieve goals.
What does Google mainly make money from?
Advertising
What does “profit” mean in simple terms?
Money earned after paying costs.
State the 4 Marketing Mix.
Product, Place, Pricing, Promotion
Why can a business with high sales still fail?
Because they might not have enough cash to pay their bills on time.
Explain one benefit of motivated workers.
Higher productivity and/or better quality output
Why do companies in the phone industry release new models regularly?
To stay competitive & meet changing consumer demand
Explain one role of a manager in a business.
Planning, organizing, leading or controlling employees.
Explain one reason why strong brands can charge higher prices.
Customers trust the brand and are more loyal to the company.
Explain the difference between profit & cash.
Profit is the money earned after costs; cash is the actual money available.
State the 3 main methods of production.
Job production, Batch production, Flow production
State TWO ways on how do companies stay competitive in their respective market.
Develop new models, improve customer service, more frequent advertising, etc
Explain one possible conflict between owners and managers in a business.
Owners want higher profits, managers may prioritize job security or growth.
Analyze one reason why companies spend money on market research before launching new products.
To understand customer needs & reduce risk of failure.
State the order of preparing financial statements.
Income Statement (I/S), Statement of Changes in Equity (SOCE), Statement of Financial Position (SOFP), Cash Flow Statement, Notes to Financial Statements
State the order of Maslow’s Hierarchy of Needs.
Physiological needs, Safety needs, Belonging, Self-esteem, Self-actualistion.
Analyze 1 reason why Netflix replaced DVDs with online streaming.
Technology changed consumer behavior, and streaming is more convenient & scalable.