1.1
What is the goal in business?
The goal in business to make money by creating a product to sell or providing a service.
What does it mean when a business uses capitally intensive processes?
It relies more on machinery, equipment, and technology than on labor to produce goods or services.
What is a entrepreneur?
What is a intrapreneur?
What is a similarity between the two (extra points)
Entrepreneuer is a self-employed that creates a business that belongs to her/him
An intrapreneur is a person who works for a business and creates a product or service
A similarity is that both roles are vital to business activity, and must balance the risk of failure against likelihood of success.
What are the 5 types of legal organizations for a business?
Sole traders, partnerships, companies/corporations, and for/non profit social enterprises
What are shareholders?
Are shareholders responsible for the company?
Shareholders are individuals or entities that own shares of stock in a company, which makes them part owners of a company?
Shareholders have limited liability and are not responsible for the company's debts.
What are the four resources that all organizations must have?
Name all of them for +200 points.
All organizations must have human, physical and financial resources.
What does it mean when a business uses labor intensive processes?
It relies more on human workers to produce goods or services, especially in relation to machinery and equipment
What are the first three steps to starting a business?
Organizing the basics
Refining the business idea through market research
Planning the business
What is the difference between a sole trader and a partnership?
(Define both)
A partnership is a business formed by two or more people. The decisions are jointly made by the partners. There is no legal distinction between the business & the partners.
What are two benefits of being a company? +100
And two disadvantages? + 100
Benefits:
- Increased stability - Recognizes a business as successful -Continuity -Improved changes of furthering finance ex. loans and selling shares
Disadvantages:
- Lots of time and money to fulfill legal requirements
-Selling shares does not guarantee a desired amount of finance
-A company has no control over shares and the stock market
Name the four resources (+150)
and describe two of the four resources that all organizations/businesses must have. (+150)
HR: the right quality and quantity of people required to make the product or provide the service.
Physical: The right quality & quantity of materials, machinery and land space.
Financial: The right quality & quantity of cash and other forms of money.
Enterprise: The organization's collective capabilities, knowledge and assets to achieve it's goal.
What are the two production outputs?
Think of what businesses provide
Goods: Tangible products that we can physically take home
Services: Intangibles that the buyer does not physically take home
What are last 3 steps to starting a business?
Establishing legal requirements
Raising the finance
Testing the market
Companies have a separate legal identity, which offers limited liability and perpetual existence to it's owners.
- Offers a more varied service than a sole trader
-partners bring different spills so there's more expertise
- partners can assist in emergencies or vocational leave
-More chance of continuity as the business will not end if one partner dies.
-profits shared -Disagreements
-Often use a binding document that sets out rights and duties of partners.
-Partners are liable for all the debt and actions of the other partners.
Name the four factors of production (+ 200)
and describe two of the factors of production for a company (+200)
Land: All renewable and non-renewable resources of nature
Labor: The human effort- physical and mental- used to create goods and services. Manual & skilled labor take up the workforce of the business.
Capital: The right quality & quantity of cash
Enterprise: The skills and drive to run a business, as well as the organization of the other resources (land, labor, capital)
Sectors for goods:
What is the primary sector?
What is the secondary sector?
Primary- All raw materials are acquired here, it can be through extraction, mining, farming, fishing etc.
Secondary- Raw materials are processed, usually by manufacturing.
What are some reasons for starting a business?
Name 3 for 400 pts.
•Rewards
•Independence
•Necessity
•Challenge
•Interest
•Finding a gap
Sharing an idea
What is a non-profit and a for-profit social enterprise?
A non-profit is a business operating in the private sector that does not aim to make profits, but rather the main aim is a social purpose.
A for-profit social enterprise is a business that aims to make money while also having the main aim be a social purpose (positive impact on society)
What are the five cooperatives? +200
Describe the function of two of them +200
Financial cooperative- provides financial services to it's members with the goal of generating profit while addressing social or economic needs within a community
Housing cooperative-provides housing for its members as opposed to providing rent for private landlords.
Workers cooperative- A business owned and democratically controlled by it's employees, who share in the profits and decision making.
Consumer cooperative- provides a service to consumers who are also part owners of the business.
Producer cooperative- Producers collaborate on certain stages of production.
Name two of the business functions and what they refer to
HR- Ensures that the appropriate people are employed, and that the people are suitably rewarded for doing so.
Marketing- Advertising & promoting the product in a way that is easy to understand.
Operations Management- Inclusive of everything- The appropriate processes are used to make the product or service in the desired quality
Finance- Business offers a product or service that is desired by a sufficient amount of businesses/ consumers for a profitable amount.
Sectors for services:
What is the tertiary sector?
What is the quaternary sector?
Tertiary: All services provided here, sometimes using manufactured products.
Quaternary: Subgroup of tertiary, and it provides services that are focused on knowledge
Name 4 possible problems for starting a business.
Operation: The location of the business is inappropriate legal requirements
Registration difficulty finance issues
The research for the business was poor
Goals were too vague
target market wasn't appropriate
Name 4 elements of sole tradership
- The sole trader is liable for all the debt of the business or other claims (Ex. lawsuit)
-Privacy - The finance is usually limited -Stress
-Lack of continuity in the event the owner dies.
-Complete control -Flexibility -All profits belong to sole trader
what is an ngo, and give an example of one? + 200
What do non-profits help? +300
A non-governmental organization is a way to describe a variety of social enterprises.
Ex. Amnesty international, save the whales, Charities.
Non-profits help people or causes in need, and profits are not generated.