Business Administration Quiz

Principles of Business Administration Lecture Notes

• Business involves producing and distributing goods and services to customers.

• Business activities include organizing, managing, producing, and marketing products.

• Business resources include human resources and materials.

• Characteristics of business include exchange of goods and services, profit motive, dealing in goods and services, uncertainty and risk bearing, and continuity and regularity.

• Objectives of business include profit, survival, growth, market share, productivity, innovation, employee welfare, service to consumers, and social responsibility.

• Consumers, citizens, and wage earners have a relationship with business and affect it directly or indirectly.

• Consumers play a role in the growth of a company by continuing to patronize it.

• Wage earners contribute to a business through their skills, job market, personality, and interest.

• Citizens affect business activities through policy decisions affecting the public.

• Business benefits owners, employees, government, and general society.

• Management can be classified as junior or first-line and senior, with different levels of responsibility and range of activities.

• The major schools of management thought include classical, neo-classical, modern, and behavioral, with different approaches and principles.Business Types, Intermediaries, and Modes of Transportation

• Producers are involved in producing raw materials goods and services for distribution.

• Processors add value to products that they cannot produce from their natural form.

• Manufacturers turn raw or processed goods into finished goods.

• Intermediaries are businesses that transport and distribute goods from one business to another, usually wholesalers and retailers.

• Marketing intermediaries are organizations that assist in moving goods and services from producers to end-users and consumers.

• Agents and brokers are sales representatives of manufacturers and wholesalers, while brokers bring buyers and sellers together.

• Industrial distributors buy related product lines from many manufacturers and sell them to industrial users.

• Wholesalers sell finished goods to retailers, manufacturers, and institutions.

• Retailers sell goods to consumers and industrial users for their own consumption.

• There are four main methods of distribution, including direct from producer to customers, via a wholesaler to a retailer, directly to retailers, and through specialist merchants.

• The best mode of transportation for goods depends on distance, urgency, cost, type of goods, and customer.

• The modes of transportation include roadways, railways, water transportation, air transportation, and pipelines transportation.