Podcast Beta
Questions and Answers
Businesses are set up to provide people's needs and wants through goods or services at a ______.
cost
Needs are the essential components important for one's ______.
survival
Human resources are needed for business to run where it is ______.
labor intensive
Marketing ensures that people know a business exists so it can be ______ and run well.
Signup and view all the answers
If finances are borrowed, the business must ensure that profits are made so that ______ can be paid back.
Signup and view all the answers
The ______ sector is where we acquire raw materials for the business start-up.
Signup and view all the answers
Backwards integration expands a company's role to fulfill tasks formerly completed by businesses up the ______.
Signup and view all the answers
In the business start-up process, it is important to ______ the market.
Signup and view all the answers
A sole proprietorship is a business owned and run by a single ______.
Signup and view all the answers
The tertiary sector refers to rendering services or the distribution of ______.
Signup and view all the answers
Study Notes
Business Essentials
- Businesses aim to fulfill people's needs and wants through goods or services at a cost.
- Needs refer to essentials for survival, while wants are individual desires that are non-essential.
Key Factors Needed for Business
- Human Resources: Essential for labor-intensive operations, requiring qualified personnel.
- Physical Resources: Goods, items, or materials necessary to run a chosen business.
- Finance: Capital is crucial, with considerations for borrowed money and ensuring profitability for repayments.
- Enterprise/Entrepreneur: Refers to individuals or spaces dedicated to business activities.
Functions of Business
- Human Resources: Hiring qualified individuals for specific business roles.
- Marketing: Promoting the business to attract customers and potential employees.
- Finance/Accounts: Ensuring adequate financial resources and managing financial obligations.
- Operations: Managing inventory and the supply of raw materials for continuous business functionality.
Sectors of Business
- Primary Sector: Involves acquiring raw materials for business startups.
- Secondary Sector: Focuses on processing raw materials into finished products.
- Tertiary Sector: Provides services and distributes goods.
- Quaternary Sector: Engages in person-to-person services, consulting, or online IT services.
Vertical Integration Strategies
- Vertical Integration: A company owns multiple stages of its production process, from raw materials to retail.
- Backward Integration: Expanding control by taking over suppliers to strengthen the supply chain.
- Forward Integration: Merging different value chains to enhance market share or reduce costs.
Sources of Entrepreneurship Ideas
- Engaging with reading materials.
- Seeking new needs in the market.
- Utilizing technology.
Reasons for Starting a Business
- Driven by necessity for income or independence in work choices.
Process of Business Startup
- Organize the foundational aspects of the business.
- Conduct thorough market research.
- Develop a detailed business plan.
- Address and establish legal requirements.
- Test the business concept in the market.
Definition and Role of an Entrepreneur
- An innovator tasked with developing new ideas or projects within a company setting.
Common Problems Faced by Businesses
- Issues related to organization, such as inappropriate locations.
- Challenges in market research.
- Difficulties with business planning.
- Legal compliance hurdles.
- Financial management concerns.
- Market competition issues.
Types of Business Organizations
-
Private Organizations:
- Owned and operated by a sole entrepreneur responsible for decisions and operations.
- Limited accountability and personal liability for business issues.
-
Partnership:
- Owned by two partners who share responsibilities and finances.
- Personal liability for legal matters; presence of "sleeping partners" who may have minimal involvement.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
This quiz covers essential concepts in business management, focusing on the importance of fulfilling people's needs and wants through goods and services. Key factors such as human resources and physical assets necessary for running a business are highlighted. Test your understanding of these foundational principles in business.
