Business: Role, Types, and Influences

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Questions and Answers

Explain how innovation within a business contributes to both its profitability and the overall quality of life in a community.

Innovation leads to new or improved products/services, increasing sales and profits. It also creates new jobs, increases convenience, provides better products, and stimulates other businesses and improves processes in the community, contributing to a higher quality of life.

Differentiate between a 'primary' and 'tertiary' industry, providing a specific example of a business that would fall under each category.

A primary industry involves the extraction of raw materials (e.g., farming). A tertiary industry provides services (e.g., retail).

Describe two potential benefits and one potential drawback of structuring a business as a public company compared to a private company.

Benefits: access to larger capital through share offerings and increased public visibility. Drawback: increased regulatory scrutiny and compliance costs.

Explain how technological advancements can act as both an external influence and an internal influence on a business.

Externally, new technologies can disrupt markets or create new opportunities. Internally, businesses must adopt and integrate new technologies to improve efficiency and competitiveness. Signup and view all the answers

Identify which stage of the business life cycle is typically characterized by rapid sales growth and market expansion, and what are the two key challenges businesses face during this phase?

Growth phase; two key challenges are managing cash flow/funding and maintaining quality/customer service amidst increasing demand. Signup and view all the answers

Briefly explain how 'liquidation' differs from other forms of business cessation and what typically triggers this process.

Liquidation involves selling off all assets to pay debts and ceasing operations, often triggered by insolvency and can be either voluntary or involuntary. Signup and view all the answers

What are two key features that are important for 'effective management' within a business and give an example of each?

Clear communication enables employees to understanding expectations. Adaptability allows the business to respond effectively to market changes. Signup and view all the answers

Describe how 'strategic thinking' differs from day-to-day operational management and why it is important for effective leadership.

Strategic thinking involves long-term planning and vision, while operational management focuses on daily tasks. It's important for leadership because it sets the direction and goals for the business. Signup and view all the answers

Explain the importance of 'stakeholder' consideration in business decision-making, giving one reason why balancing conflicting interests can be challenging.

Considering stakeholders ensures long-term sustainability and ethical practices. Balancing conflicting interests can be challenging because stakeholders often have competing priorities and values. Signup and view all the answers

Describe two specific strategies a business might use to foster 'staff involvement' and improve employee motivation.

Implementing a mentoring program to support employee growth. Providing regular training opportunities to enhance skills and knowledge. This demonstrates investment in their future and makes them more capable. Signup and view all the answers

Flashcards

Nature of a Business

Creating goods or services to satisfy needs and wants, generating profit, employment, income, and wealth.

SMEs

Small to medium enterprises; can be local, national, or global depending on their scale of operations.

Industry Classifications

Primary (e.g., agriculture), secondary (e.g., manufacturing), tertiary (e.g., services), quaternary (e.g., information services), and quinary (e.g., top-level management).