Catwoe Analysis and Process Flow Diagram

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Questions and Answers

What is a key characteristic of a profession?

Rendering personal service for a salary or wage

Rendering personal service based on professional education and skills (correct)

Undertaking social service activities

Producing and exchanging goods and services for profit

What is the primary objective of a business?

To render personal service for a salary or wage

To engage in professional activities

To earn profits (correct)

To provide social service

Which of the following is an example of a non-economic activity?

Teaching in a school

Running a retail store

Volunteering at a charity (correct)

Working in a hospital

What is employment?

Undertaking to render personal service under an agreement of employment Signup and view all the answers

Which of the following is a characteristic of a business?

Engaging in an activity concerned with the production and exchange of goods and services Signup and view all the answers

What is the element that is not found in non-economic activities?

Profit Signup and view all the answers

Which of the following is NOT a dimension of business?

Social service Signup and view all the answers

What is the intention of a business?

To make anticipated profit or other benefits Signup and view all the answers

What is the main objective of for-profit commercial organizations?

To make profits in order to survive and grow Signup and view all the answers

Which type of organization has a social goal in mind?

Non-profit social organizations Signup and view all the answers

What is the characteristic of charitable organizations?

They do not make any profit Signup and view all the answers

What is the primary function of state-owned public sector organizations?

To provide a service for people and maintain the proper functioning of the country Signup and view all the answers

What is a characteristic of businesses that operate internationally?

They operate in more than one country Signup and view all the answers

Which type of organization aims to raise money for a particular cause?

Charitable organizations Signup and view all the answers

What is the main difference between for-profit and not-for-profit organizations?

Their business objectives Signup and view all the answers

Which of the following is an example of a public service organization?

The Department of Defense Signup and view all the answers

What is the main objective of government regulation of business?

To protect the interests of consumers and society Signup and view all the answers

What happens if a business fails to comply with tax laws and regulations?

The taxing authorities will assess penalties and interest, and possibly levy bank accounts and cancel permits Signup and view all the answers

What is the concept of 'economies of scale'?

The reduction of costs per unit as output increases Signup and view all the answers

What is the purpose of tax courts?

To resolve disputes between taxpayers and the Internal Revenue Signup and view all the answers

What is required of a licensed accountant to stay updated with law changes?

Continuing education on a yearly basis Signup and view all the answers

What is the primary role of the Bank of Industry in Nigeria?

To promote industrial development in Nigeria Signup and view all the answers

What is a key issue in law and accounting today?

The reminder that an accountant has an accounting license, not a law license Signup and view all the answers

What is the meaning of international business?

Business activities that involve cross-border transactions Signup and view all the answers

What is the purpose of release forms in an accountant's office?

To obtain client consent for electronic submission of documents Signup and view all the answers

What is the main characteristic of a sole proprietorship?

It is owned and controlled by a single individual Signup and view all the answers

What is a consequence of the evolution of the internet and the paperless world?

The decreased need for physical signatures Signup and view all the answers

What is the primary purpose of a memorandum of association?

To state the company's objectives and scope of operations Signup and view all the answers

What is one way the government has adapted to the paperless world?

Allowing pin codes and electronic signatures Signup and view all the answers

What is the concept of corporate social responsibility?

The idea that businesses have a responsibility to society beyond their economic obligations Signup and view all the answers

How can businesses be classified?

By business objective, area of operation, and other factors Signup and view all the answers

What is the primary function of a feasibility report?

To determine the viability of a business idea or project Signup and view all the answers

What is the main difference between a limited liability company and a partnership?

The level of personal liability of the owners Signup and view all the answers

What is the main purpose of a business plan?

To serve as a guide for the development and growth of a business Signup and view all the answers

What is the primary goal of a business?

To supply goods to the consumers Signup and view all the answers

What is the role of finance in a business?

To provide fixed and working capital Signup and view all the answers

What is the process of creating utilities in goods?

Storing and supplying goods when needed Signup and view all the answers

What is the primary function of marketing in a business?

To create customers for the products Signup and view all the answers

Why is organization structure important in a business?

For the successful working of the enterprise Signup and view all the answers

What is the primary aim of a business in relation to society?

To satisfy the social needs Signup and view all the answers

What is the result of a business if the consumer is satisfied?

The consumer will purchase the same thing again Signup and view all the answers

What is not considered a business if it is done in isolation?

A single transaction that earns profit Signup and view all the answers

Study Notes

Chapter 6: The Legal Forms of Business Ownership

The chapter covers the classification of business organizations, determinants of the choice of forms of business ownership, and the basic forms of business ownership.
The basic forms of business ownership include:
- Sole Proprietorship
- Partnership
- Limited Liability Company
- Public Corporations
- Franchises

Chapter 7: Forms of Business Combinations

The chapter covers the concept of business combinations, types of business combinations, and the definition of merger.
Types of business combinations include:
- Merger
- Acquisition
- Integration
- Consolidation
- Absorption
- Takeover
- Conglomerate

Chapter 8: Documents Used by Business Organizations

The chapter covers the documents used by business organizations, including:
- Memorandum of Association
- Articles of Association
- Prospectus
- Certificate of Incorporation
- Certificate of Trading
- Feasibility Report and Business Plan
- Minutes of Meeting
- Schedule of Non-Current Assets
- Schedule of Directors
- Schedule of Shareholders
- Vision
- Mission
- Goals and Objectives
- Strategies
- Policies

Chapter 9: Scale Operation and Economies of Scale

The chapter covers the concept of economies of scale, measurement of size of business, and the determinants of the size of the firm.
Economies of scale can be broken down into:
- Technical economies
- Financial economies
- Managerial economies
- Marketing economies
- Purchasing economies
The chapter also covers the concept of capitalism, socialism, and mixed economy.

Chapter 10: Government and Business in Nigeria

The chapter covers the objectives of government regulation of business, reasons for government control of business, and the role of government in business.
The chapter also covers the specific ways government in Nigeria has aided business development and the roles of some government agencies in the regulation and control of business.

Chapter 11: International Business Administration

The chapter covers the meaning of international business, relevant forces of international business administration environment, and the challenges/barriers to effective international business administration.
The chapter also covers foreign exchange market, foreign direct investment, tariffs, exporting and importing regulations and documentation, international trade, and classical theories of international trade.

The chapter covers the meaning, nature, and scope of business social responsibilities, dimensions of corporate social responsibility, and the arguments for and against corporate social responsibility.
The chapter also covers the changing concept of social responsibility for business, the stakeholder concept, and the best practices and standards in corporate social responsibility.

Chapter 13: The Problems of Business Administration in Nigeria

The chapter covers the economic activities, which can be classified into three: profession, employment, and business.
The chapter also covers the definition of business and the problems of business administration in Nigeria.### Characteristics of Business
A business is not just a single transaction, but a series of transactions that involve repeated buying and selling of goods or services.
Business creates utilities in goods, such as storing and supplying them when needed, to meet consumer preferences and needs.
An organization structure is essential for a business to operate successfully, with various activities divided into departments, sections, and jobs.
Financing is necessary for a business to provide fixed and working capital.
The ultimate aim of business is to satisfy consumer needs, and if consumers are satisfied, they will purchase again.

Functions of Business

Production function involves transforming raw materials into goods and services.
Marketing function involves all activities from getting products from producers to consumers, including creating customers and providing maximum satisfaction.

Importance of Laws and Regulations

Businesses must comply with laws and regulations, including tax laws, to avoid penalties and interest.
Tax authorities assess penalties and interest for non-compliance, and may even levy bank accounts and cancel permits.
Tax courts provide a platform for resolving disputes between taxpayers and the Internal Revenue.

Role of Accountants

Accountants must stay updated with changing laws and regulations to provide accurate information to clients.
Continuing education is required for accountants to maintain their licenses.
Accountants must maintain ethical standards and code of conduct, and avoid performing legal acts.

Classification of Businesses

Businesses can be classified according to business objectives, areas of operation, size, types of products, sectors of the economy, and mode of ownership.
By business objectives, businesses can be classified into profit-making, not-for-profit, charitable, and public service organizations.
By area of operation, businesses can operate internationally, nationally, or locally.

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Assess your understanding of Catwoe Analysis, Process Flow Diagram, and related concepts. This quiz covers the process flow diagram, summary, and practice questions.