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Questions and Answers
What aspect of the environment does the dependency ratio relate to?
What aspect of the environment does the dependency ratio relate to?
Which of the following factors is NOT included in the natural environment?
Which of the following factors is NOT included in the natural environment?
Which component directly involves rules and regulations affecting business operation?
Which component directly involves rules and regulations affecting business operation?
What does the global environment encompass?
What does the global environment encompass?
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Which of the following is part of the social and cultural environment?
Which of the following is part of the social and cultural environment?
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Which of the following is considered part of the internal environment of a business?
Which of the following is considered part of the internal environment of a business?
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What is a key benefit of studying the business environment?
What is a key benefit of studying the business environment?
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Which stakeholder is primarily responsible for supplying raw materials to a business?
Which stakeholder is primarily responsible for supplying raw materials to a business?
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The macro environment affects a business in which of the following ways?
The macro environment affects a business in which of the following ways?
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Which of the following groups does NOT qualify as a competitor to a business?
Which of the following groups does NOT qualify as a competitor to a business?
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Which environment is controllable by the organization?
Which environment is controllable by the organization?
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Which of the following factors is NOT typically considered part of the economic environment that influences businesses?
Which of the following factors is NOT typically considered part of the economic environment that influences businesses?
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Which group is most likely to include individuals who formulate plans for the business?
Which group is most likely to include individuals who formulate plans for the business?
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What was one major change in production due to the industrial revolution?
What was one major change in production due to the industrial revolution?
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Which of the following describes 'division of labour'?
Which of the following describes 'division of labour'?
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What is one of the disadvantages of division of labour?
What is one of the disadvantages of division of labour?
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What is the definition of business?
What is the definition of business?
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Which of the following was a change in commerce due to the industrial revolution?
Which of the following was a change in commerce due to the industrial revolution?
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What are goals typically characterized by?
What are goals typically characterized by?
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What can be a positive outcome of establishing objectives?
What can be a positive outcome of establishing objectives?
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What is a mission statement?
What is a mission statement?
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How did the industrial revolution affect societal standards?
How did the industrial revolution affect societal standards?
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Which of the following reflects a negative impact of the industrial revolution?
Which of the following reflects a negative impact of the industrial revolution?
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What is the primary purpose of trade in business?
What is the primary purpose of trade in business?
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Which of the following is NOT considered an auxiliary service in trade?
Which of the following is NOT considered an auxiliary service in trade?
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What type of e-commerce involves transactions between businesses?
What type of e-commerce involves transactions between businesses?
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Which classification describes resources that can be measured in terms of currency?
Which classification describes resources that can be measured in terms of currency?
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Which trend is characterized by the rise of businesses using electronic methods?
Which trend is characterized by the rise of businesses using electronic methods?
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Which of the following best defines primary production?
Which of the following best defines primary production?
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In stakeholder analysis, who is primarily interested in ensuring fair returns on their investments?
In stakeholder analysis, who is primarily interested in ensuring fair returns on their investments?
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What is a key objective of businesses classified as 'Not for Profit' organizations?
What is a key objective of businesses classified as 'Not for Profit' organizations?
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Which of the following resources is classified under '7m's as 'Methods'?
Which of the following resources is classified under '7m's as 'Methods'?
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What main factor distinguishes intangible services from tangible goods?
What main factor distinguishes intangible services from tangible goods?
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What role does effective communication play in auxiliary services?
What role does effective communication play in auxiliary services?
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Which of the following statements accurately represents external stakeholders?
Which of the following statements accurately represents external stakeholders?
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Which resource is considered a financial resource?
Which resource is considered a financial resource?
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Which production sector is associated with manufacturing and construction?
Which production sector is associated with manufacturing and construction?
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Study Notes
Introduction to Business & Business Environment
- Concept of Business: Any economic activity fulfilling human needs and wants.
- Needs vs. Wants: Needs are essential (food, shelter), wants are not
- Products: Anything offered to the market (goods, services, ideas, places, or organizations).
- Markets: Places where buyers and sellers connect (physical or virtual).
- Value & Customer Satisfaction: Value is customer's perception of product abilities to meet needs, while satisfaction is the fulfillment derived from consuming a product.
- Exchange & Transactions: Trading goods or services between parties; transactions involve exchanging with money.
Evolution of Business
- Self-Sufficient Economy: Directly producing all needed goods and services.
- Specialization: Division of labor, leads to more efficient production.
- Barter System: Direct exchange of goods or services (limitations: double coincidence of wants, valuing products, storing products, perishability, divisibility).
- Money: Medium of exchange to overcome issues with barter.
- Industrial Revolution: Significant changes in agriculture, manufacturing, and transportation, leading to industrialization (new technologies, large-scale production, increased output and quality).
- Commercial Changes: New banks, better communication and transportation, increased use of money.
- Social Changes: Increased standard of living, rise of cities, environmental concerns.
- Division of Labor: Separation of work into tasks, assigned to separate groups or individuals.
Changes in Production
- Industrial Revolution Impacts: Scaling from small businesses to large industries, introduction of machinery, improvement in output quality and quantity.
- Commercial Changes: New banks, improvements in communication and transportation.
- Impact on Society: Rise in living standards, more urban development, concern over environmental pollution.
Basics of Business
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Types of Businesses:
- B2B (Business-to-Business): Business dealing with other business.
- B2C (Business-to-Consumer): Business dealing with individual consumer.
- C2C (Consumer-to-Consumer): Individual dealing with another individual.
- B2G (Business-to-Government): Business dealing with government.
- Classification of Businesses: These can be categorized through the stage of production, nature or ownership.
Business Environment
- Internal Environment: Elements within the business (owners, managers, employees, resources, culture, structure).
- External Environment: Elements outside the business, including the task (customers, suppliers, competitors, producers of substitute goods, intermediaries) and general (political, economic, social, technological, legal, natural, global) environments.
- Macro Environment: Large-scale forces affecting businesses.
Stakeholder Concept
- Stakeholders: Individuals or groups with an interest in a business (owners, managers, employees, customers, suppliers, etc.).
- Shareholder Concept: Meeting stakeholder needs while maximizing shareholder value.
Business as a Process of Inputs & Outputs
- Production Process: Transformation of inputs (raw materials, labor, land, capital, information and time) into outputs (goods or services).
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Description
Explore the foundational concepts of business and its environment, including the distinction between needs and wants, the evolution of markets, and the significance of customer satisfaction. This quiz covers essential themes such as exchange, products, and the historical transition from self-sufficient economies to specialized business practices.
