Introduction to Business Concepts

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Questions and Answers

What are the components of a business based on different activities?

The components of a business based on different activities are manufacturing, trading, and exchange of services.

What are the key features of a business?

The key features of a business are: buying and selling, use of money as a medium of exchange, capital to start, profit motive, regularity, risk, competition, generating employment, and creating utility/satisfaction for customers.

What is the role of the tertiary industry?

The tertiary industry involves providing services such as transportation, education, hospitality, legal services, and healthcare.

What is the main goal of an entrepreneur?

The main goal of an entrepreneur is adding value to customers and creating value. Signup and view all the answers

What is the difference between wholesale trade and retail trade?

Wholesale trade involves taking goods in larger quantities from producers and selling to retailers, while retail trade involves taking goods from wholesalers or directly from producers and selling to final consumers. Signup and view all the answers

What are the different types of industries mentioned in the text?

The different types of industries mentioned are primary (extraction of raw materials), secondary (manufacturing and construction), tertiary (services), and quaternary (virtual services using technology). Signup and view all the answers

What is the main purpose of a business?

The main purpose of a business is to make a profit through lawful economic activity that utilizes limited resources efficiently. Signup and view all the answers

What is the difference between a customer and a consumer?

All consumers are customers, but not all customers are consumers. Consumers are the end-users of a product or service, while customers are those who purchase the product or service, which may include both consumers and other businesses. Signup and view all the answers

What is the difference between revenue and expenses in a business?

Revenue is the total money or income of the business, while expenses are the costs of goods and services. Profit is the positive difference between revenue and expenses, while a loss is the negative difference. Signup and view all the answers

What are the two types of stakeholders in a business?

The two types of stakeholders in a business are primary stakeholders and secondary stakeholders. Primary stakeholders have a direct interest in the business, while secondary stakeholders have an indirect interest. Signup and view all the answers

What is the difference between capital and liability in a business?

Capital refers to all the investments made by the owner of the business, while liability is an obligation of the business that will be repaid in the future in the form of cash, goods, services, or other assets. Signup and view all the answers