Nature of a Business

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Questions and Answers

What is the main goal of a business according to the text?

To make profit

List three main activities that a business undertakes as discussed in the text.

Production, Marketing, Distributing

What is the definition of a business as provided in the text?

An organised effort of individuals to produce and sell products for profit

Explain the role of profit in a business according to the text.

Profit is what remains after deducting all expenses from sales revenue Signup and view all the answers

What are some important functions of a business in society as outlined in the text?

Employment, Incomes, Innovation, Entrepreneurship Signup and view all the answers

How is profit calculated in a business?

Total revenue minus total expenses Signup and view all the answers

Define income for an individual and for a business.

For an individual, income is the amount of money received for providing their labor. For a business, income is their profit. Signup and view all the answers

What is the difference between wages and salary?

Wages are money received usually on an hourly or daily basis for services provided to an employer, while salary is a fixed regular payment usually paid fortnightly or monthly. Signup and view all the answers

Explain what a dividend is in the context of a business.

A dividend is the amount of a company's profit that is divided among shareholders. Signup and view all the answers

What is meant by the term 'choice' in the context of consumer behavior?

Choice refers to the act of selecting among alternatives, such as brands, quality, price, color, size, and packaging. Signup and view all the answers

Define entrepreneurship and entrepreneur.

Entrepreneurship is the ability and willingness to start, operate, and assume the risk of a business venture. An entrepreneur is someone who starts, operates, and assumes the risk of a business venture. Signup and view all the answers

What is the difference between invention and innovation?

Invention refers to the development of something totally new, while innovation refers to creating something new or significantly improving a product, service, or process. Signup and view all the answers

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