Nature of a Business

Choose a study mode

Play Quiz

Study Flashcards

Spaced Repetition

Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the main goal of a business?

To make profit

Define a business according to the text.

An organised effort of individuals to produce and sell products for a profit that satisfy individuals' wants and needs.

List three main activities a business undertakes.

Production management, marketing products, distributing goods and services

What is the formula for profit in a business?

Total revenue - total expenses Signup and view all the answers

Explain the importance of profit for a business.

Profit is essential for covering expenses and ensuring sustainability. Signup and view all the answers

What are some key roles of a business in society?

Providing employment, innovation, entrepreneurship, wealth creation Signup and view all the answers

What is the difference between wages and salary?

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

What is a fringe benefit?

A fringe benefit is an extra benefit supplementing an employee's money wage or salary, such as a company car or private healthcare. Signup and view all the answers

Define entrepreneurship.

Entrepreneurship is the ability and willingness to start, operate, and assume the risk of a business venture in the hope of making a profit. Signup and view all the answers

What does innovation refer to?

Innovation refers to the process of creating something new or significantly improving a product, service, or way of doing something. Signup and view all the answers