15 Questions
What is the primary goal of any business?
To satisfy people's needs and wants
Which of the following best describes the difference between products and services?
Products are tangible, services are intangible
What does a business primarily do to make profit?
Satisfy people's needs and wants
In the context of business, who are stakeholders?
Customers and suppliers of the business
What term is used for tangible commodities such as cars, computers, and food items?
Products
Which of the following is an example of an intangible commodity?
Insurance
What are the three ways of categorizing business firms mentioned in the text?
By size, profit motive, and sector
According to the text, what defines a microenterprise?
Owned by one person and usually home-based
How many workers typically constitute a small enterprise according to the text?
51 to 500
Which type of business is motivated to gain profits from its activities and operations?
For-profit organizations
How are businesses classified according to sector?
By the economic sectors in which they operate
What is the defining characteristic of a medium-sized enterprise according to the text?
51 to 500 workers and managed by their owners on a daily basis
Which type of business is not driven to gather profits from its activities?
Nonprofit organization
What defines a microenterprise in terms of the number of employees?
< 10 persons
What is a characteristic of small enterprises according to the text?
< 50 workers
Study Notes
Business Fundamentals
- The primary goal of any business is to make a profit.
Products and Services
- The main difference between products and services is that products are tangible goods, while services are intangible experiences.
- Examples of tangible products include cars, computers, and food items.
- Examples of intangible commodities include educational courses and hotel stays.
Business Structure
- Businesses can be categorized into three types: microenterprises, small enterprises, and medium-sized enterprises.
- A microenterprise is defined as a business with fewer than 10 employees.
- A small enterprise typically has between 10 and 50 employees.
- A medium-sized enterprise is characterized by having between 50 and 200 employees.
Business Motivations
- A for-profit business is motivated to gain profits from its activities and operations.
- A non-profit business is not driven to gather profits from its activities.
Business Classification
- Businesses can be classified into sectors, which include primary, secondary, and tertiary sectors.
Stakeholders
- In the context of business, stakeholders include individuals or groups with a vested interest in the business, such as shareholders, employees, and customers.
Test your knowledge on the meaning of business, types of business, characteristics, objectives, resources, stakeholders, basic business terms, and advantages/disadvantages of owning a business in lecture 1 of BUA 101 Introduction to Business I at Nile University of Nigeria.
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