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Which of the following is NOT a disadvantage of delegation?
Which of the following is NOT a disadvantage of delegation?
A centralized organization has decision-making power concentrated at the head office.
A centralized organization has decision-making power concentrated at the head office.
True (A)
What is the primary responsibility of a Chief Executive Officer (CEO)?
What is the primary responsibility of a Chief Executive Officer (CEO)?
The CEO is responsible for the overall performance and success of the company.
A ______ is an individual who oversees a group of tasks or a specific area of a department.
A ______ is an individual who oversees a group of tasks or a specific area of a department.
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Match the following management roles with their primary responsibilities:
Match the following management roles with their primary responsibilities:
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Which of these groups are considered internal stakeholders?
Which of these groups are considered internal stakeholders?
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Suppliers are considered external stakeholders.
Suppliers are considered external stakeholders.
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What is the primary concern of managers as stakeholders?
What is the primary concern of managers as stakeholders?
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A business's formal, internal framework that shows how it is managed and organized is known as its ______ structure.
A business's formal, internal framework that shows how it is managed and organized is known as its ______ structure.
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Match the functional departments with their corresponding activities in the organization:
Match the functional departments with their corresponding activities in the organization:
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What is the term for the route through which authority is passed down in an organization?
What is the term for the route through which authority is passed down in an organization?
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The number of levels in an organizational structure is referred to as 'chain of command'.
The number of levels in an organizational structure is referred to as 'chain of command'.
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What is the primary motivation of customers as stakeholders?
What is the primary motivation of customers as stakeholders?
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Which of the following is NOT a benefit of market segmentation?
Which of the following is NOT a benefit of market segmentation?
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Niche marketing involves selling the same product to the entire market.
Niche marketing involves selling the same product to the entire market.
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What is market research?
What is market research?
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A ______ is a part of the whole market where consumers share specific characteristics.
A ______ is a part of the whole market where consumers share specific characteristics.
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Match each market segmentation method with its corresponding characteristic.
Match each market segmentation method with its corresponding characteristic.
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Which of the following is NOT a method of market segmentation?
Which of the following is NOT a method of market segmentation?
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What is the primary advantage of mass marketing?
What is the primary advantage of mass marketing?
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Market research can help businesses understand what customers like and dislike about their products.
Market research can help businesses understand what customers like and dislike about their products.
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What is the primary aim of advertising?
What is the primary aim of advertising?
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Which of the following is NOT an example of a primary sector business?
Which of the following is NOT an example of a primary sector business?
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E-commerce is the use of internet and other technologies by businesses to market and sell goods and services to consumers.
E-commerce is the use of internet and other technologies by businesses to market and sell goods and services to consumers.
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What are the four elements of the marketing mix?
What are the four elements of the marketing mix?
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The economic problem arises from the fact that consumer needs and wants are unlimited, but resources are limited.
The economic problem arises from the fact that consumer needs and wants are unlimited, but resources are limited.
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How does a shoe manufacturer add value to raw materials?
How does a shoe manufacturer add value to raw materials?
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A _____ is an incentive used to encourage short-term increase in sales or repeat sales.
A _____ is an incentive used to encourage short-term increase in sales or repeat sales.
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Businesses that provide services to consumers and other businesses are classified as the ______ sector.
Businesses that provide services to consumers and other businesses are classified as the ______ sector.
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Match the following marketing activities with their respective descriptions:
Match the following marketing activities with their respective descriptions:
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Match the following business activities with their corresponding sector classification:
Match the following business activities with their corresponding sector classification:
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Which of the following is NOT a channel of distribution?
Which of the following is NOT a channel of distribution?
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What is the main characteristic of a developed country?
What is the main characteristic of a developed country?
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What is the primary factor a producer considers when choosing a channel of distribution?
What is the primary factor a producer considers when choosing a channel of distribution?
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A marketing strategy is a detailed plan that uses the marketing mix elements to achieve marketing objectives.
A marketing strategy is a detailed plan that uses the marketing mix elements to achieve marketing objectives.
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The chain of production involves activities from only the primary and secondary sectors.
The chain of production involves activities from only the primary and secondary sectors.
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Explain the concept of specialization in the context of business activity.
Explain the concept of specialization in the context of business activity.
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What is the primary purpose of legal controls in marketing?
What is the primary purpose of legal controls in marketing?
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A business that expands into a new foreign market will always face the problem of cultural differences.
A business that expands into a new foreign market will always face the problem of cultural differences.
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What are two common legal controls that affect marketing functions?
What are two common legal controls that affect marketing functions?
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The production process involves converting inputs, such as land, labor, and capital, into ______.
The production process involves converting inputs, such as land, labor, and capital, into ______.
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Match the following terms with their corresponding definitions:
Match the following terms with their corresponding definitions:
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What are two ways to improve labor productivity?
What are two ways to improve labor productivity?
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International franchising is a method to overcome problems of entering new foreign markets.
International franchising is a method to overcome problems of entering new foreign markets.
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What is the formula for calculating labor productivity?
What is the formula for calculating labor productivity?
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Study Notes
Understanding Business Activity
- Business activity is the process of producing goods and services to meet consumer demand.
- Needs refer to fundamental goods or services that are necessary for survival and maintaining a minimum standard of living, such as food, shelter, and healthcare.
- Wants are desired goods or services that are not essential.
- Scarcity exists due to limited resources and unlimited wants.
- Opportunity cost is the benefit lost from choosing one alternative over another.
Factors of Production
- Land: all natural resources (minerals, ores, fields, oils, and forests).
- Labor: the available workforce.
- Capital: machinery, equipment, and finance for production.
- Enterprise: individuals willing to take the risk of setting up and running businesses.
Classification of Businesses
- Primary sector: extraction of natural resources (farming, fishing, forestry, mining).
- Secondary sector: processing and manufacturing (refining, manufacturing, construction).
- Tertiary sector: service provision (shops, restaurants, banks, cinemas, airlines).
Changing Importance of Business Classification
- Developing countries typically have a small industrial sector and low standards of living.
- Developed countries typically have high levels of industrialization and higher average incomes.
Business Enterprises in Private and Public Sectors
- Private sector: individuals and companies own and control businesses for profit. These include sole traders, partnerships, limited companies (private and public), franchises, and joint ventures.
- Public sector: state or government controls businesses. These include government departments, public corporations, and nationalized industries.
Enterprise and Entrepreneurship
- Entrepreneur: an individual who has an idea for a new business, takes the financial risk of starting it, and manages it.
- Successful entrepreneurs are usually innovative, self-motivated, and determined.
Types of Business Organizations
- Sole trader: a business owned and controlled by one person who takes all risks and profits.
- Partnership: a business owned and controlled by two or more people, sharing responsibility and profit.
- Private limited company: a company, small to medium size, owned by shareholders with limited liability. They cannot sell shares publicly.
- Public limited company: a large company, owned by shareholders with limited liability, able to sell shares to the public.
Business Objectives and Stakeholder Objectives
- SMART objectives: Specific, Measurable, Achievable, Relevant, Time-bound.
- Stakeholder objectives are the targets to be set by different stakeholder groups (owners, employees, suppliers) involved in a business.
Motivating Workers
- Motivation: factors influencing employee behavior towards achieving business objectives. These include: pay, job security, promotion, training, status, and responsibility.
Business Organization and Management
- Organization structure: internal framework of a business, showing management and organization.
- Roles and Responsibilities of Management: Directors, Chief Executive Officers, Supervisors.
- Communication: passing information between individuals and groups within and outside the business.
Methods to Measures Business size
- Capital employed
- Value of output
Why Some Businesses Grow and Others Remain Small
- Greater market share (to maximize profits)
- Increase profitability
- Enjoy the benefits of economies of scale
- Greater protection from the risk of takeover
Why Some Businesses Fail
- Poor planning
- Liquidity problems.
- Poor choice of location
- Poor management.
- Failure to invest in new technology
- Poor Marketing.
- Lack of finance
- Competition
- Economic influences
Organizational Structure
- Hierarchy the number of levels in an organisational structure.
- Chain of command authority flow.
- Span of control number of subordinates reporting to a supervisor.
Decentralised and centralised organization
- Centralised: decision-making powers are held at a central point.
- Decentralised: decision-making powers are distributed to lower levels of the organisation.
Delegation
- Delegating authority to a subordinate in the organization.
Leadership Styles
- Autocratic: leaders make all decisions.
- Democratic: employees participate in decision-making.
- Laissez-faire: leaders let employees make most decisions.
Trade Unions
- Organisation of employees aimed at improving pay and working conditions, providing legal advice, among other services.
- Carry out negotiations, resolve conflicts, provide support and legal advice, run pension schemes and insurance schemes.
Profitability and Liquidity
- Profitability: ability of a company to use resources to generate revenues > expenses.
- Liquidity: ability to pay short-term debts.
Financial Statement Analysis
- Income statement: records revenue, costs, and profits over a given period.
- Statement of financial position: records assets, liabilities, and owner's equity at a specific point in time.
- Cash flow statement: records inflows and outflows of cash over a given period.
External Influences on Business Activity
- Economic Issues (balance of payment, employment, inflation, economic growth).
- Legal controls (consumer protection, competition laws)
- Ethical Issues
- Impact of Globalization(global sourcing, risks for MNCs.)
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Description
This quiz explores the fundamentals of business activities, including the concepts of needs and wants, scarcity, and opportunity cost. Additionally, it covers the factors of production and the classification of businesses across different sectors. Test your knowledge on how these elements interact in the economy.
