Understanding Business Terminology

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What is a key concept in business that focuses on increasing the worth of a product or service?

Cost-cutting

Adding value (correct)

Value subtraction

Price reduction

Which of the following is NOT one of the major types of businesses?

Partnership

Sole proprietorship

Government agency (correct)

Corporation

What are the five major environments in which every business operates?

Educational, Cultural, Environmental, Technological, Business

Political, Economic, Social, Technological, Competitive (correct)

Urban, Rural, Suburban, Industrial, Commercial

Legal, Ethical, Financial, Regulatory, Corporate

Why is it important for a business to have functional areas?

To ensure all key aspects of the business are covered Signup and view all the answers

What is one of the purposes of identifying various business professions?

To promote diversity in the workforce Signup and view all the answers

What is a key characteristic of great team players?

Showing loyalty to the organization Signup and view all the answers

What is the importance of maintaining a confident, positive outlook according to the text?

Negative energy can make the office environment miserable Signup and view all the answers

What is etiquette as defined in the text?

The expected norms of behavior in a particular situation Signup and view all the answers

Which is a common misconception about successful people based on the text?

They avoid obstacles at all costs Signup and view all the answers

In business, what does 'adding value' refer to?

Improving customer experience without increasing cost Signup and view all the answers

What is a major characteristic of successful businesses mentioned in the text?

Creating and maintaining competitive advantage Signup and view all the answers

What is revenue in a business context?

Money that a company brings in through the sale of goods and services Signup and view all the answers

Which term describes the money left over after all business costs have been deducted from the revenue?

Profit Signup and view all the answers

What is a competitive advantage in business?

The aspect of a product or company that makes it more appealing to its target customers Signup and view all the answers

What do goods-producing businesses typically focus on?

Making tangible products Signup and view all the answers

Why are service businesses considered labor-intensive?

Because they perform activities that require human effort Signup and view all the answers

In the context of business, what is meant by 'barrier to entry'?

Resource or capability a company must have before competing in a market Signup and view all the answers

Which functional area of a business is responsible for conceiving and designing new products?

Research and development (R&D) Signup and view all the answers

What is the primary responsibility of the finance and accounting department in a business?

Ensuring the company has necessary funds, monitoring spending, and financial reporting Signup and view all the answers

What is the role of human resources (HR) in a business?

Recruiting, hiring, developing, and supporting employees Signup and view all the answers

What do service businesses primarily focus on delivering?

Intangible benefits to customers Signup and view all the answers