Podcast
Questions and Answers
Which of the following is the BEST example of a business operating in the 'secondary' industry sector?
Which of the following is the BEST example of a business operating in the 'secondary' industry sector?
- A bakery that produces bread from wheat. (correct)
- A coal mining company extracting raw materials.
- A financial firm offering investment advice.
- A university conducting scientific research.
A sole trader business structure offers the advantage of limited liability, protecting the owner's personal assets from business debts.
A sole trader business structure offers the advantage of limited liability, protecting the owner's personal assets from business debts.
False (B)
Name three external economic influences that can significantly impact a business's operations and profitability.
Name three external economic influences that can significantly impact a business's operations and profitability.
Interest rates, inflation, exchange rates
A business expands its operations to several countries and tailors its products to suit local preferences is considered a ______ business.
A business expands its operations to several countries and tailors its products to suit local preferences is considered a ______ business.
Match each business type with its primary characteristic:
Match each business type with its primary characteristic:
Which of the following internal influences encompasses the shared values, beliefs, and norms that shape employee behavior and decision-making within a business?
Which of the following internal influences encompasses the shared values, beliefs, and norms that shape employee behavior and decision-making within a business?
Technological advancements always have a positive influence on all businesses, regardless of their adaptability.
Technological advancements always have a positive influence on all businesses, regardless of their adaptability.
What are three benefits that businesses create for society?
What are three benefits that businesses create for society?
The sector of industry involved in generating or extracting raw materials, such as agriculture, fishing, forestry and mining, is called the ______ sector.
The sector of industry involved in generating or extracting raw materials, such as agriculture, fishing, forestry and mining, is called the ______ sector.
Which factor primarily differentiates a 'quaternary' industry from a 'tertiary' industry?
Which factor primarily differentiates a 'quaternary' industry from a 'tertiary' industry?
Flashcards
Producing goods and services
Producing goods and services
Creating tangible items or providing services to satisfy consumer needs and wants.
Profit
Profit
Surplus revenue after deducting all expenses; a key motivator for businesses.
Employment
Employment
Jobs created by businesses, providing individuals with income.
Income
Income
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Choice
Choice
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Innovation
Innovation
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Entrepreneurship and risk
Entrepreneurship and risk
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Size (SME's, Large)
Size (SME's, Large)
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Local, National, Global
Local, National, Global
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Industry type (Primary, Secondary, Tertiary, Quaternary, Quinary)
Industry type (Primary, Secondary, Tertiary, Quaternary, Quinary)
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Study Notes
- Businesses exist to produce goods and services
- They contribute to profit, employment, income, choice, innovation, entrepreneurship, wealth creation, and quality of life.
Classification of Businesses
- Size can range from small to medium enterprises (SMEs) to large corporations.
- Operation can be local, national, or global.
- Industry sectors include primary, secondary, tertiary, quaternary, and quinary.
- Legal structures include sole proprietorships, partnerships, private companies, public companies, and government enterprises.
Factors Influencing Legal Structure
- Business size, desired ownership arrangements, and financing needs affect the choice of legal structure.
Influences in the Business Environment
- External factors: Economic conditions, financial markets, geographic location, social trends, legal and political regulations, institutional frameworks, technological advancements, competitive landscape, and target markets all exert influence.
- Internal factors: Products offered, location, available resources, management practices, and organizational culture are key internal influences.
- Stakeholders: Various stakeholders impact businesses.
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