10 Questions
Which type of income is based on a yearly sum?
Salary
What does the term 'fringe benefits' refer to in relation to employee income?
Additional benefits supplementing an employee's wage
How does the concept of choice impact businesses?
It encourages businesses to provide goods and services at competitive prices
What defines an entrepreneur according to class notes?
A person willing to take risks to implement new ideas through a business
What does 'wealth' refer to in the context of businesses?
The total value of assets owned by a person or business
What is the primary focus of the economic role of a business?
Financial impact of business activities
Why is profitability crucial for the long-term survival of a business?
To meet day-to-day expenses
How does employment in businesses contribute to the overall economy?
By increasing the profitability of other businesses
What is the main purpose of a business?
To create value for customers at an acceptable price
Why does a business providing income play a significant function?
To help employees meet their needs and wants
Study Notes
Types of Income
- Salary is a type of income based on a yearly sum.
Employee Income
- Fringe benefits refer to additional advantages or perks that an employer provides to employees, such as health insurance, retirement plans, or free meals.
Business and Choice
- The concept of choice allows businesses to respond to consumer preferences, innovate, and differentiate themselves from competitors.
Entrepreneurship
- An entrepreneur is an individual who takes on the risk of starting and running a business to earn a profit.
Wealth and Business
- Wealth refers to the total value of assets owned by an individual or business, including money, property, and other possessions.
Economic Role of a Business
- The primary focus of a business's economic role is to create goods and services to meet the needs of customers.
Profitability and Survival
- Profitability is crucial for the long-term survival of a business because it enables the business to invest in growth, pay expenses, and reward stakeholders.
Employment and the Economy
- Employment in businesses contributes to the overall economy by generating income, creating tax revenue, and stimulating economic growth.
Purpose of a Business
- The main purpose of a business is to create value for customers, generating revenue and profits in the process.
Income and Business Significance
- A business providing income plays a significant function because it enables individuals to meet their basic needs, save for the future, and invest in other economic activities.
Explore the economic and social roles of businesses in producing goods and services for consumers. Learn about the financial and community impacts of business activities.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
