p.4
Basic Concepts of Business
What are wants in the context of business?
Wants are the things you 'wish' you could have.
p.36
Non-Profit Organizations
Can non-profit organizations provide goods or services?
Yes, they can provide goods or services.
p.17
Management Functions and Skills
What are technical skills in management?
Skills directly related to the work and industry the business is in.
p.19
Management Functions and Skills
What is the Informational Role of a manager?
It involves being a messenger and communicator to ensure correct information reaches the right audience.
p.35
Microenvironment vs. Macroenvironment
What are the two main types of environments in business?
Microenvironment and Macroenvironment.
p.15
Management Functions and Skills
What does planning involve in management?
Setting objectives and finding the most optimum ways of achieving them.
p.3
Basic Concepts of Business
What does a business consist of?
Individuals or organizations trying to earn a profit.
p.43
Types of Economic Systems
What is socialism in the context of a mixed economy?
An economic system where the government owns and operates basic industries while individuals own most businesses.
p.19
Management Functions and Skills
What does the Interpersonal Role of a manager entail?
It involves getting employees to work as a team and improving their social skills among colleagues.
p.2
Basic Concepts of Business
Why is studying business important?
To understand the main participants and activities of business.
p.47
Types of Economic Systems
What employment options are available in Socialism?
More choice of careers; many people work in government jobs.
p.52
Business Environment Factors
What role does competition play in the business environment?
It is one of the external factors that influence business operations.
p.52
Business Environment Factors
How does digital technology affect businesses?
It is a key component of the external environment impacting business operations.
p.37
Non-Profit Organizations
Who owns for-profit organizations?
Individuals, partners, or shareholders.
p.3
Basic Concepts of Business
How do businesses aim to earn a profit?
By providing products that satisfy people's needs.
p.23
Microenvironment vs. Macroenvironment
What is the difference between microenvironment and macroenvironment?
Microenvironment refers to the immediate environment affecting a business, while macroenvironment includes broader societal forces.
p.27
Management Functions and Skills
Who are the employees in the context of the internal environment?
Individuals performing tasks to help achieve organizational objectives.
p.5
Basic Concepts of Business
How are goods defined in relation to wants and needs?
Goods can be physically weighed or measured and satisfy wants and needs for material things.
p.27
Management Functions and Skills
Who are shareholders in a business?
Individuals that provide the capital to start the business.
p.20
Basic Concepts of Business
How do goods differ from services in terms of output?
Goods are tangible products, while services are intangible activities.
p.52
Business Environment Factors
What constitutes the external environment of a business?
Competition, the economy, digital technology, legal, political and regulatory forces, and social responsibility and ethics.
p.38
Factors of Production
How is technology defined in the context of production?
Digital technology or computerization.
p.12
Factors of Production
What are the six resources (6Ms) involved in the value-added transformation process?
Man, Money, Machine, Methods, Materials, Management.
p.28
Business Environment Factors
What are the two main components of the external environment in business?
General environment and task environment.
p.48
Supply and Demand Dynamics
What does demand refer to?
The amount of goods and services that consumers are willing to buy at different prices at a specific time.
p.47
Types of Economic Systems
What is the product availability and price situation in Communism?
Consumers have a limited choice of goods and services; prices are usually high.
p.23
Business Environment Factors
What factors are included in the internal environment of a business?
Factors such as company culture, management, and internal resources.
p.6
Basic Concepts of Business
What sectors are impacted by the issue of unlimited wants?
Businesses and government.
p.34
Microenvironment vs. Macroenvironment
What does PESTEL stand for in the context of macroenvironment?
Political, Economic, Social, Technological, Environmental, and Legal factors.
p.50
Globalization and International Business
What is globalization in the context of business?
International business taken to a worldwide platform.
p.24
Microenvironment vs. Macroenvironment
What does the general environment encompass?
Broad economic, socio-cultural, political/legal, demographic, technological, and global conditions that may affect the organization.
p.51
Basic Concepts of Business
What role does experience play in business success?
It is one of the essential components for success.
p.37
Non-Profit Organizations
What is done with profits in non-profit organizations?
Profits are used to further the mission of the organization.
p.46
Types of Economic Systems
How are profits handled in socialism?
The government supports social and economic institutions with the profits.
p.23
Business Environment Factors
What are the two main types of business environments?
Internal and External Environments.
p.39
Types of Economic Systems
What are the three most common types of economic systems?
Communism, Socialism, and Capitalism.
p.8
Basic Concepts of Business
How can businesses contribute to personal wealth?
By providing opportunities for individuals to become wealthy.
p.41
Types of Economic Systems
Who owns and operates businesses in a communist economy?
The people, but businesses are allocated through the government.
p.52
Basic Concepts of Business
Who are the main stakeholders in the business world?
Owners, employees, and customers.
p.15
Management Functions and Skills
What is the purpose of organizing in management?
Delegating tasks, dividing resources, and coordinating activities to complete outputs.
p.24
Microenvironment vs. Macroenvironment
What is the specific/task environment?
External forces that have a direct and immediate impact on the organization.
p.47
Types of Economic Systems
What is the employment situation in Capitalism?
Unlimited choice of careers.
p.20
Basic Concepts of Business
What is a key characteristic of goods as an output?
They can be stored and inventoried.
p.44
Types of Economic Systems
How much government interference is there in businesses under capitalism?
There is minimum government interference in how businesses are run.
p.46
Types of Economic Systems
How is competition controlled in a communist economy?
Government controls competition and the economy.
p.46
Types of Economic Systems
How is competition encouraged in capitalism?
Competition is encouraged by market forces and government regulations.
p.9
Basic Concepts of Business
What mindset should businesses adopt according to the text?
Businesses should change their mindsets and offer solutions, not merely products.
p.4
Basic Concepts of Business
Can wants be shared among people?
Yes, a group of people may share the same wants.
p.4
Basic Concepts of Business
How are shared wants categorized?
They are considered private wants.
p.6
Basic Concepts of Business
How do resources affect purchasing decisions?
Resources limit what you can buy.
p.5
Basic Concepts of Business
What are considered 'needs' in the context of business?
Necessary wants such as food, shelter, and clothing.
p.49
Types of Economic Systems
What defines service and digital economies?
A focus on providing services and digital products.
p.2
Basic Concepts of Business
What are basic concepts in business?
Business, product, and profit.
p.19
Management Functions and Skills
Why is effective communication important in a manager's Informational Role?
To lessen mistakes by ensuring correct information reaches the right audience.
p.21
Basic Concepts of Business
Give three examples of intangible products.
1. Insurance 2. Consulting services 3. Software applications
p.15
Management Functions and Skills
What is the role of leading in management?
To motivate and inspire workers to improve productivity.
p.15
Management Functions and Skills
What is the purpose of controlling in management?
To monitor adherence to planned methods and take corrective action if necessary.
p.12
Management Functions and Skills
What are the main management functions in the value-added transformation process?
Planning, Organizing, Staffing, Leading, Controlling.
p.44
Supply and Demand Dynamics
What determines prices in a capitalist economy?
Prices are determined by supply and demand.
p.37
Non-Profit Organizations
Are profits from for-profit organizations subject to taxation?
Yes, they are subject to taxation by local, state, and federal authorities.
p.3
Value-Added Transformation Process
What is the primary objective of business organizations?
To conduct value-added transformation activities by combining input resources into finished products effectively, efficiently, and competitively.
p.39
Types of Economic Systems
What is an economic system?
It describes how the factors of production are used to manufacture goods and services for a particular society.
p.38
Basic Concepts of Business
What is the primary focus of economics?
The study of how resources are distributed and used for the production of goods and services within a social system.
p.48
Supply and Demand Dynamics
What is the equilibrium price?
The price at which the number of products that businesses are willing to supply equals the amount that consumers are willing to buy at a specific point in time.
p.29
Microenvironment vs. Macroenvironment
Who are the primary stakeholders in the task environment?
Customers, suppliers, distributors, and competitors.
p.12
Value-Added Transformation Process
What is the primary purpose of the value-added transformation process in business?
To manufacture finished goods, products, and services effectively, efficiently, and competitively.
p.51
Basic Concepts of Business
Why is good judgment important in business?
It contributes to making effective decisions.
p.12
Value-Added Transformation Process
What does 'throughput' refer to in the value-added transformation process?
The value-adding transformation of inputs into finished goods and services.
p.12
Value-Added Transformation Process
How does a business aim to be competitive in the value-added transformation process?
By performing better than rivals.
p.28
Business Environment Factors
What does the general environment in business refer to?
The broader societal factors that affect an organization.
p.8
Basic Concepts of Business
What do businesses provide?
Necessities (things you need) and the opportunity to become wealthy.
p.49
Types of Economic Systems
What characterizes an industrialized economy?
A focus on manufacturing and production processes.
p.6
Basic Concepts of Business
Who is affected by the problem of unlimited wants and limited resources?
Individuals, companies, and nations.
p.47
Types of Economic Systems
How does product availability and pricing work in Socialism?
Consumers have some choice of goods and services; prices are determined by supply and demand.
p.35
Microenvironment vs. Macroenvironment
What factors are included in the Macroenvironment?
Political, Economical, Socio-Cultural, Technological, and Legal factors.
p.20
Basic Concepts of Business
What are the main types of output in a business context?
Goods, services, and information.
p.19
Management Functions and Skills
How does a manager improve team dynamics in their Interpersonal Role?
By fostering teamwork and enhancing social skills among employees.
p.35
Microenvironment vs. Macroenvironment
What is the focus of the Task Environment?
Direct interactions with customers, suppliers, and competitors.
p.44
Types of Economic Systems
What is capitalism?
An economic system where individuals own and operate the majority of businesses that provide goods and services.
p.13
Basic Concepts of Business
What is a product?
A good or service with tangible and intangible characteristics that provide satisfaction and benefits.
p.13
Basic Concepts of Business
What does value refer to in a business context?
The satisfaction and benefits derived from a product or service.
p.36
Non-Profit Organizations
What is the primary purpose of non-profit organizations?
To provide goods or services without the fundamental purpose of earning profits.
p.11
Basic Concepts of Business
What is the significance of the term 'Sales Delta'?
It refers to the change or difference in sales over a specific period.
p.41
Types of Economic Systems
What does Karl Marx describe communism as?
A society where the people own the nation’s resources regardless of class status.
p.48
Supply and Demand Dynamics
What is supply?
The amount of goods and services that businesses are willing to sell at different prices at a specific time.
p.29
Microenvironment vs. Macroenvironment
What is included in the task environment of a business?
Customers, suppliers, distributors, competitors, publics, financial institutions, and local governments.
p.38
Factors of Production
What does 'capital' refer to in business economics?
Financial resources needed to start up the business.
p.29
Microenvironment vs. Macroenvironment
What role do financial institutions play in the task environment?
They provide funding and financial services to businesses.
p.50
Globalization and International Business
How has connectivity in hand-held devices influenced consumer patterns?
It has made the influence of consumer patterns immediate.
p.2
Business Environment Factors
What elements in the business environment can affect organizations?
Economic, social, technological, and political factors.
p.44
Types of Economic Systems
What is the level of government ownership in a capitalist system?
Government ownership of businesses is at a minimum.
p.9
Basic Concepts of Business
What is the primary aim of businesses?
To offer finished products as solutions for target customers with the aim of earning profits.
p.17
Management Functions and Skills
What are human skills in management?
Emotional and psychological skills needed to understand employees and build relationships.
p.27
Management Functions and Skills
What does the internal environment of a business refer to?
Any party or factor within the business organization.
p.41
Types of Economic Systems
How do individuals contribute and receive benefits in a communist society?
Everyone contributes according to ability and receives benefits according to need.
p.21
Basic Concepts of Business
Give three examples of tangible products.
1. Cars 2. Furniture 3. Clothing
p.24
Business Environment Factors
What is the external environment in a business context?
Factors and forces outside the organization that affect its performance.
p.52
Management Functions and Skills
What are the main functions of a business organization?
Finance, marketing, and management.
p.35
Microenvironment vs. Macroenvironment
What does the term 'General Environment' refer to?
The broader context that includes political, economic, socio-cultural, technological, and legal factors.
p.37
Non-Profit Organizations
What type of organization incurs expenses for operations?
Both for-profit and non-profit organizations incur expenses for operations.
p.46
Types of Economic Systems
Who owns most businesses in a communist system?
Most businesses are owned and operated by the government.
p.12
Management Functions and Skills
What roles do managers play in the value-added transformation process?
Informational, Interpersonal, Decisional.
p.17
Management Functions and Skills
What are the four key competences needed for effective management?
Conceptual skills, human skills, technical skills, and political skills.
p.17
Management Functions and Skills
What do conceptual skills in management involve?
Cognitive skills including creativity, analysis, comprehension, insight, and judgement.
p.6
Basic Concepts of Business
What is the fundamental economic problem discussed in Chapter 1?
The problem of unlimited wants and limited resources.
p.8
Basic Concepts of Business
What is one of the main roles of businesses?
To fulfill the needs of consumers.
p.17
Management Functions and Skills
What is the purpose of political skills in management?
To establish and win support from employees for smoother management operations.
p.34
Microenvironment vs. Macroenvironment
What components make up the microenvironment?
Internal Environment + Task Environment.
p.23
Business Environment Factors
What factors are considered part of the external environment?
Factors such as economic conditions, competition, and regulatory policies.
p.41
Types of Economic Systems
What is a characteristic of consumer choice in a communist economy?
Consumers have a limited choice of goods and services.
p.38
Factors of Production
What role does entrepreneurship play in business?
Individuals who are creative, innovative, and motivated to take calculated risks to earn profits.
p.51
Basic Concepts of Business
What is essential for success in business?
Knowledge, skills, experience, and good judgment.
p.46
Types of Economic Systems
What is the primary characteristic of business ownership in capitalism?
Individuals own and operate all businesses.
p.7
Basic Concepts of Business
What is the definition of business?
Any activity that seeks profit by providing goods or services to others.
p.28
Business Environment Factors
What is the task environment in business?
The specific external factors that directly impact an organization’s operations.
p.34
Microenvironment vs. Macroenvironment
What does the microenvironment refer to?
Any individual(s) or factors that have a direct and short-term impact on the business organization.
p.49
Types of Economic Systems
What are manufacturing and marketing economies focused on?
The production of goods and their promotion to consumers.
p.43
Types of Economic Systems
How does competition function in a mixed economy under socialism?
Competition is restricted in basic industries but encouraged in small businesses.
p.47
Types of Economic Systems
What is the product availability and pricing like in Capitalism?
Consumers have a wide choice of goods and services; prices are determined by supply and demand.
p.21
Basic Concepts of Business
What are intangible products?
Services or experiences that cannot be physically touched.
p.20
Basic Concepts of Business
What role does information play as an output in businesses?
Information helps in decision-making and enhances customer experience.
p.2
Types of Economic Systems
What is economics?
The study of how societies use scarce resources to produce valuable commodities.
p.12
Management Functions and Skills
What skills are essential for effective management?
Conceptual, Human, Technical, Political.
p.37
Non-Profit Organizations
Are profits from non-profit organizations subject to taxation?
No, they are not subject to taxation by local, state, and federal authorities.
p.11
Basic Concepts of Business
What does 'T Selling' imply in a business context?
It typically refers to a specific strategy or method of selling.
p.34
Microenvironment vs. Macroenvironment
What is the macroenvironment?
Any factor that has an indirect and long-term impact on a business organization, equivalent to the General Environment, including PESTEL factors.
p.21
Basic Concepts of Business
What are tangible products?
Physical items that can be touched and seen.
p.27
Management Functions and Skills
What role does management play in the internal environment?
Planning, implementing, and evaluating activities.
p.19
Management Functions and Skills
What is the Decisional Role of a manager?
It requires making decisions that are perceived as fair and equal, and making quick decisions based on changing circumstances.
p.35
Microenvironment vs. Macroenvironment
What elements are part of the Microenvironment?
Customers, Suppliers, Distributors, Competitors, Publics, Financial Institutions, Local governments, Employees, Management, Shareholders, and Organisational Culture.
p.27
Management Functions and Skills
What is organizational culture?
The way in which work is carried out in the organization.
p.2
Value-Added Transformation Process
What is the value-added transformation process?
A process that adds value to inputs to create outputs.
p.37
Non-Profit Organizations
How do non-profit organizations generate revenues?
Through sales and/or contributions.
p.46
Types of Economic Systems
How does socialism differ from communism in terms of business ownership?
In socialism, the government owns and operates some basic industries, while individuals own small businesses.
p.13
Basic Concepts of Business
How is profit related to products?
Profit is the financial gain obtained from selling products or services after costs are deducted.
p.46
Types of Economic Systems
What happens to excess income in a communist system?
Excess income goes to the government.
p.5
Basic Concepts of Business
What is the primary function of goods in business?
To satisfy wants and needs for material things.
p.47
Types of Economic Systems
What are the employment options in Communism?
Little choice in choosing a career; most people work for government-owned industries or farms.
p.15
Management Functions and Skills
What does staffing entail in the context of management?
Looking for, securing, training, and developing the right person for the job.
p.29
Microenvironment vs. Macroenvironment
How do local governments influence the task environment?
They regulate business operations and provide local support.
p.29
Microenvironment vs. Macroenvironment
What are publics in the context of the task environment?
Groups that have an interest or impact on the business, such as media and community organizations.
p.52
Business Environment Factors
Why is social responsibility important for businesses?
It is part of the external environment that influences ethical practices.
p.37
Non-Profit Organizations
Who operates non-profit organizations?
A board of directors, trustees, or managers.
p.46
Types of Economic Systems
What is the approach to competition in socialism?
Competition is restricted in basic industries but encouraged in small business.
p.46
Types of Economic Systems
What can individuals do with profits in a capitalist system?
Individuals and businesses are free to keep profits after paying taxes.
p.2
Types of Economic Systems
What are the four types of economic systems?
Traditional, command, market, and mixed economies.
p.37
Non-Profit Organizations
What is done with profits in for-profit organizations?
Profits are used to pay owners, partners, or shareholders.
p.44
Types of Economic Systems
What choice do consumers have in a capitalist system?
Consumers have a wide choice of goods and services.
