BUSINESS MANAGEMENT CHAPTER 1 QUESTIONS AND ASWERS A+
GRADED. Buy Quality Materials!
Primary sector
Involves the extraction and harvesting of raw materials
Secondary sector
Involves manufacturing and construction of products
Tertiary sector
Specialise in providing services to the general population
Quaternary sector
A subcategory of tertiary sector which involves intellectual and knowledge base
research
Chain of production
Production-Manufacturing-Services-Consumers
Sectoral change
A shift in the relative share of national output and employment in each sector
Factors leading to sectoral change
1. Higher household income
2. Higher standards of living
3. Greater focus on customer service
4. Increase reliance on support service
Intrapreneur
An employee who thinks and acts as an entrepreneur within the section of the
organisation
Entrepreneur
An individual who plans, organises, and manages the business, taking on financial risks
in doing so
Reasons for starting up a business
1. Earnings
2. Growth(i.e capital growth of asset overtime)
3. Transference and Inheritance
4. Challenge
5. Autonomy(Doesn't want to work for someone else)
6. Security(More job security)
7. Hobbies
Steps to business start up
1. Write a business plan
2. Obtain a start up capital
3. Obtain business registration
4. Open a business bank account
5. Marketing
Factors to consider when starting up a business
1. Finance
2. Human resource
, 3. Enterprise
4. Fixed assets
5. Suppliers
6. Customers
7. Marketing
8. Legal issues
Problems that a new business can face
1. Lack of finance
2. Cash flow problems
3. Marketing problems
4. Unestablished customer base
5. People management problems
6. Legalities(insurance cover for staff, business registration)
7. High production costs
8. Poor location
CUEGIS
Change
Culture
Ethics
Globalisation
Innovation
Strategy
Private sector
Owned and controlled by private individuals and business
Public sector
Under the ownership and control of the government
Sole trader
An individual runs and owns a personal business
Unincorporated
Owner is the same legal entity as the business
Partnership
Business owned by 2 to 20 people
Advantages of sole trader
1. Few legal formalities
2. Profit taking(Don't need to share profit)
3. Being your own boss
4. Personalised service(Provide a personalised service to customers)
5. Privacy(They do not have to make financial record known to the public)
Disadvantage of sole trader
1. Unlimited liability
2. Limited sources of finance
3. High risks of failure
4. Workload and stress
5. Limited economies of scale
6. Lack of continuity(Running of business cannot continue if owner is away i.e on
holiday)
GRADED. Buy Quality Materials!
Primary sector
Involves the extraction and harvesting of raw materials
Secondary sector
Involves manufacturing and construction of products
Tertiary sector
Specialise in providing services to the general population
Quaternary sector
A subcategory of tertiary sector which involves intellectual and knowledge base
research
Chain of production
Production-Manufacturing-Services-Consumers
Sectoral change
A shift in the relative share of national output and employment in each sector
Factors leading to sectoral change
1. Higher household income
2. Higher standards of living
3. Greater focus on customer service
4. Increase reliance on support service
Intrapreneur
An employee who thinks and acts as an entrepreneur within the section of the
organisation
Entrepreneur
An individual who plans, organises, and manages the business, taking on financial risks
in doing so
Reasons for starting up a business
1. Earnings
2. Growth(i.e capital growth of asset overtime)
3. Transference and Inheritance
4. Challenge
5. Autonomy(Doesn't want to work for someone else)
6. Security(More job security)
7. Hobbies
Steps to business start up
1. Write a business plan
2. Obtain a start up capital
3. Obtain business registration
4. Open a business bank account
5. Marketing
Factors to consider when starting up a business
1. Finance
2. Human resource
, 3. Enterprise
4. Fixed assets
5. Suppliers
6. Customers
7. Marketing
8. Legal issues
Problems that a new business can face
1. Lack of finance
2. Cash flow problems
3. Marketing problems
4. Unestablished customer base
5. People management problems
6. Legalities(insurance cover for staff, business registration)
7. High production costs
8. Poor location
CUEGIS
Change
Culture
Ethics
Globalisation
Innovation
Strategy
Private sector
Owned and controlled by private individuals and business
Public sector
Under the ownership and control of the government
Sole trader
An individual runs and owns a personal business
Unincorporated
Owner is the same legal entity as the business
Partnership
Business owned by 2 to 20 people
Advantages of sole trader
1. Few legal formalities
2. Profit taking(Don't need to share profit)
3. Being your own boss
4. Personalised service(Provide a personalised service to customers)
5. Privacy(They do not have to make financial record known to the public)
Disadvantage of sole trader
1. Unlimited liability
2. Limited sources of finance
3. High risks of failure
4. Workload and stress
5. Limited economies of scale
6. Lack of continuity(Running of business cannot continue if owner is away i.e on
holiday)
