Intro to Business Unit 2

Which functional area of a business is responsible for converting the factors of production into goods and services?

Operations

Alice takes her car to the dealership for a routine scheduled maintenance i.e., oil change, filter change, lubrication, and tire rotation. Alice receives a call from the dealership later that day stating that the technician discovered serious wear in her two front tires during the rotation and recommends replacing the tires. Alice agrees and tells the dealership that she will purchase two new tires and asks if they can be installed by the time she picks up her vehicle. Has the dealership provided a good or a service for Alice?

The dealership has provided both a good and a service.

Management is the process of guiding the development, maintenance, and allocation of objectives.

True

The local community is an external stakeholder.

True

How do we define the term "business"?

A business is any activity that provides goods or services to customers for the purpose of making a profit.

What is the primary difference between a good and a service?

A good is tangible, a service is intangible

Internal stakeholders are groups outside a business or people who don't work inside the business but are affected in some way by the decisions and actions of the business.

False

Suppliers are internal stakeholders.

False

_____ is the amount of money remaining from a firm's sales revenue after it deducts production costs, interest costs, and taxes.

Profit

The purpose of a for-profit business is:

Return profits to the owners of the business.

External stakeholders consist of

Shareholders, customers, suppliers, community, and government.

Which of the following is the BEST example of a not-for-profit business?

The American Cancer Society

What are the four functions of management?

planning, organizing, leading, controlling

The purpose of a nonprofit business is:

Direct any and all profits to a charitable cause, service, or organization dedicated to helping others.

Cathy starts a mobile car detailing business. After some initial growth, she hires two workers to help her keep up with customer demand. Cathy supplies the materials (soap, wax, etc.) for the operation which, in addition to paying the employees, constitutes her operating expenses. Cathy's revenues exceed her expenses and she donates 10% of her profits from her bank account to the local Humane Society. Is Cathy's business a for-profit or nonprofit?

It is a for-profit.

Sea-Worthy is an ocean-shipping company. The company decided to develop their own internal ERP (Enterprise Resource Management) system since none of the existing commercial packages met the specific needs of their unique business segment. Halfway into development by their IT department, the company came to the realization that this system could be licensed to their competitors to offset their development cost and fund future enhancements. Which functional area of the company would be responsible for creating revenue from this internal system?

Marketing

Triangle.com has decided to implement a new, comprehensive Accounting system that takes advantage of cloud technology. Which of the following groups would be considered the primary stakeholder for this project?

The Finance department.

A business is an organization that strives for a profit by providing goods and services desired by its customers.

True

A stakeholder is an individual or group that has a legitimate interest in a company, organization, or business.

True

The terms "profit," "loss," and "value" can be described respectively as

When revenue exceeds costs; when costs exceed revenue; the perceived benefits by a customer of price to the time and money spent.