3.1.1 Understanding the nature and purpose of business

• Businesses transform inputs into goods or services for customers.

  True
• Arrange the key characteristics of a business in a logical order.

  1️⃣ Organization

  2️⃣ Use of resources

  3️⃣ Production of goods/services

  4️⃣ Profit motive
• Businesses utilize capital, labor, and raw materials to produce outputs
• Businesses transform inputs into goods or services for customers
• What is the primary goal of a public business?

  Provide essential services
• What is the role of labor in a business?

  Input for production
• What is the primary characteristic of a business as an organization?

  Coordinates resources
• What is the profit motive of a business?

  Financial surplus
• Why is profit generation essential for a business?

  Sustainability and growth
• Match the benefit of profit with its description:

  Sustainability ↔️ Covers operating expenses

  Growth ↔️ Funds expansion and investment

  Employee compensation ↔️ Boosts morale and productivity
• Addressing environmental and social issues can help ensure a business's long-term sustainability.


  True
• What is a business defined as in this material?

  An organization exchanging resources for profit
• What is the primary aim of a business in terms of financial surplus?

  Profit motive
• A business is an organization that uses resources to create goods or services for profit.


  True
• The profit motive in a business involves selling outputs at a price higher than their costs.


  True
• Why is profit essential for a business?

  Sustainability and growth
• Private businesses focus on competition and customer satisfaction to maximize profits
• Businesses aim to generate a financial surplus by selling their outputs at a price higher than their costs
• Businesses utilize inputs such as capital, labor, and raw materials to produce outputs
• Businesses create goods or services to satisfy consumer demands
• Public businesses are owned and operated by the government
• What does social responsibility in business refer to?

  Considering society and environment
• What is an example of community engagement in socially responsible business practices?

  Supporting local charities
• Businesses utilize various inputs such as capital, labor, and raw materials
• What does the "organization" characteristic of a business refer to?

  Structured coordination of resources
• What are the three main resources businesses use to produce outputs?

  Capital, labor, and raw materials
• Goods are tangible items, while services are intangible activities.


  True
• Public businesses are funded by tax revenues.


  True
• The production of goods or services is a key characteristic of a business.

  True
• Businesses transform inputs into goods or services to sell to customers.


  True
• Businesses address specific consumer needs and wants by offering products with utility or enjoyment.

  True
• Private businesses aim for profit maximization, while public businesses focus on providing essential services.


  True
• Socially responsible practices can enhance a business's public image and reputation
• By embracing social responsibility, businesses create value for both shareholders and the wider society.

  True