chapter 1

Question 1

define business

Answer 1

profit-seeking organization that provides goods/services to satisfy customers needs.

Question 2

Describe the concept of adding value to a business

Answer 2

• transforms lower value inputs to high value outputs, making them more attractive for buyers to purchase.

Question 3

define revenue

Answer 3

• amount of money company brings by goods + services

Question 4

define business model

Answer 4

model that describes how a company will make revenue

Question 5

define profit

Answer 5

revenue-costs

Question 6

define competitive advantage

Answer 6

appeals more to target audience, more likely to purchase from your business.

Question 7

4 ways to categorize a business

Answer 7

1. product type: can be: (goods or services)
2. geographical reach (local, regional, international)
3. company size: big or small scale
4. ownership:
   - solo praetorships: one owner
   - partnerships: several owners
   - corporations: thousands of owners

Question 8

relationship between risks, rewards and moral hazard

Answer 8

• companies need to make risks with a reward
• if if goes well company benefits, if not they suffer the consequence.
• However, when this relationship is broken ( risk gets disconnected)–> moral hazard as someone else suffers consequences

Question 9

Define buisness mindset

Answer 9

inside view of buisness with appreciation of the decisions to be made and challengers that managers face.

Question 10

positive effects of the role of business in society

Answer 10

1. offers valuable goods/services
2. provides employment
3. national growth/stability/ security

Question 11

negative effects of the role of business in society

Answer 11

1. pollution and waste
2. health +safety risks
3. disrupts communities
4. financial isntability

Question 12

define the social environment

Answer 12

trends and forces in society at large

Question 13

Discuss the 5 major environments in which a business operates

Answer 13

1. economic environment–> the conditions that affect the cost and availability of goods and services
2. social environment: trends affecting society
3. technological: ability to create/ destroy markets (eg AI)
4. market environment: (1) target customers, (2 )buying influences and (3) competitors
5. legal and regulatory environment: laws and regulations affecting business

Question 14

define gig economy

Answer 14

portion of economy of people working as independent contractors in short-term projects

Question 15

define barriers of entry

Answer 15

resources/skills company has before entering market

Question 16

The 6 functional areas in business

Answer 16

1. R&D–> designing new products
2. Manufactuing, production operations
3. marketing, sales, distribution and customer service.
4. finance and accounting
5. Human resources
6. Business services

Question 17

The seven most important business careers

Answer 17

1. operations manager
2. human resource specialist
3. IT manager
4. marketing specialist
5. sales professional
6. accountant
7. financial manager

Question 18

The 6 components of professionalism

Answer 18

1. strive to excel
2. dependence +accountable
3. being a team player
4. etiquette
5. communicate efficiently
6. making ethical decisions

Question 19

define digital enterprise

Answer 19

company using digital system as one of its foundations of its value-creation process

Question 20

define disruptive innovation

Answer 20

development so fundamentally different that it can create new professions, companies or entire industries while damaging others.
Example: AI

Question 21

define digital transformation

Answer 21

process of reimagining a company´s business model to become a digital enterprise.

Question 22

skills required for business

Answer 22

• communication
• critical thinking
• collaboration
• knowledge +analysis
• business ethics
• information technology
• data literacy

Question 23

describe the gartner hype cycle

Answer 23

• maps the evolutions of innovations over time
• starts when innovation starts
• media builds in expectations
• no potential–> trough of disillusionment
  potential–> slope of enlightment
  -