Understanding Business Concepts

What is the primary purpose of a business?

• To provide employment opportunities.

• To create innovative products.

• To enhance customer satisfaction.

• To generate profit.

Name two activities that businesses engage in.

• Selling products online

• Conducting market research

• Hiring employees

• Producing goods, Providing services

How do businesses create value for customers?

• By focusing solely on profit margins rather than customer satisfaction.

• By meeting customer needs and enhancing their experience.

• By increasing prices without improving quality.

• By ignoring customer feedback and preferences.

What is a sole proprietorship?

• A sole proprietorship is a corporation with limited liability.

• A sole proprietorship is a business owned and operated by one person, with unlimited personal liability.

• A sole proprietorship is a business owned by multiple partners.

• A sole proprietorship is a non-profit organization run by a board.

How can businesses sustain operations over time?

• By focusing solely on short-term profits.

• By ignoring market trends and customer feedback.

• By reducing employee salaries and benefits.

• By implementing strategic planning and adaptability.