Understanding Business Concepts

What is Corporate Social Responsibility (CSR)?

• A method for reducing employee benefits and wages.

• Corporate Social Responsibility (CSR) is the commitment of businesses to contribute to sustainable economic development while improving the quality of life of the workforce, their families, the local community, and society at large.

• A strategy for maximizing profits at any cost.

• A legal requirement for all corporations to follow.

Why is CSR important for businesses?

• CSR has no impact on employee satisfaction.

• CSR is only a legal requirement for businesses.

• CSR is important for businesses as it improves reputation, builds customer loyalty, and attracts talent.

• CSR primarily focuses on reducing costs.

How can businesses implement CSR initiatives?

• By outsourcing all operations to cut costs.

• By ignoring community needs and focusing solely on sales.

• Businesses can implement CSR initiatives by integrating social and environmental considerations into their operations and strategies.

• By reducing employee salaries to increase profits.

Define business in your own words.

• A business is a place where people socialize.

• A business is an organization that only sells products without services.

• A business is an organization that provides goods or services to generate profit.

• A business is a type of hobby that doesn't require profit.

What are the main objectives of a business?

• Increasing production costs

• Limiting market reach

• Reducing employee benefits

• Maximizing profit, ensuring customer satisfaction, achieving growth, and providing value to stakeholders.

What is the difference between goods and services?

• Goods are tangible items; services are intangible activities.

• Goods are produced by machines; services are provided by robots.

• Goods are services that can be touched; services are goods that cannot.

• Goods are always free; services require payment.

What are the two main types of trade?

• Local trade and regional trade

• E-commerce trade and barter trade

• Wholesale trade and retail trade

• Domestic trade and international trade

Explain internal trade with an example.

• Internal trade involves international exchanges, like importing goods from another country.

• Internal trade refers to the barter system used in ancient civilizations.

• Internal trade is the exchange of goods and services within a country, such as a farmer selling vegetables to a local grocery store.

• Internal trade is the sale of goods only in online marketplaces.

What is external trade?

• External trade is the exchange of goods and services between countries.

• Exchange of goods without any monetary transaction

• Trade involving only services

• Internal trade within a country

What are the benefits of external trade for a country?

• Limited access to technology

• Increased tariffs on imports

• Benefits of external trade include access to diverse goods, economic growth, job creation, specialization, and improved international relations.

• Reduction in foreign investments