Business foundations exam 1

Q: What is the definition of business and its role in generating economic and social value?
A: Business is the organized effort of individuals to produce and sell goods or services for profit. It generates economic value through job creation, innovation, and economic growth, while creating social value through ethical practices, CSR, and community support.

Q: What are the five primary components of business?
A: Operations, Marketing, Finance, Human Resources, Strategy.

Q: How can business help solve complex problems in society?
A: By addressing issues like climate change (sustainability), poverty (fair wages), and healthcare (innovation in medicine and services).

Q: How does the evolving nature of business relate to changing work practices?
A: Business adapts through automation, remote work, and the gig economy, reflecting technological advancements and workforce expectations.

Q: Why is social responsibility and ethical decision-making fundamental to good business?
A: Ethical and socially responsible businesses ensure long-term sustainability, consumer trust, and positive societal impact.

Q: Why is all business today considered global?
A: Global supply chains, technology, and digital communication interconnect businesses worldwide.

Q: What are types of trade restrictions, and how do they impact business?
A: Tariffs, quotas, embargos, and sanctions can limit market access, affect pricing, and create competitive advantages or disadvantages.

Q: How do businesses compete globally, from startups to multinational corporations?
A: They leverage innovation, strategic partnerships, digital platforms, and localization strategies.

Q: What are the challenges of working across cultures?
A: Language barriers, business etiquette differences, and varying consumer behaviors require adaptability and cultural intelligence.

Q: What models help build cultural awareness in business?
A: Hofstede’s Cultural Dimensions and the Lewis Model provide insights into cultural differences.

Q: Why is an entrepreneurial mindset important in business today?
A: It fosters innovation, adaptability, and problem-solving in both startups and established businesses.

Q: What is the difference between a growth and fixed mindset?
A: A growth mindset embraces challenges and learning, while a fixed mindset resists change and avoids failure.

Q: What defines an entrepreneurial mindset?
A: Risk-taking, resilience, opportunity recognition, and adaptability.

Q: How does practice influence the way we think?
A: Deliberate practice and real-world experiences reshape our thought processes and decision-making skills.

Q: How does VUCA relate to the entrepreneurial mindset?
A: Volatility, Uncertainty, Complexity, and Ambiguity require entrepreneurs to be agile, forward-thinking, and resilient.

Q: Why is entrepreneurship important in the world economy?
A: It drives innovation, job creation, and economic growth.

Q: What are common myths about entrepreneurship?
A: Entrepreneurs aren’t always extreme risk-takers, lone geniuses, or solely profit-driven.

Q: What are the different types of entrepreneurship?
A: Small business, scalable startups, social entrepreneurship, and corporate entrepreneurship.

Q: What are the four pathways of idea generation?
A: Problem-solving, trend analysis, identifying market gaps, and personal experience.

Q: What is the IDEATE method of opportunity recognition?
A: A structured process for identifying and evaluating business opportunities.

Q: What is a business model?
A: A framework for how a company creates, delivers, and captures value.

Q: What are the most common components of a business model?
A: Key partners, key activities, value proposition, customer relationships, channels, revenue streams, cost structure, and key resources.

Q: What are common types of business models?
A: Subscription, freemium, direct-to-consumer, marketplace, franchise, and others.

Q: What is the Business Model Canvas?
A: A visual tool that outlines business model components to help with strategic planning.

Q: How does entrepreneurship disrupt existing business models?
A: Startups challenge traditional industries (e.g., Uber disrupting taxis, Airbnb disrupting hotels).

Q: What is the difference between marketing and sales?
A: Marketing focuses on attracting and engaging customers, while sales converts leads into buyers.

Q: What are the elements of the marketing mix (4Ps)?
A: Product, Price, Place, Promotion.

Q: What is the difference between B2B and B2C sales?
A: B2B (business-to-business) involves relationship-driven, complex sales, while B2C (business-to-consumer) is direct and transaction-focused.

Q: What are the seven stages of the sales cycle?
A: Prospecting, Preparation, Approach, Presentation, Handling Objections, Closing, Follow-up.

Q: What are modern selling techniques?
A: Social selling, AI-driven sales, consultative selling, and digital marketing strategies.

Q: How do customers create markets?
A: Demand and consumer needs shape industries and drive product development.

Q: What are the five types of customers?
A: Innovators, Early Adopters, Early Majority, Late Majority, Laggards.

Q: What is consumer behavior, and why is it important?
A: The study of how consumers make purchasing decisions, helping businesses understand and influence buyer behavior.

Q: What are the five steps in the buying process?
A: Problem recognition, Information search, Evaluation of alternatives, Purchase decision, Post-purchase behavior.

Q: How can businesses segment markets?
A: Through demographic, psychographic, geographic, and behavioral segmentation.

Q: How does organizational structure impact a business?
A: It affects communication, efficiency, and scalability.

Q: What are the key elements of organizational structure?
A: Hierarchy, span of control, centralization vs. decentralization, and departmentalization.

Q: What are the traditional types of organizational structures?
A: Functional, divisional, and matrix structures.

Q: What are contemporary organizational structures?
A: Flat, network, team-based, and agile structures.

Q: What factors influence the design of an organization’s structure?
A: Company size, industry, technology, strategy, and external environment.