Introduction to Business (NCTI) Final
Exam *Q&A* (100% Correct) 2024/2025
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What is the primary function of a business in society?
The main role of a business is to provide goods and services that meet the needs and wants of
consumers while generating profit.
How do small businesses contribute to the economy?
Small businesses play a vital role in the economy by creating jobs, fostering innovation, and
enhancing local communities through their services and products.
What is the concept of supply and demand?
Supply and demand refer to the relationship between the availability of a product and the desire
for it, which influences pricing and production levels in the market.
What is the importance of a business plan?
A business plan is crucial as it outlines the goals, strategies, and financial forecasts of a business,
serving as a roadmap for its operations and growth.
How does competition affect a business's pricing strategy?
Competition impacts pricing strategies by forcing businesses to adjust their prices to remain
attractive to customers, often leading to better quality and service.
What role do ethics play in business decision-making?
Ethics are essential in business decision-making as they guide companies in conducting
themselves responsibly and maintaining trust with stakeholders.
What is market segmentation, and why is it important?
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, Market segmentation involves dividing a target market into distinct groups based on shared
characteristics, allowing businesses to tailor their marketing strategies effectively.
What are the different types of business ownership?
The main types of business ownership include sole proprietorships, partnerships, corporations,
and limited liability companies (LLCs), each with distinct legal and financial implications.
How can technology influence business operations?
Technology can enhance business operations by streamlining processes, improving
communication, and enabling data-driven decision-making, leading to increased efficiency and
productivity.
What is the purpose of a SWOT analysis?
A SWOT analysis helps businesses identify their strengths, weaknesses, opportunities, and
threats, aiding strategic planning and decision-making.
How do advertising and marketing differ?
Advertising is a subset of marketing focused on promoting products or services through various
media, while marketing encompasses the entire process of identifying customer needs and delivering
value.
What factors should a company consider when entering a new market?
A company should evaluate market size, consumer behavior, competition, regulatory
environment, and cultural differences before entering a new market.
What is the significance of corporate social responsibility (CSR)?
Corporate social responsibility (CSR) is significant because it reflects a company's commitment to
ethical practices and its impact on society and the environment, enhancing its reputation and customer
loyalty.
How does organizational structure impact business efficiency?
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, Organizational structure determines how roles, responsibilities, and communication flow within a
business, affecting its efficiency and ability to achieve goals.
What is the difference between revenue and profit?
Revenue refers to the total income generated from sales before any expenses are deducted,
whereas profit is the remaining amount after all costs have been subtracted from revenue.
What strategies can businesses use for effective risk management?
Businesses can adopt risk management strategies such as diversification, insurance, and
contingency planning to minimize potential losses and ensure stability.
How does employee motivation influence productivity?
Employee motivation is directly linked to productivity, as motivated workers tend to perform
better, show greater commitment, and contribute positively to the workplace culture.
What is the role of customer service in a business?
Customer service plays a crucial role in building customer loyalty and satisfaction, as it directly
affects the overall experience of customers with a company.
What are the benefits of networking for businesses?
Networking provides businesses with opportunities for collaboration, access to resources, and
potential partnerships that can enhance growth and success.
How does globalization impact local businesses?
Globalization affects local businesses by increasing competition, expanding market reach, and
creating opportunities for collaboration but may also challenge them to adapt to broader market
dynamics.
What is the importance of financial management in a business?
Financial management is essential as it involves planning, organizing, and controlling financial
resources to achieve the business's objectives and ensure sustainability.
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