CAVENDISH UNIVERSITY UGANDA

NAME: ASABA JOY

STUDENT NUMBER: ay125898

EMAIL: joyasaba66@gmail.com
COURSE NAME:
BACHELORS OF BUSINESS ADMINISTRATION
(ACCOUNTING AND FINANCE)
COURSE DEPARTMENT:
BUSINESS ADMINISTRATION
LECTURER’S NAME:
LUTAAYA SADAT SSEMWANGA
EMAIL: slutaaya@cavendish.ac.ug
 1. Explain the characteristics that best explain a business organization
 Resource scarcity
It refers to limited resources like time finance skills and others. This affects new firms but
entrepreneurs see it as a chance to exploit.
 Opportunity orientation: ability to identify opportunities which individuals take
advantage of.
 Uncertainty: possibility of unexpected risk.
Business organization is full of risks which entrepreneurs do not fear, exploit and lead in
uncertainty.
 Flexibility: entrepreneurs do not base on one best solution. They usually improvise in
response to the changing environment.

2. Businesses have a multiplicity of objectives for their operations. Discuss the:

a) Social objectives of a business (5 marks)

 social identification
 social financial support
 creating jobs for example provide jobs to society
 Championing social causes for example support community activities e.g. clean water,
health provision etc.
 Satisfying the needs and wants of customers and potential customers to succeed.
 Payment of taxes to government which eventually slows down to society.
 Provision of market for society’s output like agricultural products.
 Reducing harmful effects on the environment.
 Utilizing what would be idle resources.
 Providing goods and services.
 Improving infrastructures e.g. roads.
 Increasing opportunities to the disadvantaged groups.
 Sustainability or preventing the end of something good.

b) Economic objectives of a business

 Economic policy- this concerns the market systems established by the government.
 Administrative issues-strict rules and procedures limit entrepreneurship development.
 Nature of infrastructures- good infrastructure and utilities promote entrepreneurship compared
to where infrastructure is undeveloped.
 Cost of business
 Economic incentives
 Resource availability
 Legal requirements
 Financial systems
3. Examine the various types of industries in business giving at least two examples of each.

Farming

Fishing

 Primary industry

Includes the economy that utilizes the natural resources of the environment e.g. forestry, agriculture,
fishing, mining.

 Secondary industry

Involved construction and manufacturing e.g. plastic industry, textile industry, textile, leather,
entertainment, personal care.

 Tertiary industry majorly consists of the service sector e.g. public health, franchises,
telecommunications etc.
 Extractive industries –deal with extraction and refinement of natural resources.
 Primary (raw materials industry)
 Secondary (manufacturing & construction)
 Quaternary (information service)
 Quinary (human services)