UNIT 1 : WHAT IS BUSINESS?

Business is the activity of making and distributing good and services

-> it can be producing goods, making things, producing services

- 4 basic factors
- Land : refers a piece of real estate, sources of raw materials needed for production
- Labor : is the use of mental or physicak work to produce goods
- Capital : means not only wealth but all things that workers use in production and distribution which
are pruchased with money
- Entepreneurship : is the activity of controlling and directing the other three factors

* How many activities of entrepreneurship does the author mention?

- Initiation : he is responsible for initiating business activity
- Management : he must manage the business by deciding the general policies for business
operation )
- Innovations : to be successful, he must also be innovative )
- Risk bearing : ( he bears all the risks of the business , he takes all the chances of the business )

* Advantages :
- Keep all profits ( for himself )
- Start / end his business
- decide to do everything for his business
* Disadvantages :
- who holds the bag if the business goes bankrupt
- Owner of the business / entereneur
- employer ( have to seek work else where )
- customers ( look for another place to buy their products )
- creditors : money lenders ( lose money )
- others ( friend / relatives )

1. Initiate : begin new business activity

2. Profit: having new products and ideas
3. Labor: what workers provide
4. Business: the activity of producing goods
5. Inovative: having new products and ideas
6. Entrepreneur: person who directs the business
7. Raw material: land
8. Venture: a business activity
9. Loss: the result of expenses being more than sales
10. Capital: money which buys machines and tools
11. Goods: products
12. Services: things which business provides in addition
13. Bankrupt: describes a company with not enough money and too many debts
14. Company: a business
15. Debt: something which must be paid
16. Takes a chance = bears all the risks
17. Defaults on its debts = go bankrupt
18. Employment = employees/ work
19. The owner of the business = entrepreneur
20. The company owes money = creditors
Unit 2 :
1, What is a sole proprietorship ? ( defination , advantages , disadvantages )
2, What is a corporation ?
3, Make a comparison b/t a sole proprietorship/ partnership and a corporation
* How many forms of organization have you known ?

Sole proprietorship : is owned by one person

Partnership : is owned at least by 2 or more partners
-> Unlimited liabilities ( personal responsibility )
- Corporation is owned by many shareholders / stock owners ( legal entity )
-> limited liabilities

SOLE PROPRIETORSHIP
Advantages :
- start / set up or end his ( current ) business.
- decide to do everything for his business.
- keep all profits ( not share with anyone )
- follow very few government and legal regulations
- pay personal income taxes ( pay no corporate income taxes )
Disadvantages :
- Run the risk of financial ruin/ take the responsibility for his incorrect
- his ability to borrow money from the bank is limited
- use his personal / property to pay the debts
* PARTNERSHIP
Differences
- owned by 2 or more partners
- setting up the articles of co-partnership before co-operating the agreement telling the terms and
conditions of a partnership )
* CORPORATION
Advantages
- legal entity ( which is chartered buy the state )
- ownership divided into shares of stocks
- buying & selling shares without permission from other owners.
- raising capital by selling shares of stock
- liability of corporation limited to the value of the assets of the company
Disadvantages
- follow legal procudures ( forming a corporation is not easy )
- taxed twice ( corporate income taxes / personal income taxes )

Comparison
Sole proprietorship -> partnership
Advantages
- Ease of formation / or procedure to set up
is simpler than setting up a corporation
- subject to few regulation
- no corporate income taxes ( the apply flat
rate / and just pay / personal income taxes)
Disadvantage
- Difficult to raise capital ( not a legal entity )
- unlimited liabilities( personal responsibility)
- limited life ( if partnership goes bankrupt /
or set up a new business )
Corporation
- unlimited life
- easy transfer of ownership ( selling stocks
or shares to others without permission )
- Ease of raising captital ( legal entity)
- limited liabilities
- double taxation (corporate income taxes +
personal income taxes )
- cost of setting up and report filling / or
more complicated procedure to set up.
1. Appreciates enjoys
2. Comply with : follow
3. Sole proprietorship : one-owner business = one - owner business
4. Purchases : buys
5. Assets: things of value to a business. = wealth / property
6. Inventory : goods
7. Close up shop go out of business
8. Is entitled : is allowed by law
9. Enterprise: business
10. Bears responsibility for : take blame or credit for
11. Borrow : use something which belongs to someone else
12. Personal property : things he owns beside his business
13. Joint owners = partner
14. pay = settle
15. Event = in the case / on the occasion
16. Stockholders = householders
17. Increase the capital = invest the capital
18. Profits from stock = interests from stock = dividends

Unit 3 : PRODUCTION
1, What is production?
- Production is the process of making sth of value

2. How many types of production are there ?

- 4 types : analysis, synthesis, extraction, fabrication
- Analynis : procuss of separating a raw material into several parts ( petroleum refining )
- Synthetis : process of putting together 2 or more raw materials into one finished product
( glass is made by joining together lime, soda, potash, and other chemicals )
- Extraction : process of removing raw materials from the land ,sea, air for the purpose of
production )
- Fabrication : process of making products of more value from already manufactured
materials ( automobiles )
3. There are two methods of production : the intermittent production method and the
continuous production method.

4. What are the characteristics of the two methods ?

The Intermittent production method The continuous production method

- Short production runs ( production of that
item stops & production of another item
begins
- low volume ( only a limited number,
perhaps only one, of each specification are
made )
- custom- made products ( goods are made
to customer specification )
- Adjustable machines ( machinery is
adjusted for a specific job / is taken apart or
reset for a different job.
- Flexibility ( many signs and styles are
- Long production runs ( this method makes
one type of product for or long period of
time )
- High volume ( the volume must be large )
- standard goods ( the products must be
standardized / try to please average taste )
- specialized machinery ( the company buys
specialized machinery automatic machines )
- standardization ( standardization is
necessary in order to get the greatest benefit
)
- less labor ( assembly line fixed the number
possible )
- Increased labor is necessary
- Expensive ( one of the reasons that
custom- made goods are popular is that they
are expensive
of employees )
- less cost per unit ( it is necessary to make
goods to suit the average customers )

Unit 4 :
- Layout : arrangement of workspace and equipment in a factory
- confusion : state of great disorder
- bottleneck : place where passage is showed and production tend to bunch up
- maintenance personnel : employees who maintain
- workmanship : skill of worker
- eliminate : get rid of
- employ : use
- inventory : raw materials and unsold products in storage
- morale : attittude

1. What is the purpose of efficient layout ?

- to increase worker productivity / keep costs down
2. What elements should be considered when planning a layout ?
- workers/ type of product / method of production / cost of space
3. Which layout is associated with ‘ continuous production / intermittent production
method ?
- continuous production method - > product layout intermittent production method ->
process/ functional layout
1. The advantages and disadvantages of product layout ?
Advantages -> - lower unit costs /- efficient use of machinery /- inventory control
=> Eliminating bottlenecks by controlling and coordinating the use of machines.
Disadvantages :
-> breakdown means total shutdown
-> specialized machine is not adaptable
-> changes can usually be made only once a year
-> inflexible rate of production ( only by purchasing additional ( production equipment or
shiftwork )
-> lack of employee morale
2. The advantages and disadvantages of process / functional layout ?
Advantages :
-> variety of products
-> machine : not specialized/ adjustable
not obsolete
operates independently
-> different jobs in different areas
-> workers take pride in their specific job.
Disadvantages :
-> no definite line
-> flexibility of product demands
-> large inventory.

Unit 5 : MARKETING
What is marketing ?
=> It means that are area of business concerned with producing and selling the right product so that
the company will make a profit.
- Market means gathering of people for buying and selling / is a place where parties can gather to
facilitate the exchange of goods and services.

* How many types of market are there ?

=> Stock market : shares of corporations and other securities are bought and sold
=> Grocery market : location where buying and selling of goods take place
=> Supply and demand market : economic model of determination in a market.
=> Have you ever bought anything with promotional gifts ? what did you buy ? which gifts did you
receive?
PARA 2 : The concept of marketing in the pass ?
=> produce first, sell later
=> Two aspects of marketing sale promotion and distribution
=> Sales promotion : advertising and personal selling
=> Distrivuting : transpotation / storage / related services/ financing/ standardization/ grading /
related risks.
The concept of modern marketing
Para 3 : Modern marketing see if product will sell first, then produce it.
Para 4 :
- Marketing decides what customer wants designs and produces a product that satisfies customer.
- Desire of consumers becomes a factor on production decisions
- Production is an engineering problem.
- Marketing involves considering human behaviour
Para 5:
Vending machine : a coin- operated machine that sells convenience goods
- Two kinds of goods :
- Conveniece goods : buying without consideration
- Shopping goods : requiring more consideration of price a and quality
How does distribution add to the value of the product?
- Place utility ( goods must be at the place where the customer needs them or brought there )
List three characteristic of bull freight transport.
- large quantities
- no special treatment
- low cost
UNIT 6 : PROMOTION
What is the aim of promotion?
=> The aim of promotion is to increase awareness, create awareness, create interest, generate sales
or create brand loyalty.
When the price decreases, more people will purchase the product. The demand for the product is
elastic. More people desire to own the prodct when the price is lower.
Demand curse expensses the relationship b/t price and the quantity demanded ( when the price
decreases, most people will purchase the product )
Language note
- Overall : total
- Elastic demand : consumer desire for the product or service
- Sales volume : rate of sales/ quantity of sales
- Offset : balance/ compensate for / make up for
- Mass audience : a large group of listeners, viewers or readers
- Appeal to : please / attract
- Method of advertising : nature of products
- Demand : desire of customers for goods or services
PARA 2 :
Three main promotional activities :
- Advertising
- personal selling
- sales promotion
UNIT 7 : WHAT IS ADVERTISING ?
PARA 2 :
Advertising is a non personal presentation of goods, services, or ideas amied at a mass audience. Its
purpose is to communicate information that convinces a customer to buy a specific product.
=> Two kinds of ad:
- TV advertisement : attracts the senses of sight and sound ( see & hear TV )
- Newspaper advertisement : contains a lot of written detail.

What is personal selling ?

PARA 4 : Personal selling
- Sales person : tries to convince customers to buy products
- When? Concentrated market for a product
- Industrial goods which are difficult to advertise/ custom-made products
- Trade-in : an older or used product which is being exchanged for a newer model
- sales staff demonstrates products/ negotiates the price/ designates specifications of products.

Para 5 : Sales promotion

=> Two kinds of sales promotion :
- information : pamphlets / booklets / brochures about the product distribute information to
convince / encourage customers to buy products
- stimulation : free sample / reduced price promotion / premiums / coupons which attract customers
to buy products

DEFINATIONS :
- Premium : bonus or additional item which a customer receives at no extra cost when he purchases a
certain item.
- Coupon : a certificate which is usually cut out of a newspaper to purchase a product at a lower
price.
- Display : an arrangement of merchandise for the purposr of showing it customers ( easy to see and
reach ) and stimualting sales.
- Self - service environment : type of retail store / supermarkets where customers select their
merchandise without the help of sales staff and bring it to the cashier.
What is saturated market? Market share ?
=> Saturated market : a market situation in which all the customers have made their purchases and
there are no new customers to be found.
=> Market share : among competitors, one company’s percentage of the total sales for a certain type
of product.

PARA 7 : The way to increase market share

How to lood for customers when the market is saturated ?
=> Program of promotion for a particular product = sales promotion ( inckudes contests, coupons,
price discounting )
=> remind the customer of the name of the product
=> compare the product with others
=> displays of the product by making them easy to see and search

Unit 7
- Distribution: the process of making a product or service available for use or consumtion by
consumer or business user
- Channel of distribution: trade channel: the route or way that a product travels from the
manufacturer
Ultimate consumer : person who purchases/ buys it for his own use
Direct sale : when a product may be sold directly to a consumer
Middlemen : a person or a company which takes possesion of merchandise / or arranges for
transfer of ownership or merchandise in the channel of distribution

- 2 kind of middle man :

=> Merchant middlemen : buy products and control their ownership or take title to
merchandise/ get profits ( distributor )
=> Agent middlemen : arrange for buyers and sellers to get together and conduct business or
arrange for transfer of title between manufacturer and wholesales earn commision

1. Bring to market : deliver to the customer

2. Ultimate consumer: person who buys something for his own use
3. Take possession of : to hold and have physical control over
4. Take title to: to become the legal owner
5. Commission: fee paid for making sale
6. Widely distributed : available for sale at many locations
7. Place utility : increased value due to location
8. Personal selling : explaining the features of a product to a potential customer
9. On display: able to be seen
10. Overhead: costs other than costs of the product, such as rent, electricity, management
11. High volume: large amounts of merchandise being bought and sold quickly
12. Franchise or license : legal permission to operate certain businesses
13. Parent company : large company which owns smaller companies
14. Franchisor: company that grants a franchise
15. Vertically integrated : owning the retail outlet, the distributor and may be even the producer
16. Bureaucracy : a large chain of authority and management
17. Trade channel: channel of distribution
18. Deliver = distribute
19. Storage building = warehouse
20. Many stores where customers shop = retail stores