3.1 What is business?

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What is the dynamic nature of business influenced by?

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The dynamic nature of business is influenced by technology, taste, and internal and external factors.

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Why do people start businesses?

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People start businesses to make a profit, gain independence, and achieve personal goals.

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What are some qualities of successful entrepreneurs?

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Successful entrepreneurs are often leaders, adaptable, quick, resilient, and risk-takers.

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Why do new business ideas come about?

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New business ideas come about due to demand and obsolescence.

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What are the classifications of business sectors?

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Business sectors are classified into primary (raw materials), secondary (manufacturing), tertiary (services), and quaternary (IT).

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How is the size of a business determined?

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The size of a business is determined by the number of employees and revenue, with categories like small, medium, and large.

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What are the main reasons businesses exist?

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Businesses exist to earn a financial return, with objectives like profit, growth, survival, cash flow, social, and ethical goals.

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What is a mission statement?

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A mission statement is the overriding goal of a business, explaining its existence and strategic perspective.

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What makes a good mission statement?

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A good mission statement contains objectives, differentiates from competitors, defines markets, and is relevant to stakeholders.

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What are common criticisms of mission statements?

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Common criticisms include being unsupported by actions, vague, obvious, seen as PR, and not reflecting reality.