Page 34 - Business Principles and Management

Chapter 1 • Characteristics of Business

responsibility for managing their own work and participating in employee teams.
Moreover, if you expect to become a supervisor or an executive of a company,
you must fully grasp how the activities of all departments are coordinated in a
smoothly operating business. Even organizations that are not profit-making busi-
nesses, such as the government and charitable organizations, operate in a manner
similar to businesses. Business knowledge will help you contribute as an employee
or as a manager in these organizations as well.

CHECKPOINT
What is the main difference between an entrepreneur and an
intrapreneur?

1.3 Assessment

UNDERSTAND MANAGEMENT CONCEPTS
Determine the best answer for each of the following questions.
1. An example of income that would be included in the underground
economy but not included in the GDP is
a. small-business profits
b. income generated by oil and gas production
c. income from the sale of services
d. cash paid for work that is not reported on taxes
2. Which of the following is not offered to a franchisee by a franchisor?
a. help in finding a location for the business
b. operating procedures and policies
c. a guaranteed minimum profit
d. the use of the company’s name and trademark

THINK CRITICALLY
Answer the following questions as completely as possible.
3. What factors do you believe have contributed to the very large GDP
of the United States compared to that of most other countries?
4. What are a business’s responsibilities to the community
in which it operates? What are the community’s
responsibilities to businesses?

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