MNB1501: LESSON 1
1. Critically discuss the role of business in society
Businesses transform resources into goods/services that satisfy societal
needs.
They:
Provide employment
Boost economy
Increase level of taxation
Decreases poverty
Promote social responsibility
2. Explain the needs of society and how need satisfaction occurs
Society has unlimited needs but limited resources, which leads to the
economic principle: achieving maximum satisfaction with minimal resources.
Needs are satisfied through production and consumption within an economic
system.
➕ Maslow’s Hierarchy of Needs (linked to need satisfaction):
MNB1501: LESSON 1 1
, Maslow classified human needs in a five-level pyramid, from basic to advanced:
Needs Explanation
Physiological needs Basic needs
Safety and security
Protection, health, financial stability
needs
Social needs Love, friendship, belonging
Esteem needs Achievement, status, respect
Self-actualization needs Reaching one’s full potential through pursuing higher education
3. Discuss the three main economic systems in the world
Economic system Function
Free market economy Privately owned resources; profit-driven; minimal state
(Capitalism) interference.
Command economy
State controls resources and decisions; no private ownership
(Communism)
Socialism Mix of private ownership and state control
Most countries use a mixed economy — blending free-market and socialist
elements.
4. Explain the differences between need-satisfying institutions
and non-profit institutions
Need-satisfying institutions (e.g. businesses) aim to make a profit by
meeting consumer demand.
Non-profit institutions (e.g. NGOs, sports clubs, churches):
Don’t seek profit
Provide services (e.g. healthcare, support)
May be privately or publicly funded
Government institutions (e.g. SAPS, health departments) are non-profit and
state-funded.
MNB1501: LESSON 1 2
, 5. Explain the inherent nature of business management
Business management involves using resources efficiently and productively
to meet goals.
Focuses on individual organisations (unlike economics, which focuses on the
whole economy).
Business activities are grouped into functional areas:
Functional areas Activities
HR Management Manages staffing
Marketing Identifies and meets customer needs
Operations Converts resources into finished goods/ services
Finance Manages finances required to run a business
Purchasing and logistics Purchasing and distribution logistics
Information management Uses technology to manage business data
General management Planning, organizing, leading, controlling
MNB1501: LESSON 1 3
, MNB1501: LESSON 2
1. Define the terms “entrepreneur” and “entrepreneurship”
An entrepreneur is a person who takes initiative and financial risk to create
and run a business, using the factors of production to earn a profit.
Entrepreneurship is the process of identifying or creating business
opportunities and turning them into successful ventures.
2. Discuss the entrepreneurial process
The entrepreneurial process includes the following 6 key steps:
1. Aptitude, personality and skills – Assess whether you have what it takes.
2. Access to resources – Secure financial, human, and physical resources.
3. Opportunities and ideas – Spot and validate a business opportunity.
4. Feasibility study – Evaluate if the idea can succeed.
5. Business plan – Prepare a plan to attract funding and guide operations.
6. Managing the business – Launch and run the business effectively.
MNB1501: LESSON 2 1
1. Critically discuss the role of business in society
Businesses transform resources into goods/services that satisfy societal
needs.
They:
Provide employment
Boost economy
Increase level of taxation
Decreases poverty
Promote social responsibility
2. Explain the needs of society and how need satisfaction occurs
Society has unlimited needs but limited resources, which leads to the
economic principle: achieving maximum satisfaction with minimal resources.
Needs are satisfied through production and consumption within an economic
system.
➕ Maslow’s Hierarchy of Needs (linked to need satisfaction):
MNB1501: LESSON 1 1
, Maslow classified human needs in a five-level pyramid, from basic to advanced:
Needs Explanation
Physiological needs Basic needs
Safety and security
Protection, health, financial stability
needs
Social needs Love, friendship, belonging
Esteem needs Achievement, status, respect
Self-actualization needs Reaching one’s full potential through pursuing higher education
3. Discuss the three main economic systems in the world
Economic system Function
Free market economy Privately owned resources; profit-driven; minimal state
(Capitalism) interference.
Command economy
State controls resources and decisions; no private ownership
(Communism)
Socialism Mix of private ownership and state control
Most countries use a mixed economy — blending free-market and socialist
elements.
4. Explain the differences between need-satisfying institutions
and non-profit institutions
Need-satisfying institutions (e.g. businesses) aim to make a profit by
meeting consumer demand.
Non-profit institutions (e.g. NGOs, sports clubs, churches):
Don’t seek profit
Provide services (e.g. healthcare, support)
May be privately or publicly funded
Government institutions (e.g. SAPS, health departments) are non-profit and
state-funded.
MNB1501: LESSON 1 2
, 5. Explain the inherent nature of business management
Business management involves using resources efficiently and productively
to meet goals.
Focuses on individual organisations (unlike economics, which focuses on the
whole economy).
Business activities are grouped into functional areas:
Functional areas Activities
HR Management Manages staffing
Marketing Identifies and meets customer needs
Operations Converts resources into finished goods/ services
Finance Manages finances required to run a business
Purchasing and logistics Purchasing and distribution logistics
Information management Uses technology to manage business data
General management Planning, organizing, leading, controlling
MNB1501: LESSON 1 3
, MNB1501: LESSON 2
1. Define the terms “entrepreneur” and “entrepreneurship”
An entrepreneur is a person who takes initiative and financial risk to create
and run a business, using the factors of production to earn a profit.
Entrepreneurship is the process of identifying or creating business
opportunities and turning them into successful ventures.
2. Discuss the entrepreneurial process
The entrepreneurial process includes the following 6 key steps:
1. Aptitude, personality and skills – Assess whether you have what it takes.
2. Access to resources – Secure financial, human, and physical resources.
3. Opportunities and ideas – Spot and validate a business opportunity.
4. Feasibility study – Evaluate if the idea can succeed.
5. Business plan – Prepare a plan to attract funding and guide operations.
6. Managing the business – Launch and run the business effectively.
MNB1501: LESSON 2 1
