1.2 Flashcards
What are the internal factors to a business?
Attitude to risk
Organisational objectives
Core competencies of a business
Impact on internal stakeholders
Business ethics
Financial considerations
Time
Opportunity cost
What are the external factors to a business?
Level and nature of risk
Impacts on external stakeholders
Degree of uncertainty
Changes in the market
Changes in the external environment
What does risk adversemean?
Reluctant to take risks
What does core competencies mean?
The things that a business is good at, making it stand out from its competitors and enabling it to do better
What does financial considerations mean?
Decisions that a business makes often depends on the funds available
What does opportunity cost mean?
The consequences of decisions and alternatives
What does changes in the market mean?
Changes in the demand and supply of certain goods or services in the market
