Basics

Question 1

Organisation

Answer 1

A social arrangement for the controlled performance of collective goals which has a boundary separating it from its environment

Question 2

Social arrangement

Answer 2

Individuals gathered for a purpose

Question 3

Controlled performance

Answer 3

Performance is monitored against the goals and adjusted as necessary to ensure goals are accomplished

Question 4

Collective goals

Answer 4

The organisation has goals over and above the goals of people within it

Question 5

Boundary

Answer 5

The organisation is distinct from environment

Physical: factory
Social: employment status

Question 6

Sustainability

Answer 6

The ability to meet the needs of the present without compromising, the ability of future generations to meet their own needs

Question 7

Business sustainability

Answer 7

How far business can operate in a sustainable way, and how it should interact with individuals and government in doing so

Question 8

Corporate responsibility

Answer 8

The actions activities and obligations of business in achieving sustainability

Question 9

Natural capital

Answer 9

Everything the planet provides us humans and businesses to live. Some resources, such as food and water are renewable whereas others, such as oil and gas are nonrenewable.

Question 10

Profit satisficing

Answer 10

Rather than seeking to maximise profit and wealth, managers may choose to achieve a simply satisfactory profit for a business

Question 11

Revenue maximisation

Answer 11

Businesses act to maximise revenue, not necessarily profit or wealth in order to maintain or increase. Its market share ensure survival and discourage competition managers benefit personally because of the prestige of running a large and successful company and also because salaries and other benefits are likely to be higher in bigger companies than in smaller ones

Question 12

Multiple objectives

Answer 12

Objectives are needed and eight key areas
1) Market standing
2) Innovation
3) productivity
4) physical and financial resources
5) profitability
6) manager performance and development
7) worker performance and attitude
8) social responsibility

Question 13

Constraints theory

Answer 13

For some businesses profit is not the most important constraint in their business. This is perhaps seen most clearly in areas where ethical constraints apply such as staff relations, or environmental protection.