business functions Flashcards
discuss the differences between management and leadership
management guides human behavior where is leadership in influence of human behavior. Management is task orientated where is leadership? Is people orientated. Management is instructional in their approach. Where is leadership is motivational/inspiring in their approach. Management focuses on the bottom line. Short term leadership focuses on the horizon/long-term. Management focuses on the how and when leadership focuses on the what and why.
what is the importance/purpose of the eight business functions?
they depend on each other these functions work together to ensure survival and sustainability each particular area carries out a task
What are the three levels of management?
top level management, middle level management and lower level management. The level of management determines a chain of command, the amount of authority and status enjoyed by any manager position.
What is top level management?
Overseas activities of other functions so business can achieve its objectives, CEO and directors. They develop long-term goals, strategic plans and business policies. They determine the vision mission objectives and strategy. They ensure that people work together to accomplish goals.
What is the middle level management?
Responsible for specific departments within the business, they take medium term tactical decision decisions they do everything within the company’s policies they they achieve goals in specific departments they implement the plans made by top level management. They work with managers and other departments and acquire resources.
what is low level management?
act as role models for employees because they provide supervision performance feedback and so on they focus on controlling and directing, they are responsible for a high level of productivity and motivating employees. They take short term routine/operational decisions they implement instructions given by the middle management is called the first level management because it’s the first level which subordinate can be promoted to.
describe the management
tools used by an organization to help complete projects more efficiently by organizing and prioritizing related tasks
five basic management tasks
planning organizing leadership controlling risk management
what is planning?
this task evaluates the existing activities and goals. Top equals strategic plans middle equals tactical plans lower management equals operational plans back up plans are chosen. I’ll put in place if chosen plan becomes impossible.
what is organizing
brings together resources to achieve set goals resources include materials, humans and financial used to involves breaking. A plan into actions. Training is included to ensure jobs are carried out successfully organize into the specific functions or departments.
What is leadership?
letting staff know what needs to be done, and when it needs to be done, the employees are motivated to contribute to the success of a business establish a productive working climate
What is controlling?
Established standards and ensure those standards are met, ensure that the business achieve its goals and activities are carried out as planned. The risk can be identified during control. Compare actual results with goals. Corrective measures must be taken continuous control and shows the business run smoothly.
What is risk management?
Identify possible risk by finding risk bearing activities evaluate the potential impact of risks in terms of financial liability study reports and trains. What action to take. Should the rent happen using available resources and contingency plan and communication with stakeholders.
name the factors that influenced the organization structure
The size of the company, technology, resources, strategic goals of the company
Name three types of organizational structures
functional organizational structure, project, organizational structure, matrix organizational structure
What is the functional organizational structure?
Employees get instructions from more than one manager. The plans must be executed determine who will be giving instructions. This structure confuses employees because their reports are more than one a manager.
What is the project organizational structure
Structured around project teams it is a temporary structure because employees are drawn from different departments employees are in group to form a project team that will carry out a particular project
What is the matrix organizational structure?
Structured around projects, but employees remain in their departments must be completed to a certain point. The project is then pass onto the next team that will carry out the next phase of the project.
Discuss the activities of the administration function
Management of information. Handling of information. Office practice. Collection of information. Information technology.
What is management of information within the administration function?
Used to avoid making incorrect decisions based on incorrect information accounting records transactions up-to-date can be sold at a competitive price collecting and classifying, numerical data and statistics
what is handling of information within the administration function?
Information is collected from both outside and inside the business administration function needs to make sure that the correct and reliable information is available for decision-making and to run the business successfully
what is office practice with administration function?
This is how the administration staff should handle the duties. It includes their dress code. They eat kids, the Internet and so on.
What is collection of information in the administrative function?
Information is collected from outside and inside the business they need to ensure that it’s the correct and liable information
What is information technology within the business administration function?
Use of technological equipment to assist with various admin tasks used to communicate and handle information
what is the importance of the administration function?
Effective organization, fast and reliable diets are capturing, reliable information, available to management on time, relevance information available for quick decision-making, complaints handled quickly and effectively
Outline the activities of the financial function
Financial planning, resource allocation, cash flow management, merges
What are the activities of the financial function?
one. Obtain capital from the most available resources. Negotiate better interest rates in order to keep cost down analyze strategies to increase profitability draw a budget to ensure sufficient application of monetary resources implement debt collecting policies to monitor.
Discuss the importance/purpose of the financial function
Determine how much the business needs. Establishes the source for acquiring the capital. Decide how to invest the capital funds.
Why does a business need finance?
Money for starting up a business. Money for running costs. Money to replace. Money for expansion.
what are the types and sources of Finance
Bank loans. Bank overdraft. Assets based loan. Grants. Receivable finance. Angel funding. Venture capital.
What are bank loans?
Money borrowed from the bank, which will be repaid and agreed upon timeframe they asked for long-term finance and interest
What is a bank overdraft?
short term loan added to account of an entrepreneur repaid with a sit interest rate over an agreed amount of time
what is an asset based loan?
money is lend to successful business that wants to expand the operations. The loan is used to purchase an asset and that assets belongs to the lender until it is fully paid off.
What are grants?
Money provided by the government to small businesses that are in their development fee. The money does not have to be paid back if it benefits the community.
What is receivable finance?
Alone provided to a business while they are waiting for pavement of the goods and services provide provided to avoid a cash flow shortage. The loan is equal to the outstanding invoices that I do.
What is angel funding?
Money offered by wealthy entrepreneurs to businesses in exchange for a share in that business
What is venture capital
money offered by individuals or organizations to start up or expand a business. This is done in exchange for a share in the business.
Name the types of capital
fixed capital working capital own capital borrowed capital
What is fixed capital
Capital people invest in fixed assets, for example, land and buildings and so on long-term capital needs of a business
What is working capital
Used in day-to-day activities example trading stock raw materials, it finances the short term capital of business
What is own capital
Provided by the owners of the business
what is borrowed capital
Borrowed from financial institutions paid back with interest
What is the difference between fixed capital and working capital capital
Fixed capital pays fixed assets working pays for day-to-day activity. Fix capital is long-term working capital short-term finance.
Difference between own and borrowed
Own equals own provides capital borrowed means obtained from financial institutions own capital is permanent whereas borrowed capital is temporary return on the capital for capital is profits and return on capital for borrowed capital is paid in the form of interest
Discuss the importance/purpose of purchasing function
Insure sufficient levels of stock. Continuously looking for best suppliers. Returns damaged goods and ensure that it is replaced. Negotiate best possible terms for payment.
What are the activities of the purchasing function?
They should have expert knowledge of the products they should find out the needs of other departments they look for suitable new and better suppliers. They ensure that products are delivered on time and that the stocks are good.
What is the purchasing procedure?
determine the need for the product established the budget find the right quality/quantity of price. Determine the price of the product find the best by obtaining quotes. Select/choose a suitable supplier based on reputation and reliability. Place an order order in writing confirm the prices to avoid unexpected prizes. Collect or receive the order ensure that the right orders are received and recorded make records. Pay the supplier make sure the money goes to the right department. Send an invoice distribute stock to all relevant departments. Complete the order with documentation in placed for future reference.
what is the difference between cash and credit payment
Cash payments are all payments made by cash cash payments have an immediate effect. Cash payments can qualify for discounts. Create a payment referred to all payments on a future date created payments result in creation of assets created payments have to add interest.
What is the importance of stock control?
To determine the amount of stock and businesses can check the cost and selling price of products ensure that there’s enough stock keep levels of stock record the cost of prices and it identifies theft
What is the national credit act?
to provide both created providers and credit applicants with clear guidelines regarding their rights and responsibilities this act applies to all businesses that sell on credit
What is the purpose of the national credit
To encourage responsible buying, give guidelines, discourage, reckless, credit, granting, promotes the development of credit card market in South Africa, Africa
Outline the consumer rights as outlined in the NCA
Apply for credit, in their official language, be protected from unfair, discrimination, be given reasons why a credit application is refused, receive a copy of credit contract
What are the responsibilities of creative providers?
Conduct the credit assessment to ensure that consumers can afford the debt, ensure that the consumer has an income, check the consumers monthly debt, consider other expenses of consumer, consider consumer debt repayment history
What is the definition of national consumer protection act CPA?
To prevent customers from explosion by businesses, ensure that the full participation of previously disadvantage individuals in the economy
