Business Fundamentals

Question 1

What is the Seed Stage?

Answer 1

the seed stage is when the business is just a thought or idea

Question 2

What is the Start Up Stage?

Answer 2

the start up stage is when a company is in the initial stages of business, usually financially as well as recruiting staff and finalising products and services

Question 3

What are Internal Stakeholders?

Answer 3

internal stakeholders are those within a company whose interest stem from direct employement, ownership or investment

Question 4

What are some examples of External Stakeholders?

Answer 4

• customers
• suppliers
• government
• creditors
• labour unions
• community groups

Question 5

What are the 4 Key Business Functions?

Answer 5

Marketing, Human Resources (HR), Finance and Operations

Question 6

What is Marketing?

Answer 6

marketing is when the business is promoting and/or selling products and/or services including market research and advertising

Question 7

What is Human Resources (HR)?

Answer 7

HR is the personnel of a business regarded as a significant asset in terms of skills and abilities as well as dealing with hiring, administration and training staff

Question 8

What is Finance?

Answer 8

finance is the management of large amounts of money

Question 9

What is Operations?

Answer 9

operations is the action of functioning or the fact of being active or in effect

Question 10

What does Strategic Planning occur through?

Answer 10

Strategic Planning occurs through vision and mission, goals and objectives as well as strategies and tactics

Question 11

What are the benefits of Strategic Planning?

Answer 11

• align everyone around a shared purpose
• proactively set objectives
• define long term goals
• assess current situation and surrounding opportunities

Question 12

What are the Common Business Goals?

Answer 12

Profitability, Market Share, Employment, Societal Wants and Needs and Sustainability

Question 13

What are the 2 types of Business Goals?

Answer 13

Financial Goals (Profitability and Market Share) and Social Goals (Employment, Societal Needs and Wants and Sustainability)

Question 14

What are some key notes on Profitability?

Answer 14

• profitability is a means of measuring the success of a business
• it is critical for a business’ survival
• revenue - expenses = profit
• expenses need to be lowered to produce a positive financial gain

Question 15

What are some key notes on Market Share?

Answer 15

• success of a business is usually measured by its share of the market
• vital to have a leading market share
• critical in a competitive environment
• market share drives the market’s perfection of a business, therefore drives the growth and success of the business

Question 16

What are some key notes on Employment?

Answer 16

• staff are necessary to maintain a business’ goals
• employment is the relationship between the employer and the employee
• a business needs employees to perform operations and provide service to consumers
• strong workforces Gove businesses a competitive edge

Question 17

What are some key notes on Societal Needs and Wants?