Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

ACCA: F1: A: The Business Organisation, Stakeholders and the External Environment > Business Organisations & Their Stakeholders > Flashcards

Business Organisations & Their Stakeholders Flashcards

1
Q

An important difference between Profit and Non-Profit orientation is…

A

Profit orientated = profit maximisation (Driving factor)

Non-Profit = Provision of a good / service

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

The difference between ownership of Private and Public sector organisations is: Public organisations are…

A

…owned / run by central or local government or government agencies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Ownership vs control in individuals: (3)

A
  1. Shareholders: Owners; Ltd rights over day to day running
  2. Directors: Run the company; Accountable to shareholders;
  3. Operational Management: Accountable to the board
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Executive vs Non-Executive Directors

A

Executive: Daily operations

Non-Executive: Advisory capacity; Particular skills / experience; Some overall guidance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Types of Limited company: (2)

A
  1. Private limited companies

2. Public limited companies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Private and Public Limited companies differ by: (4)

A
  1. Number of shareholders
  2. Transferability of shares
  3. Directors as shareholders
  4. Source of capital
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Sources of capital in Private vs Public Limited companies:

A

Private:

  1. Founder / promoter
  2. Business associates
  3. Venture capitalists

Public: Additionally:

  1. Public
  2. Institutional investors (recognised markets)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Advantages of limited companies: (6)

A
  1. More money
  2. Reduced risk
  3. Separate legal personality
  4. Ownership separate from control (investors need not get involved)
  5. Unrestricted size
  6. Flexibility (capital + enterprise)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Disadvantages of limited companies: (2)

A
  1. Legal compliance costs (audited financials)

2. Shareholders - little practical power

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Key characteristics of the public sector: (4)

A
  1. Accountability (to parliament)
  2. Funding (3 ways…)
  3. Demand for services (limitless!)
  4. Limited resources
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

The public sector can obtain funds in 3 main ways: (3)

A
  1. Raising taxes
  2. Making charges (prescriptions)
  3. Borrowing
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Advantages of the public sector include: (6)

A
  1. Fairness (access to health)
  2. Gaps in Private Sector (Street lights)
  3. Public interest
  4. Economies of scale
  5. Cheaper finance
  6. Efficiency (Lower costs; serve more people)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Disadvantages of the public sector include: (3)

A
  1. Accountability (ignore inefficiency)
  2. Interference (pressures to get elected)
  3. Cost (Perfect service without the cost!)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

The definition of an organisation is… (4)

A
  1. Social arrangement
  2. Collective goals
  3. Self-control of performance
  4. Environmental boundary
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Common characteristics of organisations are… (5)

A
  1. Preoccupied with performance (meeting / improving standards)
  2. Formal, documented systems & procedures
  3. People: Different tasks / specialise
  4. Pursue various objectives
  5. Process inputs into outputs
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Organisations exist because… (5)

be more productive!

A
  1. Overcome individual limitations
  2. Enable specialisation
  3. Save time
  4. Accumulate & share knowledge
  5. Synergy (combined exceeds individual)
17
Q

The ways organisations differ are… (8)

A
  1. Ownership
  2. Control
  3. Activity
  4. Profit / Non-profit
  5. Legal status (Ltd, Partnership)
  6. Size
  7. Source of finance
  8. Technology (Google vs. Fish & Chips)
18
Q

Organisational activities include: (7)

A
  1. Agriculture
  2. Manufacturing
  3. Extractive (Raw materials)
  4. Energy
  5. Retailing (Distribution)
  6. Intellectual production
  7. Service (Retail, distribution, transport, banking, medicine, education)
19
Q

The 3 broad types of stakeholders are: (3)

A
  1. Internal (employees; management)
  2. Connected (Shareholders; customers; suppliers; financiers)
  3. External (Community; government; pressure groups)
20
Q

Internal stakeholders are interested in… (2)

A
  1. Organisation’s continuation and growth
  2. Individual interests and goals
    (Employees & management)
21
Q

Connected stakeholders: Shareholders are interested in… (7)

A
  1. Changes in shareholder value; Long-term share price growth
  2. Increase in shareholder wealth
  3. Profitability
  4. P/E ratios
  5. Market capitalisation
  6. Dividends
  7. Yields
    (Shareholders)
22
Q

Connected stakeholders: Bankers are interested in… (2)

A
  1. Security of loan
  2. Adherence to loan agreements
    (Deny credit; Higher interest / Receivership)
23
Q

Connected stakeholders: Suppliers are interested in… (3)

A
  1. Profitable sales
  2. Payment for goods
  3. Long-term relationship
    (Refusal of credit; Court action; Wind down)
24
Q

Connected stakeholders: Customers are interested in… (2)

A
  1. Goods as promised
  2. Future benefits
    (Buy elsewhere; Sue)
25
Q

External stakeholders: Government is interested in… (3)

A
  1. Jobs
  2. Training
  3. Tax
    (Legal action; Regulation; Increases)
26
Q

External stakeholders: Interest / Pressure groups are interested in… (3)

A
  1. Pollution
  2. Rights
  3. Other
    (Publicity; Direct action; Sabotage; Pressure on government)
27
Q

External stakeholders: Professional bodies are interested in… (1)

A
  1. Members’ ethics

Impose standards

28
Q

Another approach: Primary vs Secondary stakeholders:

A

Those with a contractual agreement:

  1. Primary stakeholders (Internal & Connected)
  2. Secondary stakeholders (External)
29
Q

Mendelow: Stakeholder Mapping (4)

A

Matrix of:

  1. Power held and
  2. Likelihood of showing interest
30
Q

Mendelow: Segment D

A

High interest; High power

Key players / major customers

31
Q

Mendelow: Segment C

A

Low interest; High power
Treated with care; kept satisfied
Large institutional shareholders

32
Q

Mendelow: Segment B

A

High interest; Low power
Lobbying
Kept informed
Community representatives / Charities

33
Q

Mendelow: Segment A

A

Low interest; Low power

Minimal effort

34
Q

Mendelow: Each segment has 3 choices:

A
  1. Loyalty (do as they’re told)
  2. Exit (Sell shares; new job)
  3. Voice (stay and change)
35
Q

Measuring stakeholder satisfaction: Employees (3)

A
  1. Staff turnover
  2. Pay & benefits relative to market rate
  3. Job vacancies
36
Q

Measuring stakeholder satisfaction: Government (4)

A
  1. Pollution measures
  2. Promptness of filing annual returns
  3. Accident rate
  4. Energy efficiency
37
Q

Measuring stakeholder satisfaction: Distributors (2)

A
  1. Share of joint promotions paid for

2. Rate of running out of inventory

ACCA: F1: A: The Business Organisation, Stakeholders and the External Environment (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions