Business purpose and structure

Question 1

Define business aims and objectives

Answer 1

Aims - What the business wants to achieve in the long-term
Objectives - What the business wants to achieve in the short-term

Question 2

Define the term business structure and give examples

Answer 2

Organisational systems that work for the specific business, ensuring all objectives are SMART.
Examples : private, public, not-for-profit

Question 3

What are the reasons a business may change ownership ?

Answer 3

1. Age/death/divorce
2. Change in business operations
3. Financial/legal reasons
4. Business failure
5. Merging of 2 businesses

Question 4

Name different business structures and locations

Answer 4

Flat (little/no layers of management), tall/hierarchical (multiple layers of management, matrix (collaboration of different teams)

Local ( flat structure), National (tall structure), international (tall or matrix)

Question 5

What are the terms behind decision making ?

Answer 5

Cognitive - well-informed and considered
Iteration - All data available for business to make decisions
Synthesis - Information used from previous steps