Business Unit 1

Question 1

Primary Sector

Answer 1

Primary sector: business operating in the primary sector are invoked with extraction, harvesting,mining,forestry and oil extraction

Question 2

Secondary Sector

Answer 2

Secondary sector: are businesses that are involved with manufacturing or creating a product.

Question 3

Tertiary sector:

Answer 3

Tertiary sector: services for the general puvlic

Question 4

Quaternary sector:

Answer 4

Quaternary sector: are a subcategory of teratory and involved are involved intelligence (ex Ia, tech etc)

Quaternary sector: are a subcategory of teratory and is involved in intellectual, knowlege based activtiies that egnerate and share information

Question 5

Private sector: Public sector: Sole trader

Answer 5

Private sectors: are owned by private individuals
Public sectors: are owned under the government

Sole trader: someone who runs thier company by themself
:

Question 6

Limited liablity company:
Private limited company:
Public limtied company:

Answer 6

Limited liability company: shareholders do not stand to lose personal belonging if company goes bankrupt or needs to pay debt

Private limited company: is a company that cannot share capital from the general public

Public limited company: it cansells its shares to the general public

Question 7

Limited liablity company:
Private limited company:
Public limtied company:

Answer 7

Limited liability company: shareholders do not stand to lose personal belonging if company goes bankrupt or needs to pay debt

Private limited company: is a company that cannot share capital from the general public

Public limited company: it cansells its shares to the general public

Question 8

Social enterprise

Answer 8

Social enterprise: are revenue streaming business with social objectives at the core of thier operations

Question 9

Public and private partnerships

Answer 9

Public-private partnership (ppp). Occurs when the government works with a private sector to jointly

Question 10

Aims:

Answer 10

Aims: are the general and long term goals of an organization

Question 11

Objective

Answer 11

Objective: short-medium term goals of an organization and the organization takes specific steps to achieve it.
Objectives are specific objectives required to achieve the organisation’s desired aims, defined in measurable outcomes.

Question 12

Strategis

Answer 12

Strategies: are short-medium term actions to achieve the strategic objective of the organization

Question 13

Operation straegy:
generic strategy:
Corporate strategy:

Answer 13

operation strategy: are the day to day methods
Generic strategy: are those that affect the entire org
Corporate strategy: are targeted at long term objective

Question 14

Tactical objective:

Answer 14

Tactical objectives: are the short term goals that affect a section of the business (up to 12 months)

Question 15

Strategic objective

Answer 15

Strategic objective: refer to the long term goals of an organzation

Question 16

Market standing

Answer 16

Market standing: refers to the extent of which a business has presence in the industry

Question 17

Corporate culture:

Answer 17

Corporate culture: the accepted norms and customs of a business

Question 18

Ethics

Answer 18

Ethics: are the moral principles that guide desicion-making and strategy

Question 19

Business ethics

Answer 19

Business ethics:is the actions and organization

Question 20

What is CSR

Answer 20

Socially responsible business( SRS): are Business that act morally towards thier skate holders

Corporate Social Responsibility is a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders

And Corporate socal responsibility( CSR) are the obligations help from the socially responsible business

Question 21

Swot analysis:

Answer 21

study undertaken by an organization to identify its internal strengths and weaknesses, as well as its external opportunities and threats.
Strength
Weakness
Opportunities
Threats

Exterbal factors that present chances for business are called opportunities, such as lower tax. And external factors that can cause harm are called threats such as ressicon.
The advantage of steeple analysis is that is it quite simply to use and the analysis helps mangers to eb through and logical in their analysis of the et=xternal oppoorutines and threats faced by the business

Question 22

ansoff Matrix

Answer 22

Ansoff Matrix: is a analytical tool that helps managers to choose and devise various product and market growth
Market Penetration (lower left quadrant). This is the safest of the four options. …
Product Development (lower right quadrant). …
Market Development (upper left quadrant). …
Diversification (upper right quadrant).

Question 23

Business must have SMART objective:

Answer 23

Business must have SMART objective:
Specific
Measurable
Achievable
Realistic
Time constrained s

Question 24

Skateholders are:

Answer 24

Skateholders is any individual, group or organization with a direct interest in and is affected by the actiiities and preorfmacne of a business.

Question 25

Internal vs external skateholders:

Answer 25

Internal stakeholders: ar emmebers of the organzation.
External stakeholder: do not form part of the business nit have a direct interest or involvement in the organization.

Question 26

who are shareholders

Answer 26

Shareholders : limited liability company are owned by skatholder. This stakeholder group invests money in a company by purchasing its share. Stockholders have voting right and how a say in how the company is run. Shareholders have two main objectives: to maximise dividies, to achieve capital gain in the valu of the shares.

Question 27

Skateholder conflict:

Answer 27

Stakeholder conflict: refer to the inability of an organzation to met all of its skateholder objectives simultaneously, due to difference in the vayring needs of all its stakeholders.

Question 28

Steeple analysis:

Answer 28

Refers to Socia, Techonoliigcal, Economic,Envirmental,Political,Legal and ethical oppoturintes and threats of the external business evnirment.

Question 29

Protectionist measure

Answer 29

Protectionist measures: protects domestic business from forgein competitiveness

Question 30

Exchange rate

Answer 30

Exchange rate: measures the value of the domestic currency to the forgein one

Question 31

Economies of scale and types

Answer 31

Economies of scale are the advantages that can sometimes occur as a result of increasing the size of a business.

 Marketing economies of scale
 Financial Economies of scale
 Managerial economies of scale
 Human resources economies of scale
 Network economies of scale

Marketing economies of scale: These refer to the cost savings that a company can achieve through larger marketing budgets. For example, a company with a large marketing budget can negotiate lower advertising rates, or can more easily spread its brand message through a larger network of media outlets.
Financial economies of scale: These refer to the cost savings that a company can achieve through better access to financing and lower borrowing costs. For example, a larger company may be able to secure a lower interest rate on a loan due to its higher creditworthiness.
Managerial economies of scale: These refer to the cost savings that a company can achieve through more efficient management practices. For example, a larger company may be able to spread its management costs over a larger number of units, making each unit more cost-effective.
Human resources economies of scale: These refer to the cost savings that a company can achieve through more efficient utilization of its human resources. For example, a larger company may be able to spread its human resources costs over a larger number of employees, making each employee more cost-effective.
Network economies of scale: These refer to the cost savings that a company can achieve through increased network effects. For example, a company with a large network of suppliers may be able to negotiate better prices for raw materials, while a company with a large network of customers may be able to negotiate better prices for its products.

1. Purchasing

Firms might be able to lower average costs by buying the inputs required for the production process in bulk or from special wholesalers. By negotiating with suppliers for volume discounts, the purchasing firm takes advantage of economies of scale.

2. Managerial

Firms might be able to lower average costs by improving the management structure within the firm. The firm might hire better skilled or more experienced managers.

3. Technological

A technological advancement might drastically change the production process. For instance, fracking completely changed the oil industry a few years ago. However, only large oil firms that could afford to invest in expensive fracking equipment could take advantage of the new technology.

Question 32

Formula for average cost, fixed cost and variable cost.

Answer 32

The average cost: is the cost per unit of output. The average cost consist of the average fixed cost and variable cost. The AFC = TFC /Q. The average variable Cost = TVC / Q