CH 1 - Business introduction

Question 1

1. What is a buiness mission?
2. What should a mission statement include?

Answer 1

1. Its basic function in society of how it can satisfy stakeholders
2. ‘What is our business?’ ‘What is our value to customers?’ ‘What do we want our business to become?’

Question 2

What does the mnemonic SMART goals stand for?

Answer 2

• Specific
• Measurable
• Achievable
• Relevant
• Time bound

Question 3

1. What are non operational goals?
2. What are oporational goals?

Answer 3

1. Qualitative goals
2. Quantitive goals

Question 4

What does revenue maximisation mean?

Answer 4

Prioritising sales over profit

Question 5

What does satisficing profit mean?

Answer 5

Seeking to make a safisfactory profit to meet shareholders expectations rather than maximising wealth

Question 6

What characteristics determine whether a group can be described as a organisation?

Answer 6

• Social arranagments
• Collective goals
• Controlled performance

Question 7

1. What is the primary objective of a business?
2. what is the primary objective of a public charity of government scheme?
3. what is a vision?

Answer 7

1. To increase wealth of shareholders
2. to provide goods or services
3. how the business or charity sees itself in the future

Question 8

According to Henry Mitzberg what are…

1. decisional roles
2. inerpersonal roles
3. informational roles

Answer 8

1. a manager making decisions and changes
2. managers listening to employees give feedback or respresenting their team
3. managers giving information to staff as fact or interpretation