Chap 1; Intro To Business Flashcards
What is business?
An organisation that provides goods and/or services to consumers in order to make a profit
What is profit?
What a business makes when the income earned (revenue) is greater than the costs of production (expenses)
What is finished goods?
Goods that are ready for customers to buy and use
What is a for profit organisation?
A business with a goal to make enough money for the business and owners.
What is a not for profit organisation?
A organisation who’s goal is not to make more money for them self, but to invest any extra money in their business.
What is market share?
The businesses share of the total industry sales for a particular product.
What is a multinational corporation?
A company that has branches in many different countries.
What is an objective?
A statement of what an organisation expects to achieve over a set period.
What are financial objectives?
An objective set by a company in which the target state is measured in monetary terms, such as a certain amount of profits.
What are social objectives?
A social objective is a statement that details a specific desired outcome of a project that is related to the interaction of the individuals, groups, and institutions within a society.
What are personal objectives?
Goals the personal owner wants to meet.
What is economy?
A system set up to determine what to produce, how to produce and to whom production will be distributed.
What is economic growth?
When the real value of goods and services increases over a set period of time.
What is GDP?
It represents the total dollar value of all goods and services produced over a specific time period
What is export?
Goods or services sold by one country to individuals, businesses or governments in another country with the aim of extending sales and market penetration.
What is import?
bring (goods or services) into a country from abroad for sale.
What is business environment?
The surrounding conditions in which the business operates. It can be divided into two broad categories: internal and external.
What is internal environment?
Those factors over which the business has some degree of control.
What is external environment?
Those factors over which the business has little control. It may be further divided into two categories: operating and macro.
What is corporate culture?
A set of mostly unwritten or informal rules that spell out how people are to behave most of the time.
What is policy?
A general guide to help employees deal with reoccurring situations.
What is operating environment?
The specific outside stake holders with whom the business interacts in conducting it’s business.
What is a stakeholder?
Any group or individual who has an interest in, or is affected by, the activities of a business.
What is a supplier?
Those organizations and individuals that supply the resources that the business needs to conduct it’s operations.
What is competition?
Rivalry among businesses that seek to satisfy a market.
What are competitors?
Businesses that offer rival products or services.
What is sustainable competitive advantage?
The ability of a business to develop strategies that ensure it has an ‘edge’ over its competitors.
What are interest groups?
Groups of people who attempt to directly influence or persuade an organisation to adopt particular policies.
What’s a macro environment?
Refers to the broad conditions and trends in the economy and society within which a business operates.
What is workplace diversity?
The multitude or individual differences that exist among people in the workplace.
What are business ethics?
The application of moral standards to business behavior.
What is socially responsible managment?
Managing an organisation in such a way that the broader social welfare of the community is taken into consideration when making business decisions.
What is conflict of interest?
When a person takes advantage of a situation or piece of information for his or her own gain rather than for the employers interests.
What is corruption?
A lack of honesty or integrity;using a position of trust or authority to receive favours, often financial bribes.
What is code of conduct?
A set of ethical standards by which managers and employees should abide.
