'Chap 1' - Introducing Business Flashcards
What is a Profit?
A business makes a profit when the income earned (revenue) is greater than the costs of production (expenses).
What is a Business?
A business is an organisation that provides goods and/or services to consumers in order to make a profit.
What are Finished Goods?
Finished goods are those that are ready for customers to buy and use.
For Profit Organisation
A business makes a profit when the income earned is greater than the costs of production (expenses).
Not-For-Profit Organisation
Not-for-profit organisations may make a profit, but the main
reason they exist is to pursue a social objective, such as
helping others.
Market Share
Market share refers to the business’s share of the total industry sales for a particular product.
Multinational Corporation
A multinational corporation is a company that has branches in many different countries.
Objective
An objective states what an organisation expects to achieve over a set period.
Financial Objectives
A financial objective that is central to many business
organisations is making a profit.
Social Objectives
Social objectives is related to improving human wellbeing.
Personal Objectives
The nature and operation of the business tend to reflect the personal objectives of the owner.
Economy
An economy is a system set up to determine what to produce, how to produce and to whom production will be distributed.
Economic Growth
Economic growth occurs when the real value of goods and services increases over a set period of time.
GDP
GDP is the total market value of all final goods produced by a country over a set period of time.
Export
Exports refer to the sale of our goods and services to other countries.
Import
Importing goods or services into a country from abroad for sale.
Business Environment
The business environment refers to the surrounding conditions in which the business operates.
Internal Environment
The internal environment, sometimes called the micro environment, includes those factors over which the business has some degree of control.
External Environment
The external environment includes those factors over which the business has little control.
Corporate Culture
The corporate culture is a set of mostly unwritten or informal rules that spell out how people are to behave most of the time.
Policy
A policy is a general guide to help employees deal with recurring situations.
Operating Environment
A business’s operating environment, sometimes called the task environment, refers to the specific outside stakeholders with whom the business interacts in conducting its business.
Stakeholder
A stakeholder is any group or individual who has an interest in, or is affected by, the activities of a business.
Supplier
A business’s suppliers are those organisations and individuals that supply the resources that the business needs to conduct its operations.
Competition
Competition is rivalry among businesses that seek to satisfy a market.
Competitors
Competitors are businesses that offer
rival products or services.
Sustainable Competitive Adventage
A sustainable competitive advantage is the ability of a business to develop strategies that ensure it has an ‘edge’ over its competitors.
Interest Groups
Interest groups are groups of people who attempt to directly influence or persuade an organisation to adopt particular policies.
Macro Environment
The macro environment is made up of the broad conditions and trends in the economy and society within which a business operates.
Workplace Diversity
Workplace diversity means the multitude of individual differences that exist among people in the workplace.
Business Ethics
Business ethics is the application of moral standards to business behaviour.
Socially Responsible Management
Socially responsible management is managing an organisation in such a way that the broader social welfare of the community is taken into consideration when making business decisions.
Stakeholders
Stakeholders are individuals or groups with an interest in the success of the business.
Conflict of Interest
Conflict of interest occurs when a person takes advantage of a situation or piece of information for his or her own gain rather than for the employer’s interests.
Corruption
Corruption is a lack of honesty or integrity; using a position of trust or authority to receive favours, often financial bribes.
Code of Conduct
A code of conduct is a set of ethical standards by which managers and employees should abide.
