Chapter 1

Question 1

What are the categories of non-financial objectives in for profit entities?

Answer 1

Human
Intellectual
Natural
Social and Relationship

Question 2

What are the three constituent elements of value for money?

Answer 2

Economy - minimising costs
Efficiency - relationship between output and resources to produce them
Effectiveness - relationship between intended and actual results

Question 3

What does it mean if GBP is stengthening?

Answer 3

GBP 1 is worth MORE foreign currency

Question 4

What does it mean if GBP is weakening?

Answer 4

GBP 1 is worth LESS foreign currency

Question 5

What are some economic variables?

Answer 5

Interest rates, exchange rates and inflation

Question 6

What are some business variables?

Answer 6

Margins and volumes of activity

Question 7

What is an association or union?

Answer 7

Group of individuals who enter into an agreemtn to form an entity to accomplish a purpose

Question 8

What are the main strategic implications of international expansion?

Answer 8

Competition - markets may have weaker competition
Country factors - cheap sources of raw materials and cheap labour costs
Benefits to customer
Economies of scale
Risk management