Chapter 1 Intro To Business

Question 0

What is internal environment?

Answer 0

The internal environment, sometimes called the mirco environment, includes those factors over which the business has some degree of control.

Question 1

What is business environment?

Answer 1

The business environment refers to the surrounding conditions in which the business operates. It can be divided into two broad categories: internal and external.

Question 2

What is external environment?

Answer 2

The external environment includes those factors over which the business has little control. It may be further divided into two categories: operating and macro.

Question 3

What is corporate culture?

Answer 3

The corporate culture is a set of mostly unwritten or informal rules that spell out how people are to behave most of the time.

Question 4

What is policy?

Answer 4

A policy is a general guide to help employees deal with recurring situations.

Question 5

What is competition?

Answer 5

Competition is rivalry among business that seek to satisfy a market.

Question 6

What is competitors?

Answer 6

Competitors are businesses that offer rival products or services.

Question 7

What is interest groups?

Answer 7

Interest groups are groups of people who attempt to directly influence or persuade an organisation to adopt particular policies.

Question 8

What is sustainable competitive advantage?

Answer 8

A sustainable competitive advantage is the ability of a business to develop strategies that ensure it has an ‘edge’ over its competitors.

Question 9

What is a stakeholder?

Answer 9

A stakeholder is any group or individual who has an interest in, or is affected by, the activities of a business.

Question 10

What is a supplier?

Answer 10

A business’s supplier are those organisations and individuals that supply the resources that the business needs to conduct its operations.

Question 11

What is operating environment?

Answer 11

A business’s operating environment, sometimes called the task environment, refers to the specific outside stakeholder with whom the business interacts in conducting its business.

Question 12

What is profit?

Answer 12

A business makes a profit when the income earned (revenue) is greater than the costs of production (expenses).

Question 13

What is business?

Answer 13

A business is an organisation that provides goods and/or services to consumers in order to make a profit.

Question 14

What is finished goods?

Answer 14

Finished goods are those that are ready for customers to buy and use.

Question 15

What is market share?

Answer 15

Market share refers to the business’s share of the total industry sales for a particular product.

Question 16

What is a multinational corporation?

Answer 16

A multinational corporation (sometimes referred to as a transnational corporation) is a company that has branches in many different countries.

Question 17

What is an objective?

Answer 17

An objective States what an organisation expects to achieve over a set period.

Question 18

What is return on investment?

Answer 18

The returned on investment is a positive or negative percentage that relates the money gained or lost on an investment to the cost of that investment. It is usually taken to mean that the return on the investment occurs over a 12-month period.

Question 19

What is an economy?

Answer 19

An economy is a system set up to determine what to produce and to whom produce, how to produce and to whom production will be distributed.

Question 20

What is economic growth?

Answer 20

Economic growth occurs when the real value of goods and services increases over a set period of time.

Question 21

What is the macro environment?

Answer 21

The macro environment is made up of the broad conditions and trends in the economy and society within which a business operates.

Question 22

What is free trade?

Answer 22

Free trade should take place without any restrictions such as tariffs.

Question 23

What is a tariff?

Answer 23

A tariff is a tax imposed on imported goods, usually to protect locally produced suppliers of similar items.

Question 24

What is workplace diversity?

Answer 24

Means the multitude of individual differences that exist among people in the workplace.

Question 25

What is business ethics?

Answer 25

Business ethics is the application of moral standards to business behaviour.

Question 26

What is socially responsible management?

Answer 26

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.

Question 27

What is stakeholders?

Answer 27

Stakeholders are individuals or groups with an interest in the success of the business.

Question 28

What is conflict of interest?

Answer 28

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.

Question 29

What is corruption?

Answer 29

Corruption is a lack of honesty or integrity; using a position of trust or authority to receive favours, often financial bribes

Question 30

What is a code of conduct?

Answer 30

A code of conduct is a set of ethical standards by which managers and employees should abide.