Chapter 1-Introducing Business

Question 1

What is a business?

Answer 1

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

Question 2

What are finished goods?

Answer 2

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

Question 3

What is a for profit organisation?

Answer 3

The aim of the organisation is to make a profit

Question 4

What is a not-for-profit organisation?

Answer 4

The aim of the organisation is to archive its social mission

Question 5

What is market share?

Answer 5

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

Question 6

What is a profit?

Answer 6

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

Question 7

What is a Multinational Corporation?

Answer 7

A business organisation located in more than two countries

Question 8

What is an objective?

Answer 8

A thing aimed at or sought; a goal.

Question 9

What are financial Objective?

Answer 9

A company’s financial needs or goals for the future

Question 10

What are social objectives?

Answer 10

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.

Question 11

What is economy?

Answer 11

The state of a country or region in terms of the production and consumption of goods and services and the supply of money.

Question 12

What is economic growth?

Answer 12

An increase in the amount of goods and services produced per head of the population over a period of time.

Question 13

What is GDP?

Answer 13

Gross Domestic Product is the broadest quantitative measure of a nation’s total economic activity

Question 14

What is export?

Answer 14

To send goods or services to another country for sale

Question 15

What is import?

Answer 15

To bring goods or services into a country from abroad for sale.

Question 16

What is business environment?

Answer 16

All of the internal and external factors that affect how the company functions including employees, customers, management, supply and demand and business regulations.

Question 17

What is internal environment?

Answer 17

The elements within the organization, including current employees, management, and especially corporate culture, which defines employee behavior.

Question 18

What is external environment?

Answer 18

The factors outside the company that affect the company’s ability to function.

Question 19

What is corporate culture?

Answer 19

The pervasive values, beliefs and attitudes that characterize a company and guide its practices

Question 20

What is a policy?

Answer 20

A course or principle of action adopted or proposed by an organization or individual.

Question 21

What is a stakeholder?

Answer 21

A person with an interest or concern in something, especially a business.

Question 22

What is a supplier?

Answer 22

A supply chain management term that means anyone who provides goods or services to a company or individuals.

Question 23

What is competition?

Answer 23

The activity or condition of striving to gain or win something by defeating or establishing superiority over others.

Question 24

What are competitors?

Answer 24

An organization or country engaged in commercial or economic competition with others.

Question 25

What is sustainable competitive advantage?

Answer 25

Gives a company an edge over its rivals and an ability to generate greater value for the firm and its shareholders

Question 26

What are interest groups?

Answer 26

An organization of people who share a common interest and work together to protect and promote that interest by influencing the government.

Question 27

What is macro environment?

Answer 27

The major external and uncontrollable factors that influence an organization’s decision making, and affect its performance and strategies

Question 28

What is workplace diversity?

Answer 28

The variety of differences between people in an organization

Question 29

What are business ethics?

Answer 29

A form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment

Question 30

What is socially responsible management?

Answer 30

The obligation of an organization’s management towards the welfare and interests of the society in which it operates

Question 31

What are stakeholders?

Answer 31

People with an interest or concern in something, especially a business.

Question 32

What is conflict of interest?

Answer 32

A situation that has the potential to undermine the impartiality of a person because of the possibility of a clash between the person’s self-interest and professional interest or public interest.

Question 33

What is corruption?

Answer 33

Dishonest or fraudulent conduct by those in power, typically involving bribery

Question 34

What is code of conduct?

Answer 34

A set of rules outlining the social norms and rules and responsibilities of, or proper practices for, an individual, party or organization