Chapter 1: Introducing Business Flashcards
What is a Business?
A business is an organisation that provides goods and 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.
What is a for profit organisation?
A business that keeps all money that is made after paying expenses.
What is a non for profit organisation?
A non for profit organisation does not keep any money earned, instead it goes to charities and community organisations.
What is a market share?
Market share refers to the business’s share of the total industry sales for a particular product.
What is a Profit?
A business makes a profit when the income earned or the revenue is greater than the costs of production or expenses.
What is an objective?
An objective is a goal set by a business to meet at the end of the year like making a certain amount of money by a certain time by selling goods and services.
What is a financial objective?
it is a goal set by a company to make a certain amount of money by a certain date by selling goods and services.
What is a social objective?
it may be sponsoring community operations, provide employment, community service, social justice, and ethological sustainability.
What is a multinational corporation?
It is a company that branches out over many different countries.
What is a personal objective?
they are of a higher income and improve financial security, for example, complement the business objectives of growth and diversification.
What is an economy?
is a system set up to determine what to produce, how to produce and to whom production will be distributed.
What is economic growth?
It occurs when the real value of goods and services increase over a set period of time.
What is a business environment?
The business environment refers to the surrounding conditions in which the business operates. It can be divided into two broad categories; internal and external.
What is internal environment?
it is sometimes called the micro environment, includes those factors over which the business has some degree of control.
What is external environment?
It includes those factors over which the business has little control. It may be further divided into two categories; operating and macro.
What is 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.
What is a policy?
A policy is general guide to help employees deal with recurring situations.
what is an operating environment?
a businesses operating environment, sometimes called the task environment, refers to the specific outside stakeholders with whom the business interacts in conducting it business.
what is a stakeholder?
a stakeholder is any group or individual who has an interest in, or is affected by, the activities of a business.
what is a supplier?
a businesses suppliers are those organisations and individuals that supply the resources that the business needs to conduct it operations.
What is competition?
competition is a rivalry among businesses that seek to satisfy a market.
what are competitors?
Competitors are businesses that offer rival products or services.
What is a sustainable competitive advantage?
it is the ability of a business to develop strategies that ensure it has an ‘edge’ over it’s competitors.
What are interest groups?
they are groups of people who attempt to directly influence or persuade an organisation to adopt particular policies.
What is a macro environment?
it is made up of the broad conditions and trends in the economy and society within which a business operates.
what is workplace diversity?
it means the multitude of individual differences that exist among people in the workplace.
what are business ethics?
business ethics is the application of moral standards to business behaviour.
Social 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
are individuals or groups with an interest in the success of the business.
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 employers interest.
Corruption
is a lack of honesty or integrity; using a position of trust or authority to receive favours, often financial bribes.
Code of conduct
is a set of ethical standards by which managers and employees should abide.
