Chapter 1 - Introducing Business's

Question 0

Business

Answer 0

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

Question 1

Profit

Answer 1

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

Question 2

Finished goods

Answer 2

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

Question 3

Market share

Answer 3

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

Question 4

Multinational corporation

Answer 4

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

Question 5

Objective

Answer 5

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

Question 6

Economy

Answer 6

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

Question 7

Economic growth

Answer 7

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

Question 8

Business environment

Answer 8

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 9

Internal environment

Answer 9

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

Question 10

External environment

Answer 10

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 11

Corporate culture

Answer 11

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 12

Policy

Answer 12

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

Question 13

Operating environment

Answer 13

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.

Question 14

Stakeholder

Answer 14

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

Question 15

Suppliers

Answer 15

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

Question 16

Competition

Answer 16

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

Question 17

Competitors

Answer 17

Competitors are businesses that offer rival products or services.

Question 18

Sustainable competitive advantage

Answer 18

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

Question 19

Interest groups

Answer 19

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

Question 20

Macro environment

Answer 20

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

Question 21

Workplace Diversity

Answer 21

Workplace diversity means the multitude of individual differences that exist among people in the workplace.

Question 22

Business ethics

Answer 22

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

Question 23

Socially Responsible Management

Answer 23

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 24

Conflict of interest

Answer 24

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 25

Corruption

Answer 25

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

Question 26

Code of Comduct

Answer 26

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

Question 27

For-profit organisations

Answer 27

The businesses main goal is to make a profit from goods or services sold.

Question 28

Not-for-profit organisations

Answer 28

An organisation which aims to provide social, educational, religious or other benefits other then making a profit.

Question 29

Financial Objective

Answer 29

The sole purpose of the organisation or business is to make a profit.

Question 30

Social objectives

Answer 30

The main purpose of the business or organisation to to benefit the community.

Question 31

Personal objectives

Answer 31

The nature of the business and operation tend to reflect the personal objectives

Question 32

GDP

Answer 32

Gross Domestic Product is The monetary value of all the finished goods and services produced within a country’s borders in a certain period of time.

Question 33

Export

Answer 33

The term export means shipping the goods and services.

Question 34

Import

Answer 34

An import in the receiving country is an export from the sending country.