Chapter 1 - introduction to Business Management Flashcards
1
Q
Features for-profit and not-for-profit organisations
A
- Some organisations are business, which aim to make a financial profit.
- Not-for-profit businesses may have divisions that make a profit, but profit is not the main objective of this type of organisation.
2
Q
Distinction between small, medium-sized and large businesses
A
- Business can be classed as small, medium-sized and large, or somewhere in between these categories. Their classification will depend on such things as number of employees and market share, as well as ownership and who makes the decisions.
- The most common legal structures for small businesses partners are sole trader or partnership; for medium-sized business partnership or company; and for large businesses company.
3
Q
Objectives of different types of organisations
A
- Many business organisations strive to achieve three broad objectives; financial, social and personal.
4
Q
Contribution of small business to the economy
A
- Small businesses provide employment, contribute to taxation revenue and boost economic growth and export earnings.
5
Q
The internal environment of a business
A
- Business work with in two environments — internal (micro) and external (operating and macro)
- The internal environment is made up of elements created by people within the business, therefore the business to have control over it. These elements could be polices, culture, management style and people working in the business.
6
Q
The external environment of a business
A
- The external environment is made up of elements created by people or situations outside the business, therefore the business may have little or no control over these factors.
- The operating part of the external environment comprise customers suppliers, competition and interest groups that i
impact on business performance. - The macro part pf the external environment involves for from the legal system, economics, political climate, technology and society.
7
Q
Business ethics and socially responsible management
A
- Business must ethically. This means they must comply with standards that establish what is acceptable and what is unacceptable behaviour.
- Socially responsible management means that business decisions and actions that into consideration the greater welfare of society.
8
Q
The external macro environment of a business
A
- The macro environment is made up of the broad conditions and trends in the economy and society within which business operates.
9
Q
Profit
A
- A financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something.
10
Q
Business
A
- An organisation or economic system where goods and services are exchanged for one another or for money.
11
Q
Market share
A
- Market share is the percentage of a market (defined in terms of either units or revenue) accounted for by a specific entity.
12
Q
Finished Goods
A
- Finished goods are goods that have completed required manufacturing process and are awaiting to be fitted/mixed/processed with final product OR final product itself could also be called finished goods. Examples: cars, computers, spare parts, etc
13
Q
GPD
A
- Gross Domestic Product (GDP) is the broadest quantitative measure of a nation’s total economic activity.
14
Q
Code of Conduct
A
- A code of conduct is a set of rules outlining the social norms and rules and responsibilities of, or proper practices for, an individual, party or organisation.
15
Q
Multinational Corporation
A
- A corporation that has its facilities and other assets in at least one country other than its home country. Such companies have offices and/or factories in different countries and usually have a centralised head office where they co-ordinate global management.
