Chapter One - Introducing Business

Question 1

What are finished goods?

Answer 1

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

Question 2

What is a profit?

Answer 2

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

Question 3

What is a business?

Answer 3

Any commercial, industrial or professional activity undertaken by an individual or a group.

Question 4

What is a for profit organisation?

Answer 4

A business or other organisation whose primary goal is making money (a profit).

Question 5

What is a not for profit organisation?

Answer 5

A nonprofit organisation is formed for the common good of the public. Nonprofit organisations are usually formed for some specific religious, charitable or educational purpose.

Question 6

What is a market share?

Answer 6

The portion of a market controlled by a particular company or product.

Question 7

What are personal objectives?

Answer 7

They are goals created for yourself.

Question 8

What is import?

Answer 8

Bring (goods or services) into a country from abroad for sale.

Question 9

What is policy?

Answer 9

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

Question 10

What are competitors?

Answer 10

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

Question 11

What are business ethics?

Answer 11

Business ethics (also corporate ethics) is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organisations.

Question 12

What is a multinational corporation?

Answer 12

A multinational corporation is usually a large corporation which produces or sells goods or services in various countries. Importing and exporting goods and services. Making significant investments in a foreign country.

Question 13

What is an economy?

Answer 13

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

Question 14

What is a business environment?

Answer 14

The definition of business environment means all of the internal and external factors that affect how the company functions including employees, customers, management, supply and demand and business regulations. An example of a part of a business environment is how well customers’ expectations are met.

Question 15

What is an operating environment?

Answer 15

An operating environment are factors surrounding the business that influence the businesses activities for example this may involve suppliers and creditors, competitors, customers, lobby groups.

Question 16

What is a sustainable competitive advantage?

Answer 16

Sustainable Competitive Advantages. Sustainable competitive advantages are company assets, attributes, or abilities that are difficult to duplicate or exceed; and provide a superior or favourable long term position over competitors.

Question 17

What is socially responsible management?

Answer 17

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

Question 18

What is an objective?

Answer 18

A thing aimed at or sought; a goal.

Question 19

What is economic growth?

Answer 19

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

Question 20

What is internal environment?

Answer 20

The conditions, entities, events, and factors within an organization that influence its activities and choices, particularly the behavior of the employees. Factors that are frequently considered part of the internal environment include the organisation’s mission statement, leadership styles, and its organisational culture.

Question 21

What is a stakeholder?

Answer 21

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

Question 22

What are interest groups?

Answer 22

An interest group is an organisation of people who share a common interest and work together to protect and promote that interest by influencing the government. Interest groups vary greatly in size, aims, and tactics. Political scientists generally divide interest groups into two categories: economic and noneconomic.

Question 23

What are stakeholders?

Answer 23

More then one person with an interest or concern in something, especially a business.

Question 24

What is a code of conduct?

Answer 24

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. Related concepts include ethical, honour, moral codes and religious laws.

Question 25

What are financial objectives?

Answer 25

An objective set by a company in which the target state is measured in monetary terms, such as a certain amount of profits, or a certain percentage increase in profits over a period of time. Financial objectives are distinct from other types of objectives, such as retention objectives, recruitment objectives, or public relations objectives, the achievement of which cannot easily be measured monetarily.

Question 26

What is a GDP?

Answer 26

Gross Domestic Product (GDP) is the broadest quantitative measure of a nation’s total economic activity. More specifically, GDP represents the monetary value of all goods and services produced within a nation’s geographic borders over a specified period of time.

Question 27

What is an external environment?

Answer 27

The external environment of an organisation are those factors outside the company that affect the company’s ability to function. Some external elements can be manipulated by company marketing, while others require the organisation to make adjustments.

Question 28

What is a supplier?

Answer 28

A vendor, or a supplier, is a supply chain management term that means anyone who provides goods or services to a company or individuals. A vendor often manufactures inventorial items, and sells those items to a customer.

Question 29

What is a macro environment?

Answer 29

The conditions that exist in the economy as a whole, rather than in a particular sector or region. In general, the macro environment will include trends in gross domestic product (GDP), inflation, employment, spending, and monetary and fiscal policy.

Question 30

What is conflict of interest?

Answer 30

A situation in which the concerns or aims of two different parties are incompatible.

Question 31

What are social objectives?

Answer 31

A social objective is 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. Often our social objective is related to improving human wellbeing.

Question 32

What is export?

Answer 32

To send (goods or services) to another country for sale or a product or service sold abroad.

Question 33

What is corporate culture?

Answer 33

Corporate culture is the pervasive values, beliefs and attitudes that characterise a company and guide its practices. To some extent, a company’s internal culture may be articulated in its mission statement or vision statement.

Question 34

What is competition?

Answer 34

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

Question 35

What is workplace diversity?

Answer 35

Workplace diversity refers to the variety of differences between people in an organisation. That sounds simple, but diversity encompasses race, gender, ethnic group, age, personality, cognitive style, tenure, organisational function, education, background and more.

Question 36

What is corruption?

Answer 36

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