ECONOMIC ACTIVITY

Question 1

WHAT IS ECONOMIC ACTIVITY?

Answer 1

PROCESSES INVOLVING THE PRODUCTION AND CONSUMPTION OF GOODS AND SERVICES

Question 2

WHAT ARE THE 4 ECONOMIC ACTIVITIES OF A COMPANY?

Answer 2

INSTITUTIONAL STRUCTURE
OPERATIONS
ORGANIZATION
INFORMATION

Question 3

WHAT ARE THE 5 OPERATIONS ACTIVITIES?

Answer 3

CORE OPERATIONS
NON CORE OPERATIONS
DEBTS AND EQUITY MANAGEMENT
TAX MANAGEMENT
INSURANCE MANAGEMENT

Question 4

WHAT ARE THE 5 CORE OPERATIONS?

Answer 4

RESEARCH AND DEVELOPMENT
PURCHASING
MANUFACTURING
SALES AND MARKETING
LOGISTICS

Question 5

EXPLAIN THE NON CORE OPERATIONS

Answer 5

NON CORE OPERATIONS ARE THE OCCASIONAL INVESTMENTS OF EXTRA FINANCIAL RESOURCES (FROM SAVINGS) INTO NEW BUSINESSES TO CREATE ADDITIONAL REVENUE

Question 6

EXPLAIN DEBT AND EQUITY MANAGEMENT

Answer 6

ARE THE PROCESSES OF BORROWING MONEY (LOAN CAPITAL) AND SELLING COMPANY STAKES (RISK CAPITAL) TO SECURE FINANCIAL BACKING.

Question 7

EXPLAIN TAX MANAGEMENT

Answer 7

IS THE COMPUTATION AND PAYMENT OF TAXES. EVERY COMPANY NEEDS TO DO IT

Question 8

EXPLAIN INSURANCE MANAGEMENT

Answer 8

PROCESSES TO PROTECT THE FIRM FROM POSSIBLE RISKS SUCH AS FIRES, THEFTS AND OTHERS