exam definitions

Question 1

incorporation

Answer 1

the process a business goes through to become a registered company and a separate legal entity

Question 2

objective

Answer 2

a desired goal, outcome or specific result that a business intends to achieve

Question 3

Mission statement

Answer 3

expresses why the business exists, its purpose and how it will operate

Question 4

vision statement

Answer 4

states what the business aspires to become

Question 5

strategies

Answer 5

are the actions that a business takes to achieve specific objectives

Question 6

effectiveness

Answer 6

is the degree to which a business has achhieved its stated objectives

Question 7

efficiency

Answer 7

refers to how well a business uses its resources to achieve objectives

Question 8

key performance indicators

Answer 8

are specific criteria used to measure the efficiency and effectiveness of business performance

Question 9

stakeholders

Answer 9

a group of individuals who interact with the business and have a vested interest in it activities

Question 10

corporate social responsibility

Answer 10

the obligations a business has over and above its legal responsibilities to the well being of employees and customers, shareholders and the community as well as the environment

Question 11

triple bottom line

Answer 11

refers to the economic, social and environmental performance of the business

Question 12

stakeholder engagement

Answer 12

occurs when businesses share information and seek input from stakeholders to discover the social and environmental issues that are important to them as part of the businesses corporate responsibility

Question 13

corporate culture

Answer 13

refers to the values, ideas, expectations and beliefs shared by members of the business

Question 14

official corporate culture

Answer 14

policies, objectives, and slogans of the business

Question 15

real corporate culture

Answer 15

informal rules (unwritten) that guide how people behave in the business
E.g staff dress, language used by staff, how staff treat each other and customers

Question 16

Motivation

Answer 16

refers to the individuals internal processes that directs, energises and sustains a persons behaviour
Higher level of motivation=higher productivity

Question 17

Training

Answer 17

generally refers to the process of teaching staff how to do their job more efficiently and effectively by boosting knowledge and skills