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POB > Functional Areas of a Business > Flashcards

Functional Areas of a Business Flashcards

1
Q

What are the 6 MAIN functional areas of a business?

A

Production
Marketing
Human Resources
Research and Development
Finance (and accounts)
Information Technology

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2
Q

Name 3 Key Functional Activities of the PRODUCTION Department

A
  • Making the product
  • Maintaining factory equipment
  • The transformation of raw materials into finished products
  • Warehousing finished goods
  • Controlling the production process
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3
Q

Name 3 Key Functional Activities of the MARKETING Department

A
  • Developing sales and promotion strategies for the product.
  • Conducting market research (get customers’ tastes and preferences)
  • Designing the company’s product
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4
Q

Name 3 Key Functional Activities of the FINANCE Department

A
  • Produce all the financial reports for the business
  • Establish hire purchases and credit control measures
  • Budgeting for the company and disbursement/giving out of financial resources to the other departments.
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5
Q

Name 3 Key Functional Activities of the HUMAN RESOURCES/PERSONNEL Department

A
  • Terminations: firing people
  • Occupational safety & health: proper railings, fire extinguisher up-to-date, etc.
  • Recruitment and selection (of employees)
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6
Q

Name 3 Key Functional Activities of the RESEARCH & DEVELOPMENT DEPARTMENT

A
  • Developing new products.
  • Conducting feasibility studies for a new product or business idea.
  • Conducting varied types of research on behalf of the company such as product research, technology research, etc.
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7
Q

Name 3 Key Functional Activities of the INFORMATION TECHNOLOGY Department

A
  • Developing and maintaining I.T systems to suit the nature of the business and the needs of the business.
  • Ensuring the security of corporate information and assets.
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8
Q

What is a stakeholder?

A

An individual or group with a vested/direct interest in the operations and performance of a business.

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9
Q

What are BUSINESS stakeholders?

A

Business Stakeholders activities’ if any business can have a great impact on many people and groups

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10
Q

What is the difference between stakeholders and shareholders?

A

Stakeholders have a vested interest in the business, and shareholders buy shares to earn money.

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11
Q

What are the two classifications of Stakeholders of a Business?

A
  • Internal Stakeholders
  • External Stakeholders
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12
Q

What is an Internal Stakeholder?

A

Individuals within an organization who have a special interest in its activities and how well the business performs.

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13
Q

What is an External Stakeholders?

A

Individuals who aren’t employed by or members of the business, but rather they have a vested interest in its activities and its financial performance.

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14
Q

What are 4 examples of internal stakeholders?

A
  • Owners/Shareholders
  • Managers
  • Employees
  • Board of Directors
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15
Q

What are 4 examples of external stakeholders?

A
  • Suppliers
  • Consumers
  • Lending institutions
  • Community
  • Competitors
  • Government
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16
Q

What do owners/shareholders do? (INTERNAL)

A
  • Provide capital to allow the business to expand
  • Expected to attend general meeting to receive annual reports and elect directors
  • ensure the managers are fulfilling the objectives of the business and are using resources efficiently
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17
Q

What does the Board of Directors do? (INTERNAL)

A
  • Develop strategies for the company to reach the agreed company goals for sales, profits, and company value.
  • To decide how business profit and capital contributions by the owner should be invested to achieve the most profit.
  • To ensure that the activities of the business and its financial statements are in accordance with the government regulations.
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18
Q

What do the managers do? (INTERNAL)

A
  • To maximize profit or make maximized returns on investments made by the owners into the business.
  • Ensure the employees are productive and also treated fairly
  • Ensure that the goals of the owner and the Board of Directors are achieved in growing the business
19
Q

What do the employees do? (INTERNAL)

A
  • they provide manual and other labour services to the company to produce goods and services for the customers/to allow goods and services to be provided for the customers.
  • meet the conditions and requirements of the employment contract.
  • to cooperate with management in all reasonable requests.
20
Q

What do suppliers do? (EXTERNAL)

A
  • to supply goods and services ordered by the business in the time and condition as laid out by the purchase contract or the suppliers’ service agreements.
21
Q

What do consumers do?

A
  • They purchase goods and services from businesses to provide revenue (from sales which allows the business to function) to make profit and expand the business
  • To provide feedback to the business on the performance of the product.
  • Expected to be honest and not make any false claims about poor service or faulty goods.
22
Q

What do lending institutions do?

A
  • Ensure businesses can repay loans
  • Provide financial assistance to businesses in the form of loans or financial advice
23
Q

What does the community do?

A
  • cooperate with the business when reasonable to do so on expansion and other plans
  • meet reasonable requests from business for local services
  • Ensure that the business within the community operates within the law and contributes towards the development of the community
24
Q

What do competitions do?

A
  • stimulate competition for sales and market shares
25
Q

What does the government do?

A
  • To ensure that the business publishes truthful and accurate financial reports
  • To ensure that the business pays all taxes
  • To ensure the business follows the laws of the country
26
Q

What is the responsibility of someone in advertising and public relations?

A

They must develop sales and promotion strategies for the business.

27
Q

What is the responsibility of a compliance officer?

A

They ensure that all business activities follow the national and international laws and regulations, professional standards, and accepted business practices within the business industry

28
Q

What is the responsibility of a strategic planner?

A

They define a company’s direction, and ensure that the resources, processes or structures are in place to achieve established goals.

29
Q

What is the responsibility of an Educator?

A

Deliver instruction to business students.

30
Q

What is the responsibility of an Information officer?

A

They must obtain, organize and distribute information internally to staff, and externally to the general public and customers, via varied forms of media

31
Q

What is the responsibility of a web designer?

A

A web designer conducts research to help business(es) create a unique web design strategy that will generate sales.

32
Q

What is an entrepreneur?

A

An entrepreneur is someone who starts a business in the hope of gaining profit by taking risks to create change and satisfy the wants and needs of customers.

33
Q

What is resource personnel?

A

They deal with the management of employees

34
Q

What is a software developer?

A

A person that develops computer programs to facilitate business processes and activities.

35
Q

What is a web planner?

A

A web planner plans, creates, and codes web pages using both technical and non-technical skills to create a website that meets customers’ needs

36
Q

What is Ethics?

A

Ethics are beliefs and principles about what is ‘right’ and ‘wrong’ behaviour or actions

37
Q

What are legal issues?

A

Legal issues are activities guided by the country’s laws and regulations

38
Q

What’s the difference between legal and ethical issues?

A

Legal issues are based on written laws and ethical issues are based on opinions of what is right and wrong

39
Q

Ethical and Legal parts of a business are?

A
  • Registering the business
  • The adoption of an organisational code or ethics
  • Policies on environmental issues
  • Handling of personal information
40
Q

What are the effects of customers and advertisers on misleading advertisements from businesses?

A

The customers will waste their money that can be spent on a beneficial product and the advertiser will face financial and legal repercussions

41
Q

What is the effect on the government when businesses withhold their taxes?

A

The government loses revenue that they need to provide services for the country.

42
Q

Why do businesses (mainly factories) find it easier to harm the environment with waste disposal?

A

It is cheaper and more profitable for them.

43
Q

When businesses earn money illegally…

A

The money can not be legally recorded in business transactions.

44
Q

The effect of money laundering on the government is…

A

They’ll have an inaccurate measure of the flow of money and their plans for the country will not be as effective.

POB (3 decks)

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