Functional areas of Business

Question 1

What are the functional areas of businesss?

Answer 1

• Production
• Finance
• Personnel
• Marketing
• R & D (Research and Development

Question 2

What is Production?

Answer 2

The process by which raw materials are transformed into goods and services.

Question 3

What does production involve?

Answer 3

• Research and development
• Purchasing raw material
• Designing goods
• Manufacturing the company’s product
• Controlling the quality of production
• Storage of raw material and finished goods

Question 4

What is Finance?

Answer 4

►. . . is required to form a business and fund its operations

► . . . is carried out by the finance or accounts department

Question 5

What is finance responsible for?

Answer 5

• Preparing the company’s accounts
• Making payments and collecting money on
  behalf of the company
• Advising management on financial matters
• Establishing credit controls

Question 6

What is Marketing?

Answer 6

The marketing function of business aims to anticipate customers’ demand in order to produce the right products profitably.

Question 7

The marketing department is responsible for?

Answer 7

• Market Research
• After sales service
• Pricing
• Distribution
• Designing the product
• Publicity
• Sales Promotion

Question 8

What is Personnel/Human Resource?

Answer 8

The personnel function of a business is to provide employment and seek the interest of the employees.

Question 9

What is the Personnel/Human Resource department responsible for?

Answer 9

► Recruiting staff

► Promotion of workers

► Maintaining a good industrial climate

► Social interests – maintaining clean environs

► Training staff

► Discipline of workers

► Maintaining staff records

► Worker’s welfare – sick and holiday leave

Question 10

What is the R & D (Research and Development) deportment responsible for?

Answer 10

• New product research
• New product development
• Existing product updates
• Quality checks
• Innovation