Nature Of Business Flashcards
What are the important pillars for the success of a business?
Understanding the basic structures, organization, and key
forces
What are tangibles in a business?
Goods are tangible items, that can be held, touched, or stored, manufactured or traded by businesses, such as
laptops
What are non tangibles in a business?
Services are intangible offerings of businesses that can’t be held, touched, or stored. Physicians, lawyers,
hairstylists, car washes, and airlines all provide services.
How does one measure the profitability of a business?
through key variables such as revenue, costs, and profit
A company whose costs are greater than revenues incur
Loss
If Microsoft has money left over after it pays all
costs, it has a
Profit
Which organization engage in management, marketing, and
finance activities to help reach their goals.
Both Non for profit and profit organizations
A business entity should have a hierarchy of aims and plans, Follows as,
Vision—–Future Outlook
Mission—Overall purpose
Goals—-General overall aims
Objectives—Specific overall aims
Strategies and Strategic aims—Detailed longer-term targets
Tactical plans and aims—–Implementation targets and budgets
Operational plans and aims—-Action plans and targets
What is a Mission statement?
Mission statement is more like a present statement where company explain what it is, it’s values, it’s objectives and goals and where it want to be
Four traditional factors of
production are….
Natural Resources, human resources (labour), capital, and
enterprise.
How many types of stakeholders are there?
Internal and External
Which method is used to categorized stakeholders?
‘power-interest matrix’ can be used to categorize stakeholders based on their power or influence and interest
in a project or entity.
Board of directors are responsible to
Shareholders
Who has the power to knock off a director from the board?
Shareholders can take some action against the directors if they are dissatisfied. For example,
shareholders can vote against the re-election of directors (and in extreme cases can vote to have a director
removed from office).
Who are connected stake holders?
a) non-executive directors
b) employees
c) key suppliers
d) key customers
Which strategy is use to identify the
roles and responsibilities of each relevant stakeholder
RASCI (Responsible, Accountable, Supporting, Consulted, and Informed)
Low power / Low interest
Monitor only
What are internal stakeholders?
A) executive directors and senior managers
B) other managers and employees
C) some shareholders
Who are an external stakeholder?
Non executive directors
High power / High interest
Managed closely with regular engagement
High power / Low interest
Keep satisfied with active consultation
Low power / High interest
Keep informed
The main stakeholders in a business organisation, whether internal or external, are those
Who exercise the great influence
Major suppliers could exert influence by controlling the supply of a key resources to the organisation. This results in a ______for a business
Supplier or vendor risk
Customers can exert influence collectively through their buying power. If they do not like what a business organisation is doing, they can switch to buying from competitors. This results in a________ for a business
Customer concentration risk
Individual employees might be in a position of power within the organisation, perhaps because of special expertise that they possess. Their position of power may result in a ____ for a business
Key person risk
Individual employees such as top consultants and investment bankers influence the organization by exercising their power internally. By using which of the following source of power they can influence the decision of the organization?
Position power
Internal sources of power includes claim or control that exist over a particular ________of a business
Resource
In Pakistan, private and public limited companies are regulated by the
Companies Act, 1917; Securities and Exchange Commission of Pakistan
