Nature Of Business

Question 1

What are the important pillars for the success of a business?

Answer 1

Understanding the basic structures, organization, and key

forces

Question 2

What are tangibles in a business?

Answer 2

Goods are tangible items, that can be held, touched, or stored, manufactured or traded by businesses, such as
laptops

Question 3

What are non tangibles in a business?

Answer 3

Services are intangible offerings of businesses that can’t be held, touched, or stored. Physicians, lawyers,
hairstylists, car washes, and airlines all provide services.

Question 4

How does one measure the profitability of a business?

Answer 4

through key variables such as revenue, costs, and profit

Question 5

A company whose costs are greater than revenues incur

Answer 5

Loss

Question 6

If Microsoft has money left over after it pays all

costs, it has a

Answer 6

Profit

Question 7

Which organization engage in management, marketing, and

finance activities to help reach their goals.

Answer 7

Both Non for profit and profit organizations

Question 8

A business entity should have a hierarchy of aims and plans, Follows as,

Answer 8

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

Question 9

What is a Mission statement?

Answer 9

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

Question 10

Four traditional factors of

production are….

Answer 10

Natural Resources, human resources (labour), capital, and

enterprise.

Question 11

How many types of stakeholders are there?

Answer 11

Internal and External

Question 11

Which method is used to categorized stakeholders?

Answer 11

‘power-interest matrix’ can be used to categorize stakeholders based on their power or influence and interest
in a project or entity.

Question 12

Board of directors are responsible to

Answer 12

Shareholders

Question 13

Who has the power to knock off a director from the board?

Answer 13

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).

Question 14

Who are connected stake holders?

Answer 14

a) non-executive directors
b) employees
c) key suppliers
d) key customers

Question 15

Which strategy is use to identify the

roles and responsibilities of each relevant stakeholder

Answer 15

RASCI (Responsible, Accountable, Supporting, Consulted, and Informed)

Question 15

Low power / Low interest

Answer 15

Monitor only

Question 16

What are internal stakeholders?

Answer 16

A) executive directors and senior managers
B) other managers and employees
C) some shareholders

Question 17

Who are an external stakeholder?

Answer 17

Non executive directors

Question 18

High power / High interest

Answer 18

Managed closely with regular engagement

Question 19

High power / Low interest

Answer 19

Keep satisfied with active consultation

Question 20

Low power / High interest

Answer 20

Keep informed

Question 21

The main stakeholders in a business organisation, whether internal or external, are those

Answer 21

Who exercise the great influence

Question 22

Major suppliers could exert influence by controlling the supply of a key resources to the organisation. This results in a ______for a business

Answer 22

Supplier or vendor risk

Question 23

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

Answer 23

Customer concentration risk

Question 24

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

Answer 24

Key person risk

Question 25

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?

Answer 25

Position power

Question 26

Internal sources of power includes claim or control that exist over a particular ________of a business

Answer 26

Resource

Question 27

In Pakistan, private and public limited companies are regulated by the

Answer 27

Companies Act, 1917; Securities and Exchange Commission of Pakistan