NATURE OF MANAGEMENT

Question 1

Interpersonal

Answer 1

The ability to communicate or interact well with other people.

Question 2

Communication

Answer 2

Business communication is exchanging information in order to promote an organization’s goals, objectives, aims, and activities, as well as increase profits within the company.

Question 3

Strategic thinking

Answer 3

Strategic thinking helps business managers review policy issues, perform long term planning, set goals and determine priorities, and identify potential risks and opportunities

Question 4

Vision

Answer 4

A vision is a vivid mental image of what you want your business to be at some point in the future, based on your goals and aspirations.

Question 5

Problem-solving

Answer 5

Problem-solving in business is defined as implementing processes that reduce or remove obstacles that are preventing you or others from accomplishing operational and strategic business goals

Question 6

Decision making

Answer 6

Decision-making process is a continuous and indispensable component of managing any organization or business activities

Question 7

Flexibility

Answer 7

The ability of a company to make whatever internal changes are necessary to respond effectively to the changing outward environment, as quickly as possible.

Question 8

Adaptability to change

Answer 8

Adaptability is the ability to adjust your approach or actions in response to changes in your external environment.

Question 9

Reconciling the conflicting interests of stakeholders

Answer 9

Society and business depend on each other. You also need to establish priorities based on predictability, competition and capabilities.

Question 10

Profits

Answer 10

A financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something.

Question 11

Market Share

Answer 11

The portion of a market controlled by a particular company or product

Question 12

Growth

Answer 12

The process of increasing in size

Question 13

Share Price

Answer 13

A share price is the price of a single share of a number of saleable stocks of a company, derivative or other financial assets

Question 14

Social

Answer 14

The facts and experiences that influence individuals’ personality, attitudes and lifestyle

Question 15

Environmental

Answer 15

External factors (political, legal, social, technological, economic) that surround the business and influence its marketing operations.

Question 16

Innovation

Answer 16

A new method, idea, product, etc.

Question 17

Motivation

Answer 17

A reason or reasons for acting or behaving in a particular way

Question 18

Mentoring

Answer 18

Advise or train (someone, especially a younger colleague)

Question 19

Cash flow statement

Answer 19

A cash flow statement shows the movement of:
Cash payments and cash receipts, it allows a business to monitor liquidity (or determine if they are ‘Liquid’, which means they have the cash to cover their debts in the short term).

Question 20

Cash receipts

Answer 20

inflows, such as money from sales

Question 21

Cash payments

Answer 21

outflows, such as paying wages

Question 22

Income statement

Answer 22

Also called a revenue statement or a statement of financial statement shows whether a business has made a profit by recording revenue and expenses over a period of time.

Question 23

COGS

Answer 23

(cost of goods sold) - the direct cost of producing a good

Opening stock + purchases - closing stock

Question 24

Gross profit

Answer 24

how much money the business makes from selling a product

Sales revenue - COGS

Question 25

Net profit

Answer 25

the amount remaining after subtracting all expenses and COGS from the business revenue Gross profit - expenses

Question 26

Balance sheet

Answer 26

provides a snapshot of a business at a point in time. It shows the financial position of the business, in terms of assets, liabilities, and owner's equity.

Question 27

Assets = liabilities + shareholders’ equity (owners)

Answer 27

Assets = liabilities + shareholders’ equity (owners)

Question 28

Assets

Answer 28

On the left of the balance sheet Shows items of value that help generate revenue and sales. i.e. Factory, equipment, cash

Question 29

Current asset

Answer 29

Short term assets, Already liquid, Expected to be turned to cash 12 months. I.e. Cash, accounts receivable

Question 30

Non- current asset

Answer 30

Long term assets, Held by a business for more than 12 months. I.e. Furniture, car, building, equipment (machines/plant).

Question 31

Liabilities

Answer 31

On the right of the balance sheet Owed to outside parties (loans & debts). I.e. Mortgage, credit cards, bank overdraft

Question 32

Current liabilities

Answer 32

Short term loans Repaid within 12 months. I.e. Overdraft, accounts payable, credit card

Question 33

Non-current liabilities

Answer 33

Loans that will be repaid over a period longer than 12 months. I.e. Mortgage, bank loan

Question 34

Owner’s equity

Answer 34

On the bottom right, Owed to the owners (net worth). I.e. Retained profits, owners capital

Question 35

Accounts receivable

Answer 35

The total amount owed by customers for goods bought on credit, the money the business expects to receive from customers in the short term. Current Liability

Question 36

Accounts payable

Answer 36

The total amount owed to suppliers for goods bought on credit Current Liability

Question 37

Overdraft

Answer 37

Short term financial arrangement with a bank to use bank funds up to a specified amount Current Liability

Question 38

Inventory

Answer 38

Items available for sale, also called stock Current assets

Question 39

Mortgage

Answer 39

Long term loan typically for property Non - Current Liability

Question 40

Cash

Answer 40

Bank balance Current asset

Question 41

Capital

Answer 41

Money invested by owners Owners equity

Question 42

Drawings

Answer 42

Money taken out by owners which reduces owner’s equity when shown in it’s brackets Owners equity

Question 43

Retained profits

Answer 43

Net profit from previous years that has been reinvested back into the business rather than paid to owners as dividends Owners equity