Principles Flashcards
What are some common features of Business Organisations?
They are comprised of a group of people working together to achieve set goals.
- Define business strategies to achieve goals
- Vision and a mission
- Culture formed by organisational values
- Structures as well as systems and procedures
- Inputs processed to provide an output
- Customers and other stakeholders
What is management and control?
The function of management to control the factors of production and business processes within the available resources to contribute to the aims and objectives of the business.
What are the aims and objectives for a private business?
- Profit
- Growth
- Diversification
- Competitiveness
- Efficiency
- To cover costs (or break-even)
- Survival
- Market leadership
What are the aims and objectives of a public business?
The aims and objectives of a public business will include:
- Service provision
- Cost control
- Value for money
- Service quality
- Meeting government standards
What are the aims and objectives for a not-for-profit organisation?
The aims and objectives for a not-for-profit business will include:
- Raise funds and accept donations in order to generate surpluses
- Invest in social, environmental, or cultural initiatives
What is financial prudence?
Planning well in advance and investing in areas where you can expect high returns.
What does financial prudence include?
Financial prudence includes:
- Budget setting
- Monitoring and control
- Monitoring cash flow
- Efficient procurement practices
What is market conduct?
The price and other market policies pursued by sellers.
What does market conduct include?
Market conduct includes:
- Pricing policies
- Marketing strategies
- Response to competitors
What is customer interest?
The concerns and preferences of buyers towards goods and services, influencing product quality, content, and pricing in the market.
What does customer interest include?
Customers interests include:
- Price
- Quality
- Customer service
- Safe and reliable products
How does the business meet the needs of customers?
The business will have an appropriate pricing policy which:
- Covers costs
- Provides a sufficient profit
- Is attractive to customers
How important is employee training to the business?
Training helps to make people more confident in their role, which directly improves morale.
How important is competent staff to the business?
Competence allows individuals to excel in their roles but they also contribute to the success of the entire organization.
What are the 5 fundamental ethics?
Integrity
Confidentiality
Professional Competence and Due Care
Objectivity
Professional Behaviour
