SAC Revision 1 Flashcards
Four measures to classify the size of a business
- Market Share
- Level of employment
- Level of independence of operation
- Source of finance
Explain three features of an organisation
- Defined purpose
- Involves human and physical resources
- Relationships with either internal or external sources
Three different types of businesses
- Sole proprietorship
- Partnership
- Company
Independence of operation
Business that operates on its own
Define market share
Proportion of the market held by a business
Define social responsibility
An organisation has practices that are above the requirements of law.
Define Corporate philanthropy
Cooperations donating some of their profits to charitable causes.
Cadbury Fair trade requirements
Better prices, decent working conditions and fair terms of trade for workers in the developing world.
Define macro environment
The broad operating conditions in which a business operates in.
Define business ethics
Moral standards and doing the right thing in the interest of all stake holders
Define stakeholder
Individuals and groups that have a vested interest in the operations of an organisation.
Define internal environment
The internal functions, pressures and activities which occur within the organisation.
Define operating environment
The environment immediately external to the environment.
