Topic 1: Nature of Business

Question 1

What are the resources a business requires to have to a produce a product?

Answer 1

Inputs

Question 2

What is the name for what a business produces?

Answer 2

Outputs

Question 3

What is the remaining sales revenue of a business, after expenses have been deducted, called?

Answer 3

Profit

Question 4

What is the money called that a business receives from the sales of its products?

Answer 4

Sales revenue

Question 5

If a private or public company has more than one owner, what are they called?

Answer 5

Shareholders

Question 6

What is defined as “ the development of new products or improvement of already existing products”?

Answer 6

Innovation

Question 7

What are the three categories of business goals?

Answer 7

Strategical, Tactical, Operational

Question 8

What does STOP stand for?

Answer 8

Strategic, Tactical, Operational, Plans

Question 9

What is defined as a long-term goal? Last 3-5 years.

Answer 9

Strategic goals

Question 10

What is defined as a medium-term goal? Lasts 1-2 years.

Answer 10

Tactical goals

Question 11

What is defined as a short term goal? Day-to-day.

Answer 11

Operational goals

Question 12

What are the four types of goals a business will have?

Answer 12

Financial, Personal, Social, Corporate Social Responsibility (CSR)

Question 13

What size business has fewer than 100 employees?

Answer 13

Small business

Question 14

What size business has fewer than 5 employees?

Answer 14

Micro-business

Question 15

What does SOHO stand for?

Answer 15

Small Office Home Office

Question 16

What size business has between 100-200 employees?

Answer 16

Medium-sized business

Question 17

What size business has over 200 employees?

Answer 17

Large business

Question 18

Which industry is described as “…products are directly associated with natural resources”

Answer 18

Primary industry

Question 19

Which industry is described as “…take the output from primary industries and process it into a finishes product”

Answer 19

Secondary industry

Question 20

Which industry is described as “…involves people performing a vast range of services”

Answer 20

Tertiary industry

Question 21

What are the five indutries?

Answer 21

Primary, secondary, tertiary, quinary, quaternary

Question 22

Which industry is describe as “services that involve the transfer and processing of information and knowledge”?

Answer 22

Quaternary industries

Question 23

Which industry is described as “services that have traditionally been performed in the home”?

Answer 23

Quinary Industries

Question 24

What is it called if a single person owns a business?

Answer 24

Sole Trader

Question 25

What is it called if two people own a business?

Answer 25

Partnership

Question 26

What is it called if its an organisation that holds property or income for the benefits of others?

Answer 26

Trust

Question 27

What is it called if its an organisation seperate from its shareholders?

Answer 27

Company

Question 28

What is it called if its a organisation designed to serve the interest of its members?

Answer 28

Cooperative

Question 29

What is the first stage of the business life cycle?

Answer 29

Establishment phase

Question 30

What is the second stage of the business life cycle?

Answer 30

Growth phase

Question 31

What is the third stage of the business life cycle?

Answer 31

Maturity phase

Question 32

What is the last stage of the business life cycle?

Answer 32

Post-Maturity phase

Question 33

What are the three things that can happen in the post-maturity phase of the business life cycle?

Answer 33

Renewal, Decline, Steady state

Question 34

What are three internal influences on a business?

Answer 34

Products, business culture, staffing

Question 35

What are three external influences on a business?

Answer 35

international influences, competitors, climate

Question 36

What are the influences that the business has no control over?

Answer 36

External influences

Question 37

What are the influences that the business has some control over?

Answer 37

Internal influences

Question 38

What does SMART stand for?

Answer 38

Specific, Measurable, Achievable, Realistic, Time

Question 39

What is the introduction of a business report called?

Answer 39

Executive Summary

Question 40

What is the conclusion of a business report called?

Answer 40

Summary of recommendations