Topic 1: Nature of Business Flashcards
What are the resources a business requires to have to a produce a product?
Inputs
What is the name for what a business produces?
Outputs
What is the remaining sales revenue of a business, after expenses have been deducted, called?
Profit
What is the money called that a business receives from the sales of its products?
Sales revenue
If a private or public company has more than one owner, what are they called?
Shareholders
What is defined as “ the development of new products or improvement of already existing products”?
Innovation
What are the three categories of business goals?
Strategical, Tactical, Operational
What does STOP stand for?
Strategic, Tactical, Operational, Plans
What is defined as a long-term goal? Last 3-5 years.
Strategic goals
What is defined as a medium-term goal? Lasts 1-2 years.
Tactical goals
What is defined as a short term goal? Day-to-day.
Operational goals
What are the four types of goals a business will have?
Financial, Personal, Social, Corporate Social Responsibility (CSR)
What size business has fewer than 100 employees?
Small business
What size business has fewer than 5 employees?
Micro-business
What does SOHO stand for?
Small Office Home Office
What size business has between 100-200 employees?
Medium-sized business
What size business has over 200 employees?
Large business
Which industry is described as “…products are directly associated with natural resources”
Primary industry
Which industry is described as “…take the output from primary industries and process it into a finishes product”
Secondary industry
Which industry is described as “…involves people performing a vast range of services”
Tertiary industry
What are the five indutries?
Primary, secondary, tertiary, quinary, quaternary
Which industry is describe as “services that involve the transfer and processing of information and knowledge”?
Quaternary industries
Which industry is described as “services that have traditionally been performed in the home”?
Quinary Industries
What is it called if a single person owns a business?
Sole Trader
What is it called if two people own a business?
Partnership
What is it called if its an organisation that holds property or income for the benefits of others?
Trust
What is it called if its an organisation seperate from its shareholders?
Company
What is it called if its a organisation designed to serve the interest of its members?
Cooperative
What is the first stage of the business life cycle?
Establishment phase
What is the second stage of the business life cycle?
Growth phase
What is the third stage of the business life cycle?
Maturity phase
What is the last stage of the business life cycle?
Post-Maturity phase
What are the three things that can happen in the post-maturity phase of the business life cycle?
Renewal, Decline, Steady state
What are three internal influences on a business?
Products, business culture, staffing
What are three external influences on a business?
international influences, competitors, climate
What are the influences that the business has no control over?
External influences
What are the influences that the business has some control over?
Internal influences
What does SMART stand for?
Specific, Measurable, Achievable, Realistic, Time
What is the introduction of a business report called?
Executive Summary
What is the conclusion of a business report called?
Summary of recommendations
