topic 1- what is business Flashcards
what is a business
an organisation to fulfill customers needs. It sells goods and services
why do businesses exist (2)
- satisfy customers needs
- to make a profit
what is a mission
the overall purpose of the business
what is an aim
a general statement of what the business wants to achieve
examples of aims/missions (PIGSS)
- profit
- increase market share
- growth
- survival
- social/ethical
what are public sector businesses
they are government run e.g police, schools
example of a local authority business
local council
example of a public cooperation
BBC
what are private sector businesses
businesses owned by private individuals
what does the human resources department do
it is responsible for all aspects of managing the people who work in a business
examples of activities done by HR (3)
- recruitment
- set up and manage employment rules
- organise training and appraisal
what does the marketing department do
responsible for understanding the needs and wants of customers
activities that the marketing department may do (3)
- research into the market
- set and monitor prices
- obtaining and attaining customer feedback
what dotes the production/ operations department do
organises the transformation process that turns inputs into finished goods and services
activities that the production department may do (3)
- organising a suitable method of production
- managing quality of finished goods
- ensuring that the inputs produce efficiently
what does the finance department do
manage financial resources and reports
activities that the financial department may do (3)
- allocate and monitor the use of finance
- ensuring the business has sufficient cash
- reporting on financial performance
what is an objective
a precise target of what should be achieved
why set objectives (4)
-allows to work towards the goal
-motivates everyone
-helps to make good decisions towards meeting aims
and objectives
-helps when you delegate
what two documents do limited companies sign
- a momentum of association
- and articles of association
what do limited companies both have in common (an advantage)
limited liability
what does unincorporated mean
the business is the owner- anything goes wrong the owner gets sued
2 examples of unincorporated business types
partnerships and sole-traders
what does incorporated mean
the business is separate from the owners- i anything goes wrong the business gets sued
