Unit 1 - Internal Factors Affecting Business Flashcards
1
Q
What are the internal factors that can affect a business?
A
Financial
Human Resources
Current Technology
2
Q
Uses of Finance
A
- Research and Developement
- Software upgrades
- Opening new branches
- Hiring new employees
- Increasing employee wages
3
Q
How does lack of finance affect a business?
A
If a business does not have enough money, it will be difficult for it to:
-Pay staff
-Buy Machinery
-Grow the business
-Advertise
4
Q
How can a business gain finance?
A
- Bank Loans
- Grants
- Personal savings
- Selling Shares
- Commercial mortgage
5
Q
What are Human Resources?
A
The workforce of a business (employees, workers, managers etc.)
6
Q
What can managers do to affect a business?
A
- Make good/bad decisions that can affect productivity, motivation, complaints & growth
- Create good policies
- Hire/fire employees
- Set budgets
- Conduct appraisals
7
Q
How can employees affect a business?
A
- Taking industrial action (strikes)
- Productivity
- Absenteeism
- Training Level
- Customer Satisfaction
- Job performance
8
Q
Examples of Technology a business may use:
A
- Special software
- High quality hardware
- Social media
- Apps
9
Q
What can technology be used for in business?
A
- Boosting profile
- Long distance communication between employees
- Advertising and customer relationship developement
10
Q
Why does a business need to invest in up-to-date technology?
A
- To keep up with customer requirements
- To maintain a competitive edge over market rivals
