what is business

Question 1

what is a mission statement

Answer 1

an overall aim communicated to all stakeholders

Question 2

what is a business objective

Answer 2

a small target design to work towards a bigger aim/mission statement

Question 3

what is a corporate objective

Answer 3

a large objective decided up by an authority position focusing on the mission

Question 4

what is a functional objective

Answer 4

more store-based, not acknowledged higher the chain of command

Question 5

what is
SMART

Answer 5

specific
measurable
achievable
relevant
time based

Question 6

when SMART objectives what to consider

Answer 6

percentages
a time (in a year)
type of objective (the store or whole company)

Question 7

benefits of public limited company (plc)

Answer 7

-raise capital for finance growth
-easier to get a bank loan
-publicity

Question 8

drawbacks of public limited company

Answer 8

-expensive
-can lose control
-directors may have different aims to shareholders

Question 9

what are co operatives

Answer 9

they are owned and run by their members who can be customers or groups of businesses

Question 10

what is a mission statement

Answer 10

businesses usually write on of them to communicate mission goals stakeholders

Question 11

what are corporate objectives

Answer 11

these are overall goals that the entire organisation is trying to achieve

Question 12

what are functional objectives

Answer 12

these are objectives that the marketing, operations, finance and HR departments might set themselves

Question 13

what are co-operatives

Answer 13

-they are owned and run by members who can be customers or groups of businesses
-they are run on principals of shares ownership,shares voice and shares profits

Question 14

what is a good

Answer 14

a physical product that you can touch such as a house or a car

Question 15

what is a service

Answer 15

an intangible item such as a haircut, insurance or decorating

Question 16

what is a product

Answer 16

means exactly the same as a good

Question 17

what is employment

Answer 17

the state of having paid work

Question 18

what is an employee

Answer 18

a person who works for a wage or salary

Question 19

what is a large business

Answer 19

a business that has 250 employee or more

Question 20

what is added value

Answer 20

is equivalent to the increase in value that a business creates by undertaking the production process. a business owner would need to calculate the difference between the price of the finished product or service and the cost of the inputs

Question 21

what is capital

Answer 21

wealth in the form of money or other assets owned by a person or organisation

Question 22

what is an entrepreneur

Answer 22

an individual who spots an opportunity and who shows initiative and a willingness to take risks in order to benefit from the potential rewards

Question 23

what is a risk

Answer 23

the probability or threat of damage,injury, liability, loss or any other negative occurrence that is caused by external or internal factors. they could be avoided by taking preventative action

Question 24

the role of shareholders

Answer 24

-they have voting rights-> more they shares more rights
-shareholders attend a annual general meeting where shareholders can vote a companies issues

Question 25

what is market capitalisation

Answer 25

the total value of the issued shares of a PLC and provides an indication of the current value of the company

Question 26

what is a liabilities

Answer 26

something you owe to another business

Question 27

what is corporation tax

Answer 27

is something that companies need to pay on profits

Question 28

revenue calc

Answer 28

selling price X quantity sold= revenue

Question 29

whats an average cost

Answer 29

the total cost of production divided by the output to give an amount for each single unit of output

Question 30

what’s 2 parts of sustainability

Answer 30

-ensures long term survival -funds for investment

Question 31

what are 2 parts of growth and expansion

Answer 31

-funds for r&d -attracted investors and financing

Question 32

what are 2 parts of stakeholder value

Answer 32

-provides return to owners or shareholders -builds trust with suppliers

Question 33

what are 2 parts of employee benefits

Answer 33

-enhances job security -provides resources for training and development

Question 34

what’s a mission statement

Answer 34

overall aim communicated to all stakeholders

Question 35

what is a business objective

Answer 35

a small target designed to work towards a bigger aim/mission statement

Question 36

what is a corporate objective

Answer 36

large objectives decide upon by an authority position of using on the mission

Question 37

what is a functional objective

Answer 37

more store based not acknowledged higher up the chain of command

Question 38

how do corporate objectives and functional objectives link

Answer 38

you create your functional objectives based on your corporate objectives

Question 39

SMART objectives

Answer 39

Specific, measurable, achievable, relevant and time based

Question 40

the external environment affect businesses PESTLE

Answer 40

political economic social tech legal environmental

Question 41

3 advantages and 2 disadvantages of being a PLC

Answer 41

+ -easier to raise capital for financial growth -publicity -easier to get a bank loan - -expensive - can lose control

Question 42

what is limited liability

Answer 42

if the company accumulates debt the personal assets of the owner are safe

Question 43

what is franchising

Answer 43

where a business lets another party licensee their branding operations or products in exchange for a % mcdonald’s, Starbucks

Question 44

The Five Levels of Maslow’s Hierarchy

Answer 44

1) Physiological Needs – Basic survival (food, water, shelter, pay). 2) Safety Needs – Job security, safe working conditions. 3)Social Needs – Belonging, teamwork, friendly work environment. 4)Esteem Needs – Recognition, promotion opportunities, respect. 5)Self-Actualisation – Personal growth, fulfilling potential, challenging work.

Question 45

How Businesses Apply Maslow’s Theory

Answer 45

-Higher wages & benefits → Satisfies physiological needs. -Job security & contracts → Satisfies safety needs. -Team-building & good culture → Satisfies social needs. -Recognition & promotions → Satisfies esteem needs. -Opportunities for growth → Satisfies self-actualisation.

Question 46

Criticisms of Maslow’s Theory

Answer 46

-Needs don’t always follow a strict order. -Cultural differences affect motivation. -Difficult to measure employee needs. -Other factors (e.g., financial incentives) may be stronger motivators.

Question 47

what is primary stakeholders

Answer 47

those that are directly affected by the actions of the business

Question 48

what are secondary stakeholders

Answer 48

do not have a direct relationship with a business although they can still be impacted by it

Question 49

what is stakeholder mapping

Answer 49

-a way of analysing the key stakeholders before making decisions in business -the map is done by their power and influence