what is business?

Question 1

what is a business?

Answer 1

a business is an organization that exists to provide goods and services on a commercial basis to customers

Question 2

goods

Answer 2

goods are physical or tangible products

Question 3

services

Answer 3

services are intangible products

Question 4

why businesses exist

Answer 4

create wealth
creates jobs
develop new products to benefit society
support other business, buying materials
provide a source of tax rev for gov

Question 5

mission statement

Answer 5

sets out a business’s overall purpose to direct and stimulate the entire organization

Question 6

a mission statement will focus on:

Answer 6

the organizations values
non-financial goals
benefits of the business to community or stakeholders
how consumers are to be satisfied

Question 7

the relationship between missions and objectives

Answer 7

the objectives of a business will flow from the mission and aims. whereas a mission outlines the vision of the business in broad terms.

Question 8

businesses set objectives to:

Answer 8

provide quantifiable steps to achieve aims
clarify direction of the business
measure success against targets
provide targets to motivate and reward employees
influence potential lenders/investors

Question 9

SMART objectives

Answer 9

Specific
Measurable
Agreed
Realistic
Time-related