Introduction to Business Management
What is the primary purpose of a business?
To satisfy customers' needs and wants by providing goods or services.
What is the role of human resource management (HRM)?
To manage people in the organization effectively, ensuring their development and satisfaction.
What are the two main sources of finance for a business?
Internal and external sources.
What does SWOT stand for in marketing planning?
Strengths, Weaknesses, Opportunities, Threats.
What is the main goal of operations management?
To ensure the efficient production of goods and services.
What are the two main types of business activities?
Production and service.
What is an organizational chart?
A diagram showing the structure of an organization and the relationships between roles.
Define profit.
The difference between total revenue and total costs.
What is market research?
The process of collecting and analyzing data about consumers and market conditions.
What is location planning?
The process of choosing where a business operates is referred to as this.
Name one difference between a sole proprietorship(sole trader) and a partnership.
A sole proprietorship(sole trader) is owned by one person, while a partnership is owned by two or more people.
Name one key difference between leadership and management.
Leadership focuses on inspiring people, while management focuses on planning and organizing tasks.
What is a liquidity ratio used for?
To measure a company’s ability to meet its short-term obligations.
What is the marketing mix?
A set of seven factors (Product, Price, Place, Promotion, People, Process, Physical evidence) used to market products effectively.
What is lean production?
The process of choosing where a business operates is referred to as this.
What does the term "value-added" mean in business?
The difference between the cost of inputs and the price charged for the final product.
What is Maslow’s hierarchy of needs used for in HRM?
To identify employee needs and motivate them accordingly.
What is the main purpose of a cash flow forecast?
To predict the inflow and outflow of cash in a business over a period.
What is international marketing?
Marketing of goods and services across different countries.
What is break-even analysis?
A chart showing the relationship between sales revenue, fixed costs, and variable costs is used in this type of analysis.
Define "opportunity cost" in the context of business decisions.
The next best alternative forgone when a decision is made.
What is organizational culture?
The shared values, beliefs, and norms that influence how people work and interact in a company.
What is investment appraisal?
The process of evaluating the profitability or desirability of an investment project.
What is sales forecasting?
The process of estimating future sales based on historical data and market analysis.
What are contingency plans?
Plans developed to address potential crises are known as this.