Business
Business
Business
Business
Business
100

What are the four sectors of business? Give an example for each.

Primary- Farming or Harvesting

Secondary- Manufacturing

Tertiary- Retailers

Quaternary- Innovation services 

100

In a decision tree, what shape is the decision node and what shape are the outcomes?


Decision node: square, outcomes: circles

100

What is the public/ private sector?

  • Private Sector
    • Goal is to make profit
    • Owned, financed and run by private individuals or entities
  • Public Sector
    • Goods and services provided by the government or local authority
    • May be free or sometimes with a small fee
    • e.g. public hospitals, museums, etc.
100

What are the internal and external factors in SWOT analysis


Internal- strengths and weaknesses 

External- opportunities and threats

100
  1. State two common operation aims 


Profit maximization, profit satisfying, growth, increasing market share, survival, maximizing short term sales revenue, maximizing shareholder value.

200

What are the differences between an intrapreneur and entrepreneur?

Entrepreneurship is the process of starting a business, company, or organization

  • The Entrepreneur
    • The founder, and usually owner
    • Big risk, big reward
    • Organizes inputs of production into goods and services (outputs)
    • Obtains money, buys the inputs needed and makes decisions.
    • Takes risks and provides the vision for the business idea
    • Assumes large financial risk
    • Provides sufficient resources
  • Intrapreneurship is similar to entrepreneurship but is done in an existing organization
  • The Intrapreneur
    • Is an employee of the organization
    • Uses resources of the company to undertake projects and therefore risks very little
    • Rewarded in the form of a paycheck
    • Does not act autonomously like an entrepreneur as he is dependent on other employees or the organization he works for
200

Describe how a Force-field analysis is constructed?


-proposal for change in the middle, -forces for change on one side, forces against change in the other, -assign scores 1-5 for each force, 1 being weak, 5 being strong

200

What does STEEPLE stand for?

  • Social, technological, economic, environmental, political, legal, ethics
200

Give two examples of how technological changes have positively affected businesses' objectives and strategies


  • E.g. focus on new product development, improve stakeholder communication, developing new and better processes, cost benefits, competitive advantage, outsourcing and offshoring
200

How might changes in government's attitude towards private ownership affect businesses?


 

  • If a government is committed to nationalization of private businesses and high taxes on private wealth then this will discourage privately owned businesses from setting up or expanding in this country.
300

What are the 6Ms of a fishbone diagram?

Methods, Machines, Manpower, Materials, Measurement, 'Mother nature'

300

List 3 possible economic factors that may impact a business


  • E.g. economic growth or recession, unemployment, interest rates, exchange rates, fiscal/monetary policy
300
  1. The difference between vision and mission statement?  


  • Vision

    • Describes a desired position for the company in the far future (“Where do we want to be?”)
  • Mission

    • Purpose of business, states what the business is and does
    • How the vision statement will be achieved (“How do we get there?”
300
  1. State two disincentives for corporate social responsibility 

Disincentives:

  • High compliance costs can lower profits
  • Forced to use materials that are specialized and may reduce profit
  • Ethics are not universal or unchanging anyway
  • Lower profits may decrease personal bonuses which may lead to greediness
300

Random Question:

What is the order of planets

Mercury

Venus

Earth

Mars

Jupiter

Saturn

Uranus

Neptune

400

Name the components of a business plan


  • Report detailing aims and objectives of a business
  • Planning tool that serves as a blueprint to address the issues of a startup business
  • Meant for investors/banks to help them decide on whether to invest/approve loans
  • Elements of a business plan
    • Business – name of the business, type of the business, statement of aims and objectives, details of the owner
    • Product – details of goods/services, operations and equipment needed, suppliers, price
    • Market – who you’re selling to, market profile, competition (strengths and weaknesses)
    • Finance – money, start-up costs
    • Personnel – employees and workforce, skills
    • Marketing – marketing mix employed by business
400
  1. Please draw a full Ansoff Matrix diagram 


DRAW IT

400

Name 6 stakeholders

Employees

Managers

Shareholders

Government

Customer

Community

Supplier

Bank

Competitors

(any other creditors)

400

Explain 3 examples of stakeholder conflicts

Customers and Employees

Suppliers and Managers

Local community and Customers/ Managers

Shareholders and Managers

and Explain

400

Identify the interest of Suppliers and Managers

Suppliers:

Speed of payment

Level and regularity of order

Fairness of treatment

 

Managers:
Employment security

Good conditions of employment

Salary and benefits that compare well

500

Name the 4 types of for-profit organizations we learnt about. Give a description and list 1 advantage and 1 disadvantage.

  • Sole trader
    • Business that is completely owned and controlled by just one person
    • Simplest form of business
    • Owned by a single person who assumes all profits and liabilities
    • Advantages
      • Little legal requirements for setup
      • All the income goes to one man
      • Less restrictions and easy decision-making
    • Disadvantages
      • All the income tax is shouldered by one man
      • Unlimited liability (owner is the same legal entity as the business) and all the debt incurred by the business is put on the owner
  • Partnership
    • Company ran by two or more individuals who form a partnership
    • Each person contributes money and resources, as well as sharing the responsibilities of managing a business.
    • Turns into a corporation if there >15 partners and will pay corporate tax.
    • Has a deed of partnership stating the responsibility of each partner
    • Involves presence of “silent” or “sleeping” partners, who do not make decisions, merely giving money to the business and earning profit
    • Advantages
      • Liability is spread around
      • Range of skills
      • Higher capital
    • Disadvantages
      • Unlimited liability despite being spread out between partners
      • Slower decision-making
  • Private limited company (LTD)
    • Shareholders are limited to family, friends, business partners
    • Shares cannot be sold to the public
    • Type of incorporation
      • Owner and company are separate entities
      • Results in limited liability
    • Registered at the Securities and Exchange Commision (SEC)
    • Advantages
      • Limited liability – when the company is sued or incurs losses, all a shareholder will lose is his stock in the business.
      • Higher capital, higher capacity for expansion
    • Disadvantages
      • More restrictions
      • Corporate taxes (higher)
  • Public limited company (PLC)
    • Company whose shares are listed on a stock exchange and can be freely bought and sold by anyone
    • Required by law to publish their complete and true financial position
    • Type of incorporation
    • Must conduct shareholders’ meetings
    • An LTD can convert to PLC by offering stock market flotation or an initial public offering (IPO)
    • Advantages
      • More capital raised from selling stock
      • Limited liability
      • Continuity after death, freely transferable
      • Higher capacity for expansion
    • Disadvantages
      • Possibility of a hostile take-over through shares, control can change unexpectedly and be lost by the original owner
      • Much more restrictions
      • Corporate tax
500

Calculate the expected value for indoors and outdoors and decide on the best option.

Answer: Second picture, outdoor is best.

500

Name the components of a business plan.


  • Report detailing aims and objectives of a business
  • Planning tool that serves as a blueprint to address the issues of a startup business
  • Meant for investors/banks to help them decide on whether to invest/approve loans
  • Elements of a business plan
    • Business – name of the business, type of the business, statement of aims and objectives, details of the owner
    • Product – details of goods/services, operations and equipment needed, suppliers, price
    • Market – who you’re selling to, market profile, competition (strengths and weaknesses)
    • Finance – money, start-up costs
    • Personnel – employees and workforce, skills
    • Marketing – marketing mix employed by business
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