ECONOMIC ACTIVITY
Three main classifications of economic activities
What is Primary, Secondary and Tertiary Economic Activities?
A business owned by one person.
What/Who is sole proprietorship?
Perform the role of a compass or guideline in keeping the business on track.
What business objectives?
This type of communication makes good use of the
‘grapevine’.
What is informal communication?
Current Assets – Current Liabilities
What is working Capital?
Activity which takes the natural resources from the earth.
What is Primary Production?
A business owned by two or more persons with the common view of making a profit.
What is a Partnership?
Captures attitudes and expectations of employees, Focus of activities for people to identify with Overtime, provides framework for strategies in the business
What is the Mission Statement?
This is a disagreement that exists between two or more individuals.
What is conflict?
These measure how well the business is doing in terms of profit
What are Profitability ratios?
Agriculture, mining, fishing and forestry.
What are examples of Primary Production?
Nationalized industries, public corporation, statutory boards, local authorities and government departments.
What are the branches of the Public Sector?
Objectives act as a guide for employees and the employer to follow in order to propel the business forward and thus attain its goal
What is an importance of objectives?
This function of management deals with the recruitment, selection, development and compensation of the staff
What is Staffing?
This represents any money that is borrowed by the business which must be repaid with interest.
What is Debt capital?
Manufacturing, processing and construction which transform raw materials into finished or semi-finished goods.
What is Secondary Production?
This means that when one partner leaves a partnership the entire partnership comes to a legal end and may be restarted.
What is lack of continuity?
Objectives are clearly defined, leaving no room for ambiguity.
What are specific objectives?
A leader using this leadership style seeks to inspire his/her subordinates to achieve a shared goal or objective
Transformational leadership
The time that cash inflows from a capital investment will take to be equal with the initial outflow of funds.
What is a Payback period?
The more developed countries tend to be very sophisticated in their approach to offering services.
What is Tertiary Production?
What is a characteristic of Tertiary Production?
A corporation, also known as a limited company, is a
legal entity that is separate and distinct from its members (shareholders).
What is corporation or limited liability company?
Gives the company direction. It is the future of the business, which then provides the purpose.
What is a Vision Statement?
Where the manager seeks to emphasise the areas of agreement but downplay the areas of disagreement.
What is Smoothing
Sales - Cost of Goods Sold
What is Gross Profit?