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True or false? Stakeholders are always shareholders in a corporation, but shareholders are not always stakeholders.
False, other way around: Shareholders are always stakeholders in a corporation, but stakeholders are not always shareholders.
What is the first step that every business must do?
The first step for every business is to start a market research that gives you different opportunities to start a successful business.
How does the HR department indirectly affect customers?
The human resources department handles all aspects related to the workforce and involves all aspects of business operations related to staff (personnel) within an organization. Due to this responsibility, they affect the efficiency of the organization, which in results impacts how good or bad a customer can receive
What type of value do businesses add to a community and its people?
Businesses are created by entrepreneurs and they exist in order to add value to people and the community. Businesses also exist in order to gain or reach a certain profit.
State the four factors of Production:
Land, Labor, Capital, Entrepreneurship
Compare the purpose of a shareholder and a stakeholder. Which one has a greater need for the company to succeed over a longer term? Why?
A shareholder owns part of a public company through shares of stock, while a stakeholder has an interest in the performance of a company for reasons other than stock performance or appreciation. These reasons often mean that the stakeholder has a greater need for the company to succeed over a longer term.
How do entrepreneurs and intrapreneurs differ from each other?
An entrepreneur runs their own company. They have complete freedom and responsibility for better or for worse. An intrapreneur is responsible for innovating within an existing organization.
How do the finance and accounts departments benefit big businesses?
The finance and account responsible for ensuring that the business has enough money in order to conduct its daily operations and also managing the organization's money and maintaining accurate accounts (financial records) of the firm’s funds. Due to this responsibility, they ensure the efficiency of the business by providing the company a healthy financial status.
What role does the financial department play in a business?
Management of company’s investments and cash flow.
Financial Reporting and analysis.
Advising long-term financing.
Describe what a sole trader is. List the advantages and disadvantages that come with being a sole trader?
An individual trading as a sole trader is also referred to as self-employed. A sole trader business structure, with its ease of set up and full control, makes it an appealing business structure.
Advantages (Any/all of the following): Be your own boss, keep all the profits, easy to set up, low start-up costs, maximum privacy, easy to change the business structure
Disadvantages (Any/all of the following): Unlimited liability, tax may not be efficient, be the decision maker, less attractive to clients, difficult to secure funding