Unit 1: Business and its Environment
Someone who takes the financial risk of starting and managing a new venture.
What is an Entrepreneur?
The art of motivating a group of people towards achieving a common objective.
The market price that equates supply and demand for a product.
What is equilibrium price?
Intangible capital of a business that includes human capital (well trained and knowledgeable employees), structural capita (databases and information systems) and relational capital (good links with supplier and customers)
What is intellectual capital?
The ability of a firm to be able to pay its short-term debts.
What is liquidity?
A business with mainly social objectives that reinvests most profits into benefitting society rather than maximizing returns to owners.
What is a social enterprise?
The ability of managers to understand their own emotions, and those of the people they work with, to achieve better business performance.
What is emotional intelligence?
Identifying and exploiting a small segment of a larger market by developing products to suit it.
What is niche marketing?
Two inputs within the transformation process.
What are Resources, Land, Labor and Capital?
The purchase of assets that are expected to last for more than one year, such as building and machinery.
What is capital expenditure?
Two of the three main objectives of all social enterprises.
What are economic, social and environmental? (2 of 3)
The internal and external factors that stimulate people to take actions that lead to achieving a goal.
What is motivation?
Research that leads to numerical results that can be statistically analyzed.
What is quantitative research?
One of the measures of productivity.
What are labor productivity (number of units per worker) and capital productivity?
Two of the three main sources of short-term external finance.
What are bank overdrafts, trade credit, and debt factoring?
Boasts the advantages of an owner who is in complete control and keeps all profits.
What is a sole-trader organization/company?
Leadership style that leaves much of the decision-making to the workforce -- a 'hands-off' approach and the reverse of autocratic style.
What is Laissez-faire leadership?
When the population has been stratified and the interviewer selects and appropriate number of respondents from each stratum.
What is quota sampling?
The ability of a business to vary both the level of production and the range of products following changes in customer demand.
What is operational flexibility?
An asset is sold to a company that agrees to pay fixed repayments over an agreed time period -- the asset belongs to the company.
What is a hire purchase?
Legal formality that states the name and address of the company as well as the maximum share capital for which the company seeks authorization; it must be completed before a company can be established.
What is a Memorandum of Association?
A sense of inner fulfillment reached by feeling enriched and developed by what one has learned and achieved.
What is self-actualization?
The formula used to calculate market share.
What is (firm's sales in time period/total market sales in time period) x100?
Factors that cause average costs of productions to rise when the scale of operation is increased.
What are diseconomies of scale?
An internal source of finance for limited companies.
What is retained profit, sales of assets, and reductions in working capital?