Unit 1
A business formed by two or more people to carry on a business, together, with shared capital investment and, usually, shared responsibilities.
Partnership
The art of motivating a group of people towards achieving a common objective.
Leadership
_______ is the management process responsible for identifying, anticipating and satisfying consumers' requirements profitably.
Marketing
What is production?
It is the conversion of inputs into outputs.
Providing financial services for poor and low-income customers who do not have access to banking services is called?
Microfinance
The name of the physical goods used by industry to aid in the production of other goods and services?
Capital goods
Figurehead, leader, and liaison
What is the market share formula?
Firm's sales in time period divided by total market sales in time period times 100.
Producing output at the highest ratio of output to input is?
Efficiency
What does start-up capital mean?
Start-up capital is the capital needed by an entrepreneur to set up a business.
What makes up the workforce of a business?
Labor
What are the functions of management?
Setting objectives and planning, organizing resources to meet the objectives, directing and motivating staff, and coordinating activities.
What are the four Cs?
Customer solution, cost to customer, communication with customer, and convenience to customer.
output divided by capital employed
What is the responsibility of shareholders?
The responsibility is that capital invested cannot be claimed back from the company except when it ceases trading.
What organizations have separate legal personality and shareholders have limited liability?
Private limited companies
What did McGregor Theory X and Y state?
Theory X stated that managers view their workers as lazy, people that dislike their work, and are unprepared to accept responsibilities.
Theory Y stated that workers did enjoy work and that they found it as natural as rest or play.
_______ ______ the goals set for the marketing department to help the business achieve its overall objectives.
Marketing objectives
Pay levels having to be raised in order to attract and retain staff is a problem of?
Low unemployment rate
What is the gross profit margin formula?
Gross profit divided by revenue times 100
________ has fewer chances of new business failing as an established brand and product are being used.
Franchise
What are the main features of paternalistic style of leadership?
Managers do what they think is best for the workers, some consultation might take place, but the final decisions are taken by the managers- there is no true participation in decision-making, and managers want workers to be happy in their jobs..
What are the two main uses of PED (price elasticity of demand)in business?
Making more accurate sales forecasts and assisting in pricing decisions.
What is a advantage and disadvantage of multi-site locations?
Advantage- lower transportation cost, greater convenience for consumers, production-based companies reduce the risk of supply disruption if there are technical or industrial-relations problems in one factory, opportunities for delegation of authority to regional managers from head office, and cost advantage of multi-sites in different countries.
Disadvantage- coordination problems between the locations, potential lack of control and direction from senior management based at head office, different countries- the business must adapt to these differences
Why is flexibility an important factor to consider when making a financial choice?
When a firm has a variable need for finance, a flexible form of finance is better than a long-term and inflexible source.