1.1 What is a business?
Which are the business functions?
Human Resources, Finance, Marketing and Operations
Mention a disadvantage of being a sole trader?
- Unlimited liability: he/she can lose his/her personal possessions if the business collapse.
- Limited sources of finance.
- Workload and stress.
What is a Vision Statement?
An Organisation's long-term goal to inspire and motivate everyone involved in it.
Internal stakeholders: shareholders, managers, employees.
External stakeholders: customers, suppliers, pressure groups, Government
What does "SWOT" in Swot Analysis stand for?
Strenghts, weaknesses, opportunities and threats.
What is the difference between Goods and Services?
Goods are tangible, Services are intangible.
Mention the difference between Public Sector and Publicly held Companies.
Public Sector: part of the economy controlled by the Government.
Publicly held companies: limited liability business that allows shareholders to buy and sell shares in the company via a public Stock Exchange.
Define Corporate Social Responsability
Definition: is the conscientious consideration of ethical and environmental practice related to business activity.
Define external stakeholder
Individuals or organizations that do not form part of the business but have a direct interest or involvement in the organization.
External factors can be controlled by an organisation. True or false?
FALSE
Which are the business sectors? Mention a key word to each
Primary: extraction
Secondary: processing/manufacturing
Tertiary: Services
Quaternary: knowledge that generates value
Define Non-Profit social enterprises
Business run in a commercial-like manner but without profit being the main goal.
Mention 3 reasons why organizational objectives are important:
- To measure and control
- To motivate
- To direct
What is conflict?
Situations where people are in disagreement due to different opinions creating friction.
What is the purpose of the SWOT analysis? What is it for?
To assess aspects of the internal and external factors affecting their business for decision-making.
What is a business?
An Organization that is responsible for processing inputs to produce goods or services.
What does limited liability mean?
Shareholders do not stand to lose personal belongings if the company goes into bankruptcy.
Which are the 4 common business objectives?
Growth, Profit, Ethical objectives and Protecting shareholder value.
What is the difference between stakeholder and shareholder?
Stakeholder: any individual or organization with a direct interest in a company.
Shareholder: the owners of the company that are part of the internal stakeholders.
Frameworks representing different ways of producing and consuming goods and services to reduce environmental pressure from the economic activity.
Mention 3 challenges to start up a business
Cash flow problems /Financial problems.
Legalities / compliance.
People management problems.
High production costs.
Production problems.
Poor location.
Mention 3 features of a Partnership
- Business owned by 2 or more people.
- Financed mainly from personal funds.
- At least one owner must have unlimited liability.
- Partners can be "silent partners" (not active, but with a financial stake on it).
Define strategies and tactics.
- Strategies: the medium to long-term plans of action to achieve the strategic objectives of an organization.
- Tactics: short-term methods used to achieve an organization’s tactical objectives.
Mention 4 actions that pressure groups may take against a company.
Boycotting
Lobbying
Public relations
Direct action
Mention the 3 principles of the Circular Business Models
1.- Eliminate waste and pollution.
2.- Circulate products and materials.
3.- Regenerate nature.