1.1 Intro to Business + Toolkit
Which of the following is an example of a primary sector business?
Mining operation
Which of the following is part of the public sector?
A) A private law firm
B) A family-owned grocery store
C) A school
D) A retail clothing company
A school
True or False:
The statement which sets out an organization’s long-term aspirations is known as the vision statement.
True
Which of the following is an internal stakeholder for a company?
The main difference between an acquisition and takeover is:
Takeovers are typically hostile in nature - a company purchases a controlling stake in another company without permission and agreement of the company or it's Board of Directors
while acquisitions are friendly in nature - always getting permission or setting up an agreement with the company or its BOD
Which of the following is not considered a factor of production?
Marketing
When a privately owned business decides to issues shares of stock on a public stock exchange for the first time this is known as:
IPO
What does the R in the SMART criteria for setting business objectives stand for?
Realistic and Relevant
A stakeholder analysis is used to:
A. Determine a firm's financial performance
B. Identify key stakeholders and their level of power and interest
C. Develop a company's marketing strategy
D. Predict future market trends
B. Identify key stakeholders and their level of power and interest
Name one reason a business would strive to become a Multinational business:
Increased customer base
Cheaper production costs
Economies of Scale
Brand development and brand value
Spread risks
In SWOT analysis, strengths and weaknesses are considered:
A) Internal factors within the business
B) External factors outside the business
C) Uncontrollable influences
D) Short-term government policies
Internal factors
Which of the following is typically considered a disadvantage of a privately held company?
a. Simplified management structure
b. Greater tax efficiency
c. Limited access to external capital
d. Lack of perpetual business succession
Limited access to external capital
Which of the following is an example of a strategic objective for a clothing retailer?
A. To increase employee training hours by 10% this quarter.
B. To launch a new line of sustainable activewear within the next three years.
C. To reduce delivery times by 24 hours in the upcoming month.
D. To cut marketing costs by 5% in the next fiscal year.
B. To launch a new line of sustainable activewear within the next three years.
A situation where directors prioritize large bonuses for themselves while shareholders want higher dividends is an example of
a. Stakeholder conflict
b. Crisis management
c. Corruption
d. Contingency planning
Stakeholder conflict
This external growth strategy combines the contributions and responsibilities of two or more different organizations in a shared project by creating a separate legal enterprise
Joint Venture
Rising interest rates that increase borrowing costs would be classified as:
A) Strength
B) Weakness
C) Opportunity
D) Threat
Threat
This person is an inactive owner who does not get involved in the daily running and management of the organization
Silent partners or sleeping partners
Corporate social responsibility (CSR) refers to a business's:
Financial economies of scale refer to:
a) Reduced per unit costs of production
b) Lower interest rates on loans and access to capital markets
c) More effective marketing and advertising campaigns
d) Improved purchasing power with suppliers
b) Lower interest rates on loans and access to capital markets
The purchaser of a franchise (a franchisee) must also pay the franchisee a commission payment based on sales revenue to the franchisor. This is called:
A Royalty Payment
Diversification as a strategy in the Ansoff Matrix involves:
a. Increasing sales of existing products in existing markets
b. Developing new products for existing markets
c. Selling existing products to new markets
d. Selling new products to new markets
Selling new products to new markets
Name 2 disadvantages of limited liability companies
Communication problems
Added complexities
Compliance costs
Disclosure information
Bureaucracy
Loss of control
A business adopts a new ethical policy to source all its raw materials from local, certified organic farms. Which of the following is a potential limitation of this ethical behavior?
A. Improved brand image and reputation among consumers.
B. Better relations with local community suppliers.
C. Short-run costs could increase due to higher supplier prices.
D. Reduced risk of pressure group action against the business.
C. Short-run costs could increase due to higher supplier prices.
This term is a considered a benefit of many external growth methods. When two or more businesses are integrated and have access to each other's resources, such as distribution channels, technologies, and management expertise.
Synergy
What external growth method takes place when two or more firms agree to create a new company with its own legal identity?