Business Basics
What is an organization that provides goods and/or services to satisfy customer needs and wants.
This is how the private sector differs from the public sector.
What is private sector is owned by individuals and the public sector is owned and controlled by the government.
This is the goal of social enterpreses.
What is businesses with social/environmental goals alongside profits.
This is the difference between a mission and a vision statement.
Mission = current purpose, Vision = long term aspiration
This is how customers and consumers differ from each other.
Customer purchase goods/services; consumers use the goods/services.
One advantage and one disadvantage of being a sole trader (sole proprietor).
Advantage: full control, keep all profits.
Disadvantage: unlimited liability, limited finance.
Definition of an NGO.
Non profit, independent from government, focused on social/humanitarian issues
This is why objectives are important to business organizations.
Objectives give direction, measure performance, and motivate employees and stakeholders.
The four functional areas of a business.
What is marketing, human resources, operations, and finance.
Advantage: shared skills/resources
Disadvantage: shared profits, potential conflicts
Definition of a cooperative.
What is owned and operated by members for mutual benefit.
Define CSR.
CSR = corporate responsibility to society beyond profit (people, planet, profit)
The four business sections of the economy.
What is primary, secondary, tertiary, and quaternary.
This is the difference between a privately held company and a publicly held company.
Publicly held: shares traded on the stock exchange
Give one advantage and one disadvantage of a cooperative.
Adv: democratic, shared profits.
Disadv: slower decision making, limited capital
This is how growth objectives differ from profit objectives.
Growth = expansion (sales, market share)
Profit = financial surplus (revenue - costs)
This the the chain of production.
This is the benefit of being a limited liability company.
What is limited liability (protection from personal assets) and flexible structure.
Compare a cooperative to an NGO.
Both serve community; NGO = nonprofit and advocacy, Coop = business with member owernship
These are the four most common business objectives.
What is growth, profit, protective shareholder value, ethics.