ECONOMIC ACTIVITY
Three main classifications of economic activities
What is Primary, Secondary and Tertiary Economic Activities?
A business owned by one person.
What/Who is sole proprietorship?
Perform the role of a compass or guideline in keeping the business on track.
What business objectives?
The concept that accepts that businesses should consider the interests of society in their activities and decisions, beyond the legal obligations that they have.
What is Social Corporate Responsibility?
Strategic, Tactical and Operational.
What are the levels of Decision Making?
Activity which takes the natural resources from the earth.
What is Primary Production?
A business owned by two or more persons with the common view of making a profit.
What is a Partnership?
Captures attitudes and expectations of employees,
Focus of activities for people to identify with
Overtime, provides framework for strategies in the
business
What is the Mission Statement?
positive business reputation
increased sales and customer loyalty
better financial performance
What are benefits of Corporate Social Responsibility?
Cost effectiveness, accuracy, relevance, timeliness.
What are the elements of Decision Making?
Agriculture, mining, fishing and forestry.
What are examples of Primary Production?
Nationalized industries, public corporation, statutory boards, local authorities and government departments.
What are the branches of the Public Sector?
Objectives act as a guide for employees and the employer to follow in order to propel the business forward and thus attain its goal
What is an importance of objectives?
The morals or set of standards that are used to guide a business on how it should conduct its affairs.
What is Business Ethics?
The means by which individuals, governments, companies, and countries interact with and affect one another, with the goal of helping to build strong alliances that mutually benefit one another around the world.
What is Globalization?
Manufacturing, processing and construction which transform raw materials into finished or semi-finished goods.
What is Secondary Production?
This means that when one partner leaves a partnership the entire partnership comes to a legal end and may be restarted.
What is lack of continuity?
Objectives are clearly defined, leaving no room for ambiguity.
What are specific objectives?
Customer, shareholders, government, employees.
Who are stakeholders in a business?
Increased competition from abroad as a result of trade liberalization creates an incentive for greater efficiency and cheaper production by domestic firms.
What is an Impact of Trade Liberalization?
The more developed countries tend to be very sophisticated in their approach to offering services.
What is Tertiary Production?
What is a characteristic of Tertiary Production?
A corporation, also known as a limited company, is a
legal entity that is separate and distinct from its members (shareholders).
What is corporation or limited liability company?
Gives the company direction. It is the future of the business, which then provides the purpose.
What is a Vision Statement?
The art of directing and controlling the organization by balancing the needs of the various stakeholders.
What is good corporate governance?
Sales - Cost of Goods Sold
What is Gross Profit?