Nature of Business
Business Management
Business Planning
Equations
Concepts and Terminology
100

Define business

A coordinated effort by individuals to combine resources in order to produce goods and services that satisfy consumer needs and wants for the ultimate goal of making a profit. 

100

Definition of Management: 

the process of coordinating a businesses' resources to achieve their goals. 

100

what is a Small to Medium enterprise (SME)

a firm with less than 200 full-time employees and/or less than $10 million in total

100

Assets = ? 

Liabilities + Owners Equity 

100

SWOT analysis? 

Analyzing a businesses Strengths, weaknesses, Opportunities, Threats

200

List the types of classification of businesses there are. 

- Classification by Size

- Classification by Geographical spread

- classification by Industry

- Classification by Legal structure

200

what are the 9 skills of management? 

Interpersonal skills, communication skills, strategic thinking skills, Vision skills, problem-solving skills, decision-making skills, flexibility, adapting to change, reconciling the conflicting interests of stakeholders. 

200

What role do SME's play for a country

- employment 

- produce goods and services 

- contribute to the economy (account for 20% of money spent

200

COGS = ? 

OS + P - CS

200

JIT ? 

Just in Time (quality management)

300

What are the main factors influencing choice of legal structure of a business. 

- Size

- ownership

- finance 

300

What are the approaches to management? & provide  2-3 words to describe the structure of that approach. 

Classical / Scientific Approach (planning, organizing, controlling) 

Behavioral approach (leading, motivating, communicating) 

Contingency Approach (adapting to changing circumstances) 

300

List at least 4 reasons for why a business might success or fail (4 each) 

- access to information, reputation, focus on market niche, flexibility, entrepreneurial ability. 

- poor finance management & performance, unrealistic expectations, ineffective leadership, inadequate market research, wrong strategies, insufficient capital. 


300

Owners Equity? 

A - L = OE

300

4 P's of marketing 

product, price, place, promotion

400

What are the external and internal influences on a business? 

External (economic, financial, geographic, social, legal, political, institutional, technological, competitive situation, markets)

Internal (Products, location, resources, management, business culture)

400

what are the four key business functions and what do they involve? Choose your words carefully! 

Operations, Marketing, Finance, HR

400

What are the sources of finance? (debt and equity)

Debt: overdraft, commercial bills, factoring, mortgage, leasing, debentures, unsecured notes

Equity: capital, retained profits, family friends, Private investors, shares. 

400

Net Profit = ? 

NP = Gross profit - Total Expenses

400

7 P's or marketing 

product, price, place, promotion, 

people, process, physical evidence

500

List the four stages of the business life cycle AND two characteristics and one challenge

Establishment, Growth, Maturity, Post-maturity 

E - cash flow shortages, marketing strategies, survival

G - experience, growth and demand strain, labor shortages

M - survival, cost control, staff motivation, R&D

P- difficulty obtaining money, suppliers asking for cash payments due to high risk, profit decline, low staff morale


500

How do you manage change effectively? 

- identify a need for change

- Business Information systems

- Setting achievable goals

- Resistance to change

500

what are the downsides of purchasing an already established business? 

(at least 4 reasons)

- Inherit immediate problems

- may loose business reputation due to new ownership

- employees may be resistant to change 

- businesses may be overpriced

- difficulty of assessing goodwill 

500

Break-Even Point

Total fixed costs / Unit price - variable costs per unit

500

PIECEWIQ (8 roles)

profit, income, employment, choice, entrepreneurship, wealth, innovation, Quality of life