Unit 1

Question 1

Capital

Answer 1

Non-natural resources used in the production process.

ie tools, machinery, motor vehicles, physical premises, and infrastructure.

Question 2

Adding value describes?

Answer 2

the process of creating a product that is worth more than the total costs of the inputs used.

Question 3

Distinction between private and public sector

Answer 3

Public is controlled by government, with aim of providing essentials to the general public

Private is privately owned with any purpose.

Question 4

Unlimited liability

Answer 4

An owner is personally liable for any business debts.

Question 5

Limited liability

Answer 5

Shareholders are not liable for more than the original amount of money invested.

Question 6

memorandum of association

Answer 6

A legal document that outlining fundamental conditions and objectives

Question 7

deed of partnership

Answer 7

legal agreement for rules of how a partnership will operate

Question 8

incorporated business

Answer 8

is separate from owner

Question 9

What are KPI’s

Answer 9

KPIs, or key performance indicators, are quantifiable measures that track the effectiveness of business operations

Question 10

What are some marketing KPI’s

Answer 10

Market share, customer acquisition cost and brand awareness

Question 11

Operations KPI’s

Answer 11

production efficiency, quality metrics and inventory turnover

Question 12

Finance KPIs

Answer 12

return on investment, profit margins, cash flow metrics

Question 13

HR KPIs

Answer 13

Employee turnover rate, training completion rate and employee satisfaction scores

Question 14

Factors of production

Answer 14

Land, labor, capital, entreprenership

Question 15

What are business operations?

Answer 15

The daily activities a company performs to function, generate revenue, and achieve its goals,

Question 16

What is value added?

Answer 16

The numerical difference between the cost of factor inputs in the production process and the price that the final output is sold for.

Question 17

Companies or corporations

Answer 17

This refers to any business organization that is owned by its shareholders, who have limited liability. They comprise of privately held companies and publicly held companies.

Question 18

causes of structural changes toward tertiary business

Answer 18

higher household income, more urbanization, more leisure time, focuses on customer relations, reliance on support services

Question 19

unincorporated entities

Answer 19

-they are not a separate entity from the owners - sole traders and partnerships

-less able to borrow money to start or expand

-banks view them as high risk or hobby investments

-banks will look at personal assets before loaning to them

Question 20

public private partnerships (PPP)

Answer 20

collaboration between public bodies and private companies. a government service or private business venture, which is funded and operated through a partnership of government and one or more private sector companies.

government can help private company provide a service for cheapie schools, hospitals

Question 21

The three p’s for sustainability

Answer 21

people, planet, prosperity

Question 22

social enterprise

Answer 22

-a business with mainly social objectives that reinvests most of its profits into benefiting society rather than maximising returns to owners.

• combo between business and charity
• appeals to people w strong moral compasses

Question 23

what is the triple bottom line for social enterprises

Answer 23

the bottom line - profit

the triple bottom line - the other things; economic, social and environmental, objectives of a social enterprise

-not all social enterprises do all three

-in many cases doing this can create long term sustainability and lead to success.

Question 24

What are NGO’s plus examples

Answer 24

non governmental organisations

private schools
pressure groups
ie avocats sans frontiers, foodbank

Question 25

types of co-ops

Answer 25

retail/consumer collecting business to benefit customer agricultural farms n stuff banding together - think bulk buying hay worker co-ops owned and operated by workers- think higher wages for all including low level jobs because they are also the owners, ie profit is split evenly between all who work there because they are owners

Question 26

pros of co-ops

Answer 26

pros democratic decision making, allows people to buy stuff they couldn't otherwise afford, all votes are even strength, management has a salary cap connected to lowest paid worker

Question 27

Cons of co-ops

Answer 27

harder to make decisions higher ups have limit on progression harder to raise money long time to make decisions

Question 28

Vision Statement

Answer 28

"Some day" - What the organization aspires to become in the distant future.

Question 29

Mission Statement

Answer 29

"Every day" - The purpose of the business and what it does currently.

Question 30

Business Objectives

Answer 30

Clearly defined, measurable targets used to achieve overall goals (e.g., SMART goals).

Question 31

cooperation

Answer 31

is a business or organization owned and controlled by the people who use its services, with decisions made democratically to meet the common needs of its members

Question 32

SMART

Answer 32

Specific, Measurable, Agreed, Relevant, Time-bound.

Question 33

Strategic Objectives

Answer 33

Long-term targets the whole organization strives to achieve, requiring greater investment in human and financial resources.

Question 34

Tactical Objectives

Answer 34

Short-term, specific targets with definitive timelines; easier to change or reverse than strategic objectives.

Question 35

Strategies

Answer 35

The actions taken to achieve long-term (strategic) objectives.

Question 36

Tactics

Answer 36

The actions taken to achieve short-term (tactical) objectives.

Question 37

CSR (Corporate Social Responsibility)

Answer 37

An organization's use of ethical objectives to commit to behaving in a socially responsible way toward all stakeholders.

Question 38

Ethical Code of Practice

Answer 38

The formal, documented philosophies and values of a business, informing stakeholders of acceptable conduct.

Question 39

Ethical Objectives

Answer 39

Organizational goals based on moral guidelines that determine business decision-making.

Question 40

SWOT uses

Answer 40

Evaluating business opportunities Assessing opportunities Strategic planning Competitor analysis Reviewing strategy Risk assessment

Question 41

Difference between a shareholder and a stakeholder

Answer 41

Shareholder is anyone with shares in the company. A stakeholder is anyone who cares about the company regardless of shares, including: customers, employees, investors, suppliers, community and gov

Question 42

importance of objectives

Answer 42

to control - set boundaries to motivate - set managers and employees to have the same goals to direct - provides direction

Question 43

objectives commonly are for

Answer 43

survival profit maximization market share market growth corporate image quality improvement satisfaction (customers or stakeholders)

Question 44

purpose of Corporate Social Responsibility

Answer 44

to improve brand image

Question 45

What is social auditing, why and example

Answer 45

The main reason for social auditing is to ensure corporate social responsibility. Ex auditing business policy on using renewable and sustainable resources.

Question 46

advantages of business ethics

Answer 46

Improved corporate image Customer loyalty Improved staff motivation and moral

Question 47

Disadvantages of ethics

Answer 47

Compliance costs Lower profits Stakeholder conflict

Question 48

Internal growth

Answer 48

Internal growth occurs when a business uses its own resources to increase scale of operations and sales revenues. Financed through profits of business

Question 49

External growth

Answer 49

External growth refers to growth through mergers (two businesses joining) and acquisitions (one business acquires another).

Question 50

External growth limitations

Answer 50

High associated costs Potential for cultural clashes Loss of control Diseconomies of scale Overtrading - growing beyond its means Need to restructure Dilution of control and ownership

Question 51

Internal growth benefits

Answer 51

Better control and coordination Relatively inexpensive Maintains corporate culture

Question 52

Types of economies of scale

Answer 52

Technical - machinery Financial economies Marketing economies Purchasing economies Managerial economies

Question 53

two types of temporary external growth

Answer 53

Strategic Alliance - Two groups work together for a set amount of time to achieve a set number of goals Joint venture- A separate entity or business division is created to complete this. May be early sign of merger?

Question 54

types of long term external growth

Answer 54

Backward vertical bakery purchasing a wheat farm Conglomerate diversification Alphabet owning Google, Youtube, Fitbit Horizontal integration Forward vertical integration Wineries cellar door

Question 55

Limitations of Multinational companies?

Answer 55

Cultural differences when establishing companies in new locations *Coordination of global production across time zones and language *Legal barriers - who governs MNCs? *Investment into host countries can be inequitable and temporary (benefits can be superficial?)

Question 56

Impact of Multinational companies on host countries?

Answer 56

*Possible exploitation of labour - taking advantage of local labour costs which may be low or unregulated *Explotation of labor, environment *Exploitation of environmental regulations that may allow more pollution *Local business may be unable to compete with MNCs *Loss of local culture *Profit repatriation - how much of MNC wealth remains in host countries? *Depletion of natural resources in host nations

Question 57

Benefits of Multinational companies?

Answer 57

*Proximity to markets, resulting in reduced costs and improved information *Lower costs of production *Can bypass trade restrictions *Access local markets and resources

Question 58

Stakeholder mapping

Answer 58

COLUMNS: High Level of Stakeholder Interest & Low Level of Stakeholder Interest ROWS: High Level of Stakeholder Power & Low Level of Stakeholder Power

Question 59

What's the deal with directors

Answer 59

Directors are the senior executives who are legally responsible for the overall running of a company on behalf of their shareholders (the legal co-owners of the company).

Question 60

What is GDP

Answer 60

Gross Domestic Product, is the total monetary value of all final goods and services produced within a country's borders during a specific period, typically a quarter or a year

Question 61

Economies of scale

Answer 61

These are cost-saving benefits enjoyed by a business as it increases the size of its operations, i.e., lower average costs (the cost per unit).

Question 62

Protectionist policies

Answer 62

These are measures imposed by a country to reduce the competitiveness of imports, such as tariffs (import taxes), quotas (quantitative limits), and restrictive trade practices (such as predatory pricing by temporarily lowering prices below cost to drive competitors out of the market).

Question 63

Synergy

Answer 63

When the combined effect of two or more parts (like departments, teams, or companies) is greater than the sum of their individual efforts. "\(2+2=5\)"