1.1 Introduction to business management

Question 1

A business

Answer 1

Any organization set up to provide goods and/or services.

Question 2

Factors of production

Answer 2

To produce goods and services, a business needs to cimbine human, physical, financial, and entrepreneurial resources.

Question 3

Value added

Answer 3

The process of creating a product that is worth more than the cost of the inputs used to produce it.

Question 4

Consumers

Answer 4

The people who use a good or service.

Question 5

Human resources

Answer 5

Human resource management oversees staffing(personnel) within an organization.

Question 6

Finance and accounts

Answer 6

The function of the finance department is to manage the organization’s money.

Question 7

Marketing

Answer 7

The marketing department is responsible for identifying the needs and wants of its customers, and ensuring the organization’s goods and services meet these demands in a profitable way.

Question 8

Operations

Answer 8

Operations, or productio, covers the process of making products from the available resources of the business.

Question 9

The primary sector

Answer 9

The first stage of production.

Question 10

The secondary sector

Answer 10

To businesses engaged in manufacturing and construction to create finished, unsable products.

Question 11

The tertiary sector

Answer 11

To businesses that focus on providing a service to consumers and other businesses.

Question 12

The quaternary sector

Answer 12

To businesses engaged in the creation or sharing of knowledge or imformation.

Question 13

Entrepreneurship

Answer 13

The term for the activity undertaken by individuals who take calculated risks and initiative in the start-up og a new business or commercial project.

Question 14

An entrepreneur

Answer 14

Someone who is willing to take financial risks investing in a business idea.

Question 15

An intrapreneur

Answer 15

Someone who develops new products or services within an organization, usually a large one, for the benefit of the firm and its employers.

Question 16

A business plan

Answer 16

A formal document that details how an orgazination intends to meet its objectives.

Question 17

The private sector

Answer 17

The commercial sector of the economy, mainly owned and run by private individuals and organizations that typically strive for a profit.

Question 18

Public sector

Answer 18

Controlled by regional and/or national governments.

Question 19

Sole tranders

Answer 19

A commercial business owned by a single person

Question 20

Unlimited liability

Answer 20

Means that the owner of a business is presonally liable for all of its debts.

Question 21

Partnerships

Answer 21

A commercial business organization owned by two or more people.

Question 22

Ordinary partnership

Answer 22

There are usually between 2 to 20 owners.

Question 23

Deed of partnership

Answer 23

To prevent potential misunderstandings and conflict, most pratnerships draw up a legal contract between the partners.

Question 24

Companies/corporations

Answer 24

Commercial businesses with limited liability and owned by their shareholders.

Question 25

A stock exchange

Answer 25

The marketplace where people and business buy and sell second-hand company stocks and shares, e.g. the New York Stock Exchange.

Question 26

Cooperatives

Answer 26

Strive to provide a service and to create value for their members, rather than a financial return for their member-owners.

Question 27

Microfinance providers

Answer 27

Microfinence gives these people, women in particular, the opportunity to become self-sufficient by providing small loans, savings and other basic financial services.

Question 28

Public-private partnerships

Answer 28

Organizations jointly established by the government and at least one private sector organization.

Question 29

Social enterprises

Answer 29

Organizations that generate revenue but act with community objectives.

Question 30

Non- governmental organizations

Answer 30

A type of non-profit social enterprise that is neither part of s government nor a traditional for-profit business but run by voluntary groups.

Question 31

Charities

Answer 31

Not-for-profit organizations that operate in an altruistic way with the objectives of promoting a worthwhile cause.

Question 32

Aims

Answer 32

Long-term goals of an organization, formulated by the senior management team.

Question 33

Objectives

Answer 33

The targets an organization is trying to achieve.

Question 34

Strategies

Answer 34

How an organization intends to achieve its aims and strategic objectives.

Question 35

Tactics

Answer 35

Short-term, smaller-scale or routine decisions about how an organization intends to achieve its aims and objectives on a day-to-day basis.

Question 36

Internal factors

Answer 36

Those within the control of an organization.

Question 37

External factors

Answer 37

Those beyond the control of an organization.

Question 38

Corponate social responsibility

Answer 38

To refers to an organization's duties to its internal and extrenal stakeholders by behaving in a way that positively impacts society as a whole.

Question 39

A SWOT analysis

Answer 39

Management tool to assess where a business is at the present time and how it is affected by the external business environment.

Question 40

The Ansoff Matrix

Answer 40

Management growth tool, first published in an article titled 'Strategies for Diversification'.

Question 41

Market penetration

Answer 41

Market penetration focuses on existing markets and existing products.

Question 42

Market development

Answer 42

The growth strategy where a business sells its existing products into new markets.

Question 43

Product development

Answer 43

A growth strategy where a business introduces new products into existing markets.

Question 44

Diversification

Answer 44

Involves businesses marketing completely new products new products to new customers.

Question 45

Stakeholders

Answer 45

Individuals, organizations groups with a direct interest in the operations and perfomance of a particular business or organization.

Question 46

Internal stakeholders

Answer 46

Members of the organization, such as employees, managers, directors and shareholders.

Question 47

Employees

Answer 47

The people who work within an organization.

Question 48

Managers and directors

Answer 48

People hired to be in change of certain depaartments or operations within an organization.

Question 49

Shareholders

Answer 49

Individuals or organizations that buy shares in a company, thereby owning a part of the business.

Question 50

Customers

Answer 50

The clients of a business.

Question 51

Suppliers

Answer 51

Provide the goods and support services for other businesses.

Question 52

Competitors

Answer 52

The rivals of a particular business.

Question 53

The local community

Answer 53

Interested in businesses acting in a socially responsible way.

Question 54

Pressure groups

Answer 54

Organizations or groups of people who have a common interest.

Question 55

Financiers

Answer 55

Banks and other creditors that provide sources of finance for businesses.

Question 56

The government

Answer 56

A key external stakeholder of all the businesses.

Question 57

Stakeholders

Answer 57

The stakeholder groups with a high degree of power and insteret.

Question 58

Stakeholder mapping

Answer 58

A management tool used to determine the key stakeholders of an organization based on the varying degrees of power and interest of the various stakerholder groups.

Question 59

Conciliation

Answer 59

To align the conflicting interests of different stakeholder groups.

Question 60

Arbitrator

Answer 60

To assess the conflicting interests, with the stakeholder groups agreeing to accept the judgment of independer arbitrator.

Question 61

Financial rewards

Answer 61

To employee productivity gains.