Business Chapter 1

Question 1

Break even

Answer 1

When a business generates just enough revenue to cover its total costs

Question 2

Corporate aim

Answer 2

The specific goal a corporation hopes to achieve. For example, to become market leader

Question 3

Corporate objectives

Answer 3

The objectives of a medium to large-sized business as a whole

Question 4

Departmental and functional objectives

Answer 4

The objectives of a department within a business

Question 5

Hierarchy

Answer 5

The order or levels of responsibility in an organisation, from the lowest to the highest

Question 6

Mission statement

Answer 6

A brief statement written by the business, describing its purpose and objectives, designed to cover its present operations

Question 7

Objective ( or goal)

Answer 7

A target of, or outcome for, a business that allows it to achieve its aims

Question 8

Shareholder

Answer 8

Somebody who owns shares (i.e. One of the parts a company is divided into) in a company or business

Question 9

SMART

Answer 9

Acronym for the attributes of a good objective: specific, measurable,agreed,realistic and time specific

Question 10

Stakeholder

Answer 10

Somebody who has invested money in a business or has an important connection with it. They are therefore affected by the success or failure of the business

Question 11

Vision

Answer 11

A view of what the corporation wants to be like in the future