Wk 2 - the business environment Flashcards
Name the three types of businesses
Sole proprietorship
partnership
corporation.
Define a sole proprietorship
Owner = 1 person
responsible for all profits and losses.
Define a Partnership
Owner = more than 1 person
They are responsible for all profits and losses.
Define a Corporation
artificially created legal entity and exists separate from those who created and run the business.
Name the 8 common departments within organisations.
AFHSMOTM
Accounting Finance HR Sales Marketing Ops Management Transport Management Info Systems.
What’s the role of Accounting
Provide quantitative information about the finances of the business
What’s the role of Finance
Deals with strategic financial issues while observing applicable laws and social responsibilities.
What’s the role of HR
Deals with policies, plans, and procedures for the effective management of employees (human resources).
What’s the role of Sales
Sales is the function of selling a good or service and focuses on increasing customer sales/ company revenues.
What’s the role of Marketing
Identify and satisfy customer needs.
What’s the role of Operations managent (also production management)
methods, tasks, and techniques organisations use to produce goods and services.
What’s the role of transport (logistics)
Manages the storage and transport of raw materials / finished products.
What’s the role of management info systems
Manage IT hardware, software, and applications that support the goals of an organisation.
Define a transaction
An exchange or transfer of goods, services, funds involving 2 or more people.
Define a source document
Evidences the transaction and is the first step in accounting.
