Business Chapter 3

Question 1

External audit

Answer 1

An audit of the external environment in which a business finds itself, such as a market within each it operates or government restrictions (I.e. limits) on its operations

Question 2

Flotation

Answer 2

The sale of company shares to the public for the first time. The shares are then traded on the stock market

Question 3

Internal audit

Answer 3

an analysis of a business itself and how it operates

Question 4

Strategic planning

Answer 4

A process which involves making the vision for the future of a business easier to understand. It also involves identifying the goals that need to be achieved in order to realise that vision

Question 5

SWOT analysis

Answer 5

An analysis of the internal strengths and weaknesses of the business and the opportunities and threats presented by its external environment

Question 6

Trade association

Answer 6

An organisation whose members are all involved in the same industry or trade. The organisation pursues (follows) the interests of these businesses