Business Definitions

Question 1

Large Scale Organisation (LSO) definition:

Answer 1

A large-scale organisation employs 200 or more people, earns revenue in the millions, or has assets of more than $200 million.

Question 2

A multinational corporation definition:

Answer 2

A multinational corporation is owned and based in one country and operates in many countries throughout the world.

Question 3

Corporation definition:

Answer 3

A corporation is owned by shareholders and aims to make a profit.

Question 4

Shareholder definition:

Answer 4

A shareholder is any person who owns shares in a company.

Question 5

Government Business Enterprise definition:

Answer 5

A government business enterprise is government owned and operated.

Question 6

Objective definition:

Answer 6

An objective is a desired goal, outcome or specific result that an organisation intends to achieve.

Question 7

Vision Statement definition:

Answer 7

The vision statement states what the organisation aspires to become.

Question 8

Mission statement definitions:

Answer 8

The mission statement expresses why an organisation exists, its purpose and how it will operate.

Question 9

Strategies definition:

Answer 9

Strategies are the actions that an organisation takes to achieve specific objectives.

Question 10

Balance of payments definition:

Answer 10

The balance of payments is a record of a country’s trade and financial transactions with the rest of the world.

Question 11

Research and development definition:

Answer 11

Research and development refers to activities undertaken to improve existing products and create new products.

Question 12

Invention definition:

Answer 12

An invention is the development of something new.

Question 13

Innovation definition:

Answer 13

Innovation occurs when something already established is improved upon.

Question 14

Infrastructure definition:

Answer 14

Infrastructure refers to highways, railways, airports, communications systems, education and health facilities, water, gas and electricity supplies.

Question 15

Downsizing definition:

Answer 15

Downsizing involves workplace staff reductions, with the elimination of jobs and positions.

Question 16

Outsourcing definition:

Answer 16

Outsourcing is the contracting of some organisational operations to outside suppliers.

Question 17

Internal Environment definition:

Answer 17

The internal environment includes all those things over which the organisation has some degree of control.

Question 18

External environment definition:

Answer 18

The external environment includes those things over which the business has little control. It may be divided into an operating environment and a macro environment.

Question 19

Operating environment definition:

Answer 19

An organisation’s operating environment refers to the outside factors with which the organisation directly interacts in the course of conducting its business.

Question 20

Customers definition:

Answer 20

Customers are the buyers or users of the products of a large-scale organisation.

Question 21

Suppliers definition:

Answer 21

An organisation’s suppliers are those organisations and individuals that supply resources to the organisation, allowing it to conduct its operations.

Question 22

Competitors definition:

Answer 22

Competitors refers to organisations that offer rival products or services.

Question 23

Lobby groups definition:

Answer 23

Lobby groups are groups of people who attempt to directly influence or persuade an organisation to adopt particular policies.

Question 24

Macro environment definition:

Answer 24

The macro environment is made
up of the broad factors in the economy and society within which the organisation operates.

Question 25

Globalisation definition:

Answer 25

Globalisation is the effect of hi-tech communications, lower transport costs and unrestricted trade and financial flows turning the whole world into a single market, producing a more integrated global economic system.

Question 26

Effectiveness definition:

Answer 26

Effectiveness is the degree to which an organisation has achieved its stated objectives.

Question 27

Efficiency definition:

Answer 27

Efficiency refers to how well an organisation uses resources to achieve objectives.

Question 28

Key performance indicators definition:

Answer 28

Performance indicators are specific criteria used to measure the efficiency and effectiveness of the organisation’s performance.

Question 29

Profit definition:

Answer 29

Profit is what remains when expenses are deducted from the revenue earned.

Question 30

Number of sales definition:

Answer 30

Number of sales measures the number of products sold.

Question 31

Percentage of market share definition:

Answer 31

Percentage of market share is the proportion of the total market that a business has, expressed as a percentage.

Question 32

Rate of productivity growth definition:

Answer 32

The rate of productivity growth measures the change in productivity in one year compared to the previous year.

Question 33

Customer survey definition:

Answer 33

A customer survey measures how satisfied customers are with the organisation’s performance.

Question 34

Staff survey:

Answer 34

A staff survey measures how satisfied staff are within the organisation.

Question 35

Staff turnover definition:

Answer 35

Staff turnover measures the number of staff who are leaving the organisation.

Question 36

Customer complaints definition:

Answer 36

Customer complaints indicate whether or not customers are satisfied with the performance of the organisation.

Question 37

Level of wastage definition:

Answer 37

The level of wastage measures the amount of waste created by the production process.

Question 38

Number of workplace accidents definition:

Answer 38

The number of workplace accidents indicates how safe the workplace is for employees.

Question 39

Benchmarking definition:

Answer 39

Benchmarking occurs when an organisation measures its performance against that of other leading organisations known for their excellence.

Question 40

Stakeholders definition:

Answer 40

Stakeholders are groups and individuals who interact with the organisation and have an interest in its activities.

Question 41

Social responsibility definition:

Answer 41

Social responsibility is the obligations a business has over and above its legal responsibilities to the wellbeing of employees and customers, shareholders and the community as well as the environment.

Question 42

Ethical management definition:

Answer 42

Ethical management refers to the process of abiding by moral standards and doing the ‘right’ thing in the interests of all stakeholders.

Question 43

Organisation definition:

Answer 43

An organisation is two or more people working together to achieve an objective.

Question 44

Board of directors definition:

Answer 44

A group of individuals that are elected as representatives of the stockholders to establish corporate management related policies and to make decisions on major company issues.

Question 45

Managing Director definition:

Answer 45

A managing director is the position of the most senior corporate officer, executive, or administrator in charge of managing an organization.

Question 46

Government department definition:

Answer 46

A sector of a national or state government that deals with a particular area of interest.

Question 47

Exports definition:

Answer 47

A function of international trade whereby goods produced in one country are shipped to another country for future sale or trade.

Question 48

Imports definition:

Answer 48

A good or service brought into one country from another.

Question 49

Unions definition:

Answer 49

An organization intended to represent the collective interests of workers in negotiations with employers over wages, hours and working conditions.

Question 50

Human Resources definition:

Answer 50

Human resources are the people who work for the organization.

Question 51

Marketing definition:

Answer 51

The activities of a company associated with buying and selling a product or service.

Question 52

Finance definition:

Answer 52

The act of providing funds for business activities, making purchases or investing.

Question 53

Operations definition:

Answer 53

Jobs or tasks of one or more elements.

Question 54

Profitability definition:

Answer 54

Profitability is the ability of a business to earn a profit.

Question 55

Shareholders definition:

Answer 55

A shareholder is an individual or entity that owns the shares of a corporation.

Question 56

Management definition:

Answer 56

The organisation and coordination of the activities of a business in order to achieve defined objectives.

Question 57

Employees definition:

Answer 57

An individual who works part-time or full time under a contract of employment, whether oral or written.