Business functions

Question 1

Purpose of the eight business functions

Answer 1

Work together to achieve business goals
Each function carries out specific functions linked together to achieve business goals
Roles and tasks may change depending of growth of the business
Work together to ensure survival and sustainability of the business

Question 2

Importance of general management

Answer 2

Sets direction
Leads, organizes and controls other functions
3 different levels

Question 3

Level of management

Answer 3

Degree of power and authority mangers possess

Question 4

Top level management

Answer 4

Long term strategic plans
Leads, controls and manages tasks
Determine mission, objectives and strategies

Question 5

Middle level management

Answer 5

Medium tactical plans
Responsible for specific departments in the business
Implements visson and plans from top level

Question 6

Lower level management

Answer 6

Short term tactical decisions
Follow instructions from middle level
Productivity, support and motivation

Question 7

Role of top level management

Answer 7

Plans for the future
Manage change in the business
Plan businesses activities

Question 8

Roles of middle level management

Answer 8

Link between top and lower level management
Pass information from top to lower level management
Carry out strategic plans

Question 9

Role of lower level management

Answer 9

Make routine activities
Plan daily activities
Motivate and guide employees

Question 10

Management tasks

Answer 10

Planning
Leading
Organizing
Controlling
Risk management

Question 11

Planning

Answer 11

Sets goals develop strategies
Tactical plans implement choose plan
Consider different plans

Question 12

Organizing ting

Answer 12

Execute plan
Requires training to make sure job is done successfully
Ensures people know what is expected of them in terms of authority
Organize jobs

Question 13

Leading

Answer 13

Motivate and guide others to achieve goals
Inspire employees to do tasks
Guide employees in the right direction

Question 14

Controlling

Answer 14

Ensure business achieves goal
Ensure standards are met
Ensure activities are carried out as planned

Question 15

Risk management

Answer 15

Identify risk bearing activities in the business
businesses analyze risk and when it’s likely to happen
Evaluate potential risk impact on business
Handles risk using risk contingency plan

Question 16

Administration function meaning

Answer 16

Stores/records information using latest technology
General office work such as filling and storing information

Question 17

Activities of administration function

Answer 17

Collecting
Handling
Office work
Information technology

Question 18

Collecting information

Answer 18

Information is collected outside and inside the business
Info is correct, reliable and available

Question 19

Handling information

Answer 19

Handle information with care to avoid making wrong decisions with wrong information

Question 20

Types of information in admin

Answer 20

Accounting records
Cost accounting
Bugbet
Statistics

Question 21

Information technology

Answer 21

Electronic information is used to communicate and handle information

Question 22

Office practice

Answer 22

Admin handles thier staff
Dress code
Proper filling of documents

Question 23

Data

Answer 23

Raw/unprocessed facts
Can be processed manually or using technology

Question 24

Information

Answer 24

Processed/analyzed data
Stores information on electronic devices

Question 25

Financial function

Answer 25

Planning and managing funds

Question 26

Purpose of Financial function

Answer 26

Establish sources of capital Ensures business generates income to cover capital and rising capital

Question 27

Reasons why we need finance

Answer 27

Find best investors Source of funding

Question 28

Bank loan

Answer 28

Money borrowed from the bank that must be repaid with interest

Question 29

Bank overdraft

Answer 29

Spending money which isn't there that must be repaid with interest

Question 30

Asset based loans

Answer 30

Loan used to purchase assets until it's fully paid

Question 30

Grant

Answer 30

Money given to local business by government

Question 31

Receiveable loan

Answer 31

Loan given to business while waiting for payment of goods and services

Question 32

Angel funding

Answer 32

Money offered by wealthy entrepreneurs to other businesses for a share in the business High risk investment

Question 33

Venture capital

Answer 33

Money offered by individuals or organizations to start or expand a business for a position of the board of directors in the business

Question 34

Budgeting

Answer 34

Planning tool that is used to determine how money received will be spent

Question 35

Capital budget

Answer 35

Fixed capital drawn up every 5 to 10 years

Question 36

Cash budget

Answer 36

Working capital drawn up at the end of every financial year

Question 36

Investments

Answer 36

Invest money to generate profits

Question 37

Fixed capital

Answer 37

Long term assets business need to operate

Question 38

Working capital

Answer 38

Money used for day to day businesses operations

Question 39

Owned capital

Answer 39

Owner provides capital It is not a liability

Question 40

Borrowed capital

Answer 40

Money obtained from financial institutions It is a liability

Question 41

Purchasing function

Answer 41

Buying raw material and services for the business Look for suitable, new and better supplier Ensure goods are delivered at agreed price, right quanties and quality

Question 42

Purpose of the Purchasing function

Answer 42

Mange stock level Continuously look for the best suppliers Send damaged goods back Contact other departments to determine their needs Negotiate best possible payment