Chap 3

Question 1

Planning

Answer 1

Is the process of formulating objectives and determining how to achieve them.

Question 2

Resource

Answer 2

Is any person or product that will help in the production of a good service.

Question 3

Human resources

Answer 3

Are the employees who provide their time, energy, skills and effort.

Question 4

Physical resources

Answer 4

Refer to equipment such as a computer, cash register, machinery, motor vehicle, office equipment and stock.

Question 5

Asset

Answer 5

Is any item of value owned by the business.

Question 6

Establishment costs

Answer 6

Include those costs involved in setting up the business.

Question 7

Operating costs

Answer 7

Include those costs involved in setting up the bussiness.

Question 8

Equity

Answer 8

Is the funds contributed by the owners of a business to commence and build the business.

Question 9

Debt

Answer 9

Is the funds provided by sources outside the business, which must be paid back over time, with interest.

Question 10

Working capital

Answer 10

Is the funds available for the short term financial commitments of a bussiness

Question 11

Bank overdraft

Answer 11

The bank allows a business or individual to overdraw their account up to an agreed limit for a specified time, to help overcome a temporary cash shortfall.

Question 12

Bank bills

Answer 12

Are short term securities issued by a bussiness and bought by a bank

Question 13

Business plan

Answer 13

Is a written statement of the business’s goals and objectives, and the steps to be taken to achieve them.

Question 14

Trade credit

Answer 14

Exists when a supplier provides products to a business with agreement to charge for the goods or services later.

Question 15

Mortgage

Answer 15

Is a loan secured by the property of the borrower (the business).

Question 16

Leasing

Answer 16

Is a way of financing the purchase of assets without a large initial capital outlay.

Question 17

Lessee

Answer 17

Is the person or business to whom a lease is granted.

Question 18

Lessor

Answer 18

Is the owner of an asset that is leased under an agreement to the lessee.

Question 19

Marketing

Answer 19

The process of planning and executing the conception, pricing, promotion and distributing of ideas, goods and services to create exchanges that satisfy individual and organisational objectives (American marketing association).

Question 20

Marketing objectives

Answer 20

Is a statement of what is to be achieved through the marketing activities.

Question 21

Target market

Answer 21

Is the group of customers to which the business intends to sell it’s products.

Question 22

Marketing statergies

Answer 22

Are actions undertaken to achieve the businesses marketing objectives.

Question 23

Marketing mix

Answer 23

Refers to the combination of the four elements of marketing, the four ps product, price, promotion and place that make up the marketing strategy.

Question 24

Marketing management

Answer 24

Is the process of monitoring and modifying the marketing plan.

Question 25

English self interest

Answer 25

Is the belief that a business ultimately helps itself when it helps to solve society's problem.

Question 26

Triple bottom line

Answer 26

Refers to the economic, environmental and social performances of a business.