CHAPTER 1 & 2

Question 0

Shareholders

Answer 0

Someone who owns shares in a company

Question 1

Organisation

Answer 1

Two or more people working together to achieve an objective

Question 2

LSO

Answer 2

An organisation that employs 200 or more people and/or earns revenue in the millions

Question 3

Multinational corporation

Answer 3

A corporation owned and based in one country and operates in many others

Question 4

Government business enterprise

Answer 4

A government owned and operated business

Question 5

Objective

Answer 5

A desired goal, outcome or specific result that an organisation intends to achieve

Question 6

Vision statement

Answer 6

States what the organisation aspires to become

Question 7

Mission statement

Answer 7

Expresses why an organisation exists, it’s purpose and how it will operate

Question 8

Strategies

Answer 8

The actions that an organisation takes to achieve specific objectives

Question 9

Research and development

Answer 9

Activities undertaken to improve existing products and create new products

Question 10

Invention

Answer 10

The development of something new

Question 11

Innovation

Answer 11

When something already established is improved

Question 12

Infrastructure

Answer 12

Refers to the highways, railways, airports and other supply bases in a society

Question 13

Downsizing

Answer 13

When a workplace reduces staff with the elimination of jobs and positions

Question 14

Outsourcing

Answer 14

The contracting of some organisational operations to outside supplies

Question 15

Internal environment

Answer 15

All those things over which the organisation has some degree of control over

Question 16

External environment

Answer 16

All those things over which the organisation has little control over, divided into an operating environment and a macro environment

Question 17

Operating environment

Answer 17

Refers to the outside factors with which the organisation directly interacts with while conducting it’s business

Question 18

Customers

Answer 18

The buyers or users of products of an LSO

Question 19

Competitors

Answer 19

Other organisations that offer rival products or services

Question 20

Lobby groups

Answer 20

Groups of people who attempt to directly influence an organisation to adopt particular policies

Question 21

Macro environment

Answer 21

The broad factors in the economy and the society within which the organisation operates

Question 22

Efficiency

Answer 22

How well an organisation uses resources to achieve objectives

Question 23

Key performance indicators

Answer 23

Criteria used to measure the efficiency and effectiveness of the organisation’s performance

Question 24

Number of sales

Answer 24

Measures the number of products sold

Question 25

Percentage of market share

Answer 25

The proportion of the total market that a business has

Question 26

Rate of productivity growth

Answer 26

Measures the change in productivity in one year compared to the previous year

Question 27

Customer survey

Answer 27

Measures how satisfied customers are with the organisations performance

Question 28

Staff survey

Answer 28

Measures how satisfied staff are within the organisation

Question 29

Staff turnover

Answer 29

The number of staff who are leaving the organisation

Question 30

Number of workplace accidents

Answer 30

Indicates how safe the workplace is for employees

Question 31

Benchmarking

Answer 31

When an organisation measures it's performance against that of other leading organisations

Question 32

Stakeholders

Answer 32

Groups of individuals who interact with the organisation and have an interest in it's activities

Question 33

Social responsibility

Answer 33

The obligations a business has above it's legal responsibilities to the wellbeing of stakeholders

Question 34

Ethical management

Answer 34

The process of abiding moral standards and doing the right thing in the interests of all stakeholders

Question 35

Triple bottom line

Answer 35

The economic, social and environmental performance of an organisation