Chapter 1 Intro To Business Flashcards
(31 cards)
What is internal environment?
The internal environment, sometimes called the mirco environment, includes those factors over which the business has some degree of control.
What is business environment?
The business environment refers to the surrounding conditions in which the business operates. It can be divided into two broad categories: internal and external.
What is external environment?
The external environment includes those factors over which the business has little control. It may be further divided into two categories: operating and macro.
What is corporate culture?
The corporate culture is a set of mostly unwritten or informal rules that spell out how people are to behave most of the time.
What is policy?
A policy is a general guide to help employees deal with recurring situations.
What is competition?
Competition is rivalry among business that seek to satisfy a market.
What is competitors?
Competitors are businesses that offer rival products or services.
What is interest groups?
Interest groups are groups of people who attempt to directly influence or persuade an organisation to adopt particular policies.
What is sustainable competitive advantage?
A sustainable competitive advantage is the ability of a business to develop strategies that ensure it has an ‘edge’ over its competitors.
What is a stakeholder?
A stakeholder is any group or individual who has an interest in, or is affected by, the activities of a business.
What is a supplier?
A business’s supplier are those organisations and individuals that supply the resources that the business needs to conduct its operations.
What is operating environment?
A business’s operating environment, sometimes called the task environment, refers to the specific outside stakeholder with whom the business interacts in conducting its business.
What is profit?
A business makes a profit when the income earned (revenue) is greater than the costs of production (expenses).
What is business?
A business is an organisation that provides goods and/or services to consumers in order to make a profit.
What is finished goods?
Finished goods are those that are ready for customers to buy and use.
What is market share?
Market share refers to the business’s share of the total industry sales for a particular product.
What is a multinational corporation?
A multinational corporation (sometimes referred to as a transnational corporation) is a company that has branches in many different countries.
What is an objective?
An objective States what an organisation expects to achieve over a set period.
What is return on investment?
The returned on investment is a positive or negative percentage that relates the money gained or lost on an investment to the cost of that investment. It is usually taken to mean that the return on the investment occurs over a 12-month period.
What is an economy?
An economy is a system set up to determine what to produce and to whom produce, how to produce and to whom production will be distributed.
What is economic growth?
Economic growth occurs when the real value of goods and services increases over a set period of time.
What is the macro environment?
The macro environment is made up of the broad conditions and trends in the economy and society within which a business operates.
What is free trade?
Free trade should take place without any restrictions such as tariffs.
What is a tariff?
A tariff is a tax imposed on imported goods, usually to protect locally produced suppliers of similar items.
