Chapter 3

Question 1

Planning

Answer 1

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

Question 2

Resource

Answer 2

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

Question 3

Human resources

Answer 3

They are employees who provide their time, energy,me kills 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

Established costs

Answer 6

Include those costs involved in setting up the business.

Question 7

Operating costs

Answer 7

Include those costs involved in the ordinary day to day running of the business

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 business

Question 11

Bank overdraft

Answer 11

The back allows a business or individual to over draw their account up to an agreed limit for a specified time, to help over come a temporary cash shortfall.

Question 12

Bank bills

Answer 12

Are short term securities issued by a business and bought by a bank.

Question 13

Trade credit

Answer 13

Trade credit exists when a supplier provides products to a business with an agreement to charge for the goods or services later.

Question 14

Mortgage

Answer 14

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

Question 15

Leasing

Answer 15

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

Question 16

Lessee

Answer 16

Is the person or business to whom a lease is granted

Question 17

Lessor

Answer 17

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

Question 18

Grant

Answer 18

Idk

Question 19

Marketing

Answer 19

Is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organisational objectives.

Question 20

Marketing objective

Answer 20

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

Question 21

Target market

Answer 21

Is the group of customers to which the business intends to sell its product.

Question 22

Marketing strategies

Answer 22

Are actions undertaken to achieve the business’s marketing objectives.

Question 23

Marketing mix

Answer 23

Refers to the combination of the four elements of marketing, the four p’s- 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

Enlightened self interest

Answer 25

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

Question 26

Triple bottom line

Answer 26

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

Question 27

Business plan

Answer 27

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