Chapter One - Introducing Business

Question 1

What is a business?

Answer 1

A business is an organisation that’s provides goods and or/services to consumers in order to make a profit

Question 2

What are Finished goods?

Answer 2

Finished goods are those that are ready for customers to buy and use.

Question 3

What is market share?

Answer 3

Market share refers to the business’s share of the total industry sales for a particular product.

Question 4

What is a multinational corporation?

Answer 4

A multinational corporation is a company that branches in many different countries.

Question 5

What is a objective?

Answer 5

An objective states what an organisation expects to achieve over a set period.

Question 6

What is the return on investment?

Answer 6

The return 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 return on the investment occurs over a 12 month period.

Question 7

What is economic growth?

Answer 7

Economic growth occurs when the real value of goods and services increases over a set period of time.

Question 8

What is a business environment?

Answer 8

The business environment refers to the surrounding conditions in which the business operates. It can be divided into two board categories: internal and external.

Question 9

What is an internal environment?

Answer 9

The internal environment, sometimes called the micro environment, includes those factors over which the business has some degree of control.

Question 10

What is economy?

Answer 10

An economy is a system to set up to determine what to produce, how to produce and to whom production will be distributed.

Question 11

What is external environment?

Answer 11

The external environment includes those factors over which the business has little control. It may be further divided into two categories: operating and macro.

Question 12

What is corporate culture?

Answer 12

The corporate culture is a set of mostly unwritten or informal rules that spell out how people are to behave most of the time.

Question 13

What is a policy?

Answer 13

A policy is a general guide to help employees deal with recurring situations.

Question 14

What is a operating environment?

Answer 14

A business’s operating environment, sometimes called the task environment, refers to the specific outside stakeholders with whom the business interacts in conducting its business.

Question 15

What is a stakeholder?

Answer 15

A stakeholder is any group or individual who has an interest in, or is affected by, the activities of a business.

Question 16

What is a supplier?

Answer 16

A business’s suppliers are those organisations and individuals that supply the resources that the business needs to conduct its operations.

Question 17

What is a business competition?

Answer 17

Competition is rivalry among businesses that seek to satisfy a market.

Question 18

What are business competitors?

Answer 18

Competitors are businesses that offer rival products or services.

Question 19

What is a sustainable competitive advantage?

Answer 19

A sustainable competitive advantage is the ability of a business to develop strategies that ensure it has an ‘edge’ over its competitors.

Question 20

What are interest groups?

Answer 20

Interest groups are groups of people who attempt to directly influence or persuade an organisation to adopt particular policies.

Question 21

What is a macro environment?

Answer 21

The macro environment is made up of the broad conditions and trends in the economy and society within which a business operates.

Question 22

What is business free trade?

Answer 22

Free trade should take place without any restrictions such as tariffs.

Question 23

What is a tariff?

Answer 23

A tariff is a tax imposed on imported goods, usually to protect locally produced suppliers of similar items.

Question 24

What is workplace diversity?

Answer 24

Workplace diversity means the multitude of individual differences that exist among people in the workplace.

Question 25

What are business ethics?

Answer 25

Business ethics is the application of moral standards to business behaviour.

Question 26

What is socially responsible management?

Answer 26

Socially responsible management is managing an organisation in such a way that the broader social welfare of the community is taken into consideration when making business decisions.

Question 27

What are stakeholders?

Answer 27

Stakeholders are individuals or groups with an interest in the success of the business.

Question 28

What is conflict of interest?

Answer 28

Conflict of interest occurs when a person takes advantage of a situation or piece of information for his or
her own gain rather than for the employer’s interests.

Question 29

What is corruption?

Answer 29

Corruption is a lack of honesty or integrity; using a position of trust or authority to receive favours, often financial bribes.

Question 30

What is a code of conduct?

Answer 30

A code of conduct is a set of ethical standards by which managers and employees should abide.

Question 31

What is profit?

Answer 31

A business makes a profit when the income earned is greater than the cost of production