Chapter Three

Question 1

Planning

Answer 1

Formulating objectives and determining how to achieve them

Question 2

Resource

Answer 2

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

Question 3

Human Resources

Answer 3

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, office equipment and stock

Question 5

Asset

Answer 5

Any item of value owned by the business

Question 6

Establishment Costs

Answer 6

Include those costs 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

The funds contributed by the owner/s of a business to commence and build it

Question 9

Debt

Answer 9

Funds provided by sources outside the business which must be paid back over time with interest

Question 10

Working Capital

Answer 10

The funds available for the short term financial commitments of a business

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

Question 12

Mortgage

Answer 12

A loan secured by the property of the borrower (the business)

Question 13

Leasing

Answer 13

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

Question 14

Lessee

Answer 14

The person or business to whom a lease is granted

Question 15

Lessor

Answer 15

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

Question 16

Marketing

Answer 16

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

Question 17

Marketing objective

Answer 17

A statement of what is to be achieved through the marketing activities

Question 18

Target Market

Answer 18

The group of customers to which the business intends to sell its product

Question 19

Marketing Strategies

Answer 19

Actions undertaken to achieve the businesses marketing objectives

Question 20

Marketing Mix

Answer 20

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 21

Marketing Management

Answer 21

Is the process of monitoring and modifying the marketing plan

Question 22

Enlightened Self Interest

Answer 22

Is the belief that a business ultimately helps itself when it helps to solve society’s problems

Question 23

Triple Bottom Line

Answer 23

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

Question 24

Business Plan

Answer 24

A written statement of the businesses goals and objectives