extra Flashcards
(30 cards)
the role of a business
combine human, physical and financial resources to create goods and services
role of HR
managing the organizations personnel
role of Marketing
identifying the costumer wants and need
Role of finance
manging the organizations money
role of operation
converts raq materials into finifhed goods
Private sector
owned and controoled by private individuals and aims to make profit
Public sector
owned by the government and provides essential goods and services that would otherwise be innefficiently (water and electricity)
unicorporated business
business where there is no legale distincion between the owner and the business itself (sole traders and partnership)
Incorporated business
business that have separate legal entitty from their owners (private and public limited companies)
advantages and disadvantages of a sole traders
Advantages:
fewer legal formalities
Anutonomy
Personalized service
Profit goes directly to him
Disadvantages
Unlimited liability
Limited sources of finance
High risk
Limited economies of scale
sole trader
an individual who runs and owns his own business
Partnership
a profit-seeking business owned by multiple people
advantages and disadvantages of a partnership
Advantages
Set up costs are inexpensive
Financial strength
Specialisation and division of labour due to multiple partners
Disadvantages
Unlimited liability
Lack of Harmony
Profits must be shared
Social ENterprise
revenue generating business with social objectives at centre of business operations. They run according to business principles but do not aim at making profit
Cooperatives
business owned and run by their members, imcluding employees and costumers
advantages and disadvantages of copperatives
advantages
employees have descision making
CSR
publi support
Disadvantages
Limited sources of finance
Slower descinion making
Limited promotional opport
Microfinance providers
financial services aimed at financing disadvantages members of society
Advantages and disadvantages of Microfinance providers
Advantages
Job creation
Social well-being incentives
Disadvantage
Limited finance
Limited eligibility
public-private partnerships
when the government works together with the private sector to jointly provide certain goods and services
vision statment
specifies the long-term aspirations of a business. where its ultimalty wants to be
mission statement
a definition of the company’s business, who it serves, what it does, its objectives, and its approach to reaching those objectives.
Strategic objectives
the senior leadership sets the long-term goals, determines the actions necessary to achive the goals and mobilises resources to execute the actions
Tactical Objectives
middle managment develops medium-term plans to achive the strategic objectives
Operational Objectives
Lower managment develops short-term plan tow achive tactical objectives
