Functions of a Business

Question 1

What is the main goal for all businesses?

Answer 1

Profit

Question 2

Functions that work together to achieve profit in a business are?

Answer 2

Administration
Purchasing
Marketing
Financial functions
Public Relations
Human Resources
Production

Question 3

What role does the Administration sector play?

Answer 3

Supports other functions
Gather and process data into INFOMATION
Help workers make decisions with the info

Question 4

What does the Purchasing role do?

Answer 4

Responsible for sourcing, buying and finalizing goods that are needed to operate.
Done via internet.
E-procedure is the technology used to source and buy goods.

Question 5

What does the Marketing role do?

Answer 5

Marketing is using methods to bring people in to buy your product.

Marketing Functions include:
Market research
Advertising
Sales
Distribution

Question 6

Marketing research

Answer 6

Find out about your market
you need to know your Target market, Market size and Competition

Question 7

Advertising

Answer 7

Create awareness of your product and to bring people to buy your product

Question 8

Sales

Answer 8

Sales department must decide on a correct price to make money

Question 9

Distribution

Answer 9

The process of making goods and services available for use.

Question 10

The Marketing Mix (Known as the 4 p’s)

Answer 10

Product - Item produced to sell. Must suit wants and needs.
Price - Should make the customer feel like its value for money.
Place - Transport costs must be considered when choosing a place for a business.
Promotion - 5 forms of advertising; TV, Radio, Printed adverts, Displays and word of mouth.

Question 11

The financial department needs the following to ensure profit.

Answer 11

Spend finances in the most effective way.
Control spending.
Allocate funds to departments.
Finds best investments.

Question 12

3 Sources of Capital

Answer 12

Own capital (Savings or inheritance)
Borrowed Capital (Banks or family/friends)
Physical capital (Machinery or land)

Question 13

Types of Capital

Answer 13

Fixed Capital (Long term value eg.land)
Working Capital (Short term value eg.wages/telephone)

Question 14

Public Relations

Answer 14

External public relations - creates a good image of the company.
Internal public relations - promotes the image of the company and insures loyalty from employees.

Question 15

Why is good Public Relations important?

Answer 15

Supplier will continue to provide.
Customers stay loyal.
Investors will keep investing.
Financial institutions will support loans and funding.
Media will promote.
Government will show support.
Employees will be attracted.

Question 16

Methods of carrying out Public Relations

Answer 16

Brochures.
Internet and social media.
Media like TV, radios and magazines.
Corporate social responsibility by helping people.
Networking, like attending events.

Question 17

Human Resources

Answer 17

Involve people that work in the business.
Provided by: Planning, Recruitment, Selection, placement and Induction.

Question 18

Human Resources Working Conditions

Answer 18

Workplace should be safe.
Workers should be motivated and more productive in a safe workplace.
Workers can be injured in an unsafe or unhygienic workplace.

Question 19

Labor Relations

Answer 19

It is the making, managing and improving the relationships between employees and employers.
Trade Unions can help this.
if there is conflict the production will be low and jobs wont be performed well.

Question 20

What does the Production role do?

Answer 20

It is responsible to produce the goods and services.
Production is turning raw materials to finished products.

Question 21

4 Inputs for Production to happen

Answer 21

Capital
Land
Labor
Entrepreneurship

Question 22

3 main activities of the production function

Answer 22

Research and development.
Production and quality.
Distribution and logistics.