Introduction To Business

Question 1

What is an organisation?

Answer 1

Social arrangement
Pursuing collective goals
Controlling own performance
Boundary from environment

Question 2

What are the main elements of an organisation?

Answer 2

Social arrangements - purpose
Collective goals - organisational objectives
Controlled performance - measured
Boundary - physical (buildings, fences) & social (rules, ethics)

Question 3

What are the differences between organisations?

Answer 3

Ownership
Control
Activity
Profit/not-for-profit
Size
Legal status
Access to finance
Technology

Question 4

What is a business?

Answer 4

Profit orientated
Objective to maximise owner wealth

Question 5

What is NFP?

Answer 5

Organisation with primary objective to maximise benefits to beneficiaries e.g. charities
Provide goods or services

Question 6

What is a stakeholder?

Answer 6

A person or group of people who has a stake in the organisation.
Stakeholders are virtually everybody who is anything to do with the business 

Question 7

What are primary stakeholders?

Answer 7

Shareholders or owners

Question 8

Who are secondary stakeholders?

Answer 8

Management
Employees.
Customers
Suppliers
Lenders
Government
Analysts.
Society
Environment

Question 9

What are the businesses objectives?

Answer 9

Primary objectives - maximise, shareholder wealth (profit), maximise benefit the target stakeholder (NFP)
Secondary objectives - Market, standing, innovation, productivity, staff, development, corporate responsibility 

Question 10

What are the hierarchy of objectives?

Answer 10

After striving to maximise wealth, other objectives are :
Profit satisficing
Revenue maximisation?
Multiple objectives.
Business constraints.
ESG 

Question 11

What is a mission?

Answer 11

Purpose - Why does the organisation exist?
Strategy – what gives the company a competitive advantage?
Policies - what standards and behaviours are adopted?
Values – what beliefs do managers and employees share? 

Question 12

What is vision?

Answer 12

How does the organisation see itself in the future?

Question 13

What are goals?

Answer 13

A desired end result

Question 14

What are aims?

Answer 14

Qualitative non-operational goals

Question 15

What are objectives?

Answer 15

Quantitive operational goals

Question 16

What are plans?

Answer 16

What needs to be done to achieve objectives

Question 17

What are standards and targets?

Answer 17

The desired level of performance

Question 18

In objectives, what does Smart stand for?

Answer 18

Specific – easy to understand.
Measurable – quantified
Achievable
Relevant – appropriate to the mission and stakeholders.
Timed- have a time period for achievement 

Question 19

What are standards and targets?

Answer 19

Specifics of the desired level of performance

Question 20

What are the three types of standards?

Answer 20

Physical
Cost
Quality

Question 21

What is sustainability?

Answer 21

Meeting the needs of the current generation without affecting the future generations

Question 22

What are the three Ps with regards to sustainability?

Answer 22

People
Planet
Profit 

Question 23

What is a tangible resource?

Answer 23

Natural capital, e.g. soil, water
Benefits, people through ecosystem services and abiotic services

Question 24

What are intangible resources?

Answer 24

Human capital and stakeholder relationships

Question 25

What are the two ways in which organisations can view sustainability?

Answer 25

Impacts – impact on sustainability. Dependencies – impact to sustainability has an organisation

Question 26

What is the SEE framework? 

Answer 26

Social impact on people and communities. Environmental - impact on planet Earth climate? Economic-impact on profit and return to stakeholders.

Question 27

When was the triple bottom line ( TBL) created?

Answer 27

1990s

Question 28

What is the TBL reporting based on?

Answer 28

3 Ps People, e.g. fair, wages Planet, e.g. reduce fossil fuels. Profit, e.g. achieving an acceptable profit after tax

Question 29

What is the ESG?

Answer 29

Environmental, social and governance framework

Question 30

How does the ESG work?

Answer 30

Alternative framework which considers the internal approach taken by an organisation to manage sustainability. Environmental – achieve environmental sustainability. (Planet) Social – achieve social sustainability. (People) Governance – how the organisation is managed overall

Question 31

What does the ESG framework aim to do?

Answer 31

Focus the attention of management on Enterprise value - Value of business based on future cash flow Social value - Desire to generate long-term positive impacts on the community, environment, etc

Question 32

What is climate change?

Answer 32

Long-term shifts in temperature and weather patterns, primarily due to burning fossil fuels

Question 33

Went on zero targets due to be reached?

Answer 33

2050

Question 34

What Is the GHG protocol, corporate, accounting and reporting standard?

Answer 34

A guide which uses scope 1, 2 and 3 categorisation to define the scale of greenhouse gas emissions, which of course is directly or indirectly by an organisation. Scope 1 - GHG emissions made directly by organisation, e.g. company vehicles Scope 2 - GHG emissions made indirectly by organisation, e.g. electricity purchase. Scope 3 - GHG Emissions made indirectly through value chain e.g. by suppliers 

Question 35

What are upstream GHG emissions? 

Answer 35

Emissions from manufacture of raw materials e.g. car factory energy consumption

Question 36

What are downstream GHG emissions?

Answer 36

From use and disposal of products e.g. fuel from driving vehicles

Question 37

When did the UN create the 17 SDGs? What are the overarching aims?

Answer 37

2015 End poverty Fight inequality Stop climate change

Question 38

What are the SDG goals that affect business?

Answer 38

Decent work and economic growth Industry, innovation and infrastructure Responsible consumption and production

Question 39

What are the 4Rs of recycling?

Answer 39

Replace Reduce Reuse Recycle

Question 40

What are the mitigation hierarchies?

Answer 40

Eliminate negative impact. Reduce waste Substitute energy sources. Compensate those affected