Topic 2 Business Functions And The Activities Of The Businesses

Question 1

Purpose of the 8 business functions

Answer 1

Depend on each other to achieve the business goals.
Work together to ensure the survival and sustainability of the business.

Question 2

Relationship between the business functions

Answer 2

The general management function is directly linked to all seven business functions.
The financial and administration functions are responsible for gathering, storing and processing info and financial records.
Skilled staff are sourced and appointed by human resources function.

Question 3

Differences between management and leadership

Answer 3

Leadership
He/ she influences human behavior.
A leader creates vision direction.

Management
He / she guides the human behavior
A manager understands the goal of the business

Question 4

Meaning of the general management

Answer 4

Sets the overall direction or strategy for the business. Leads organises and controls the other functions.

Question 5

Meaning of the level of management

Answer 5

Determines the chain of command the amount of authority and status enjoyed by any managerial position.

Question 6

Top level management

Answer 6

Comprises of CEO and directors.
Ensure that people work together to accomplish certain goals.
Develop long term goals ,strategic plans and business policies

Question 7

Middle level management

Answer 7

Implement plans made by top level management.
Implement the vision and plans by top management.
Take medium term tactical decisions.
Responsible for specific departments within the business.

Question 8

Lower level management

Answer 8

Focus on controling and directing.
Take short term routine decisions.
Implement instructions given by Middle management.

Question 9

Type of decision of top level management

Answer 9

Make long term strategic decisions to achieve long term goals

Question 10

Middle level decisions

Answer 10

Make medium term tactical decisions

Question 11

Lower level decisions

Answer 11

Lower level management make short term operational decisions

Question 12

Responsibility of the top level management

Answer 12

Plan activities of the business
Manage changes in the business environment

Question 13

Responsibility of Middle level Management

Answer 13

Passes info from top management to lower management

Question 14

Responsibility to lower level management

Answer 14

Motivates and guides workers
Implements the objectives of the Middle management

Question 15

Meaning of management tasks

Answer 15

Tools used by an organisation to help complete projects more efficiently by organising and prioritising related tasks

Question 16

Management tasks

Answer 16

Planning
Organising
Leadership
Controlling
Risk management

Question 17

Planning

Answer 17

The chosen plan is implemented
The lower level management formulates operation plans
This task evaluates the exsiting goals and activities

Question 18

Organising

Answer 18

The task bring resources together to achieve set goals.
It’s the mechanism used to execute the plan.
Involves breaking a plan into actions.
Resources are pioritised to essential areas at any given time

Question 19

Leading

Answer 19

Motivate employees to achieve goals.
Motivate workers to use their skills and resources to their best ability.
Inspire employees to carry out their tasks to best of their abilities.
The employees are motivated to contribute to the success of the business

Question 20

Controlling

Answer 20

Ensure that the business achieves its goals.
Ensures that activities are carried out as planned.
Continous control ensures that the business runs smoothly.
The risk can be identified during control

Question 21

Risk management

Answer 21

Identify possible risk by finding risk bearing activities within the organisation.
Assist business to analyse each possible risk and how likely it is that the risk will happen.
Evaluate the potential impact of risks in terms of financial liability.

Question 22

Meaning of the organisational structure

Answer 22

A system that outlines how certain activities are directed to achieve the goals of an organisation.
These activities include rules , roles and responsibilities

Question 23

Factors that influence the organisational structure

Answer 23

Size of org
Strategy
Tech
Resiurces

Question 24

Types of organisational structures

Answer 24

Functional organisational structure and project organisational structure
Matrix Organisational structure

Question 25

Functional Organisational structure

Answer 25

Employees get instructions from more than on manager Plans to be executed Determines who will be giving instructions

Question 26

Project organisational structure

Answer 26

Structured around project teams Employees are then Grouped to form a project team that will carry out a particular project

Question 27

Matrix organisational structure

Answer 27

Structured around projects but employees remain in their departments. Ap project must be completed up to a certain point.

Question 28

Admin function

Answer 28

Responsible for collecting , processing and distributing info used for dicision making by management

Question 29

Activities of the Management function

Answer 29

Management info Handling info Office practice Collecting information Info tech

Question 30

Management function

Answer 30

Keeping all business transactions up to date Classifying amd collecting numerical data and statistics

Question 31

Handling information

Answer 31

Info collected form both outside and inside the business. Correct and reliable info should be available for meaningful decision making to run business successfully

Question 32

Office practice

Answer 32

Refers to how the admin staff should handle their duties. Covers matters such as the dress code for employees , proper filing.

Question 33

Collection of information

Answer 33

Info is collected from both in and out the business Correct and reliable info should be available for meaningful decision making and to run business successfully

Question 34

Information technology

Answer 34

It is the use of electronic equipment to assist with various admin tasks. Tech is used to communicate and handle info and is referred to as ICT

Question 35

Data

Answer 35

Refers to raw facts found in graphs/ tables. Data needs to be processed before it can be used as information.

Question 36

Information

Answer 36

Refers to processed data that provides info to managers in order to make decisions. Info can be stored manually in files/computers and so on.

Question 37

Financial function

Answer 37

Involves the acquiring and utilisation of funds necessary for efficient operations.

Question 38

Purpose of financial function

Answer 38

Determines how much capital the business needs. Establishes the sources for acquiring capital. Decides how to invest / allocate the capital funds in the business

Question 39

Why the business may need finance

Answer 39

Money for starting up the business, borrowing money in order to start a business. Money to replace machinery , equipment and computers Money for expansion to grow a successful business

Question 40

Sources of financing

Answer 40

Bank loans Bank overdraft Asset bases loans Grant Receivable funds Angel funding Venture capital Budgeting Investments

Question 41

Bank loans

Answer 41

Money borrowed from the bank which will be repaired and agreed upon a time frame. Used for long term financing Money repaid with intrest

Question 42

Bank overdraft

Answer 42

Short term loan added onto the account of an entrepreneur/business. Repaid with a set of intrest rate over an agreed upon time frame.

Question 43

Asset based loan

Answer 43

Money is lent to successful businesses that want to expand their operations. If money is not paid then lender will take that asset.

Question 44

Grants

Answer 44

Money provided by the government to small businesses in development phase. Money does not have to be paid back if it benefits the community

Question 45

Receivable finance

Answer 45

Loan is equal to outstanding invoices due.