Higher Business Management - Understanding Business Exam Questions And Answers Practice Questions with Solutions Newest | Already Graded A+

Higher Business Management - Understanding Business Exam Questions And Answers Practice Questions with Solutions Newest | Already Graded A+ Primary sector - Answer- This sector of industry is concerned with the extraction of raw materials or natural resources from the land Secondary sector - Answer- This sector of industry is concerned with manufacturing Tertiary sector - Answer- This sector of industry is concerned with providing a service Quaternary sector - Answer- This sector consists of those industries providing information services, such as computing, ICT (information and communication technologies), consultancy (offering advice to businesses) and R&D (research, particularly in scientific fields) Private sector organisation - Answer- Organisations in this sector are owned and controlled by private individuals Private sector organisation - Answer- Organisations in this sector aim to survive and make a profit Public sector organisation - Answer- Organisations in this sector are owned and controlled by the government Public sector organisation - Answer- Organisations in this sector aim to provide a service to the public and are funded by taxes Third sector organisation - Answer- Organisations that are run not for profit and independently of the government Third sector organisation - Answer- Organisations in this sector aim to raise money and increase awareness for good causes Social Enterprise - Answer- An organisation that is run like a business but that is "not for profit". All profits are reinvested into the organisation Charity - Answer- A non-profit organisation that exists to help a cause in society Limited Liability - Answer- When shareholders are only liable for the amount invested in a company Public Limited Company - Answer- A company where shares are offered to the public Multinational - Answer- A company which has its headquarters in one country but has assembly or production facilities in other countries Franchise - Answer- A business model that allows businesses to pay a sum of money to own a branch of a well-known, existing business Franchiser - Answer- The main original business which has been turned into a franchise Franchisee - Answer- The owner of each individual franchise branch Economies of scale - Answer- The cost advantages of operating on a larger scale, for example, buying more cheaply in bulk and reducing unit costs Equity - Answer- Money invested in a business Corporation Tax - Answer- Tax paid on the profit made by a company to the Government Share issue - Answer- When a limited company offers equity to investors Dividend - Answer- A share of profits paid to shareholders Objectives - Answer- A statement of what a business is trying to achieve over the next 12 months Corporate social responsibility - Answer- When a company aims to act ethically and responsibly so they look good to the public Satisfice - Answer- To do the minimum amount needed to achieve a particular goal Market share - Answer- A company's proportion of sales within a specific market Stakeholder - Answer- A person or group with a key interest in an organisation Internal/Organic growth - Answer- When a business decides to grow on their own without Horizontal integration - Answer- When two businesses from the same sector of industry become one business Vertical integration - Answer- Occurs when two businesses from different sectors of industry become one business Forward vertical integration - Answer- When a business takes over or merges with a business in a later sector of industry, often a distributor Backward vertical integration - Answer- When a business takes over or merges with a business in an earlier sector so a supplier Lateral integration - Answer- When a business acquires or merges with a business that is in the same industry but does not provide the exact same product Conglomerate integration - Answer- When businesses in different markets join together Retained profits - Answer- Any profits made by the business that aren't given to shareholders Deintegration - Answer- When a business sells off part of the supply chain that it owns De-merger - Answer- Occurs when a single business splits into two or more separate companies Divestment - Answer- Selling off part of an organisation, such as a subsidiary company or one of the company's brands Asset stripping - Answer- Taking over another company with intent to sell off its assets for a profit Management buy-out - Answer- When the management of a business buy the company they work for Management buy-in - Answer- When the management of anther business, usually a competitor, takes over the business Outsourcing - Answer- When an organisation arranges for another organisation to carry out certain activities for it instead of doing it itself External factors - Answer- Different situations that impact on the success of an organisation that arise outside the organisation Political factors - Answer- These factors arise from decisions made and actions taken by the government Competition policy - Answer- The main aim of this policy is to ensure that there is fair competition in the market