INTRODUCTION TO BUSINESS MANAGEMENT CHAPTER 1 QUESTIONS
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Business Plan
A document that sets out the businesses goals, objectives, ideas and details on how the
business will operate
Customers
People who buy the product
Consumers
People who actually use the product
Entreprenuers
People who decide to set up their own business, they are the owners and operators of
an organisation. They are risk takers who exploit business opportunities in return for
profits.
Intrapreneurship
Act of behaving as an entrepreneur but as an employee within a large business. They
work to create innovative products or new processes for the organisation
Primary Sector
Businesses involved in the cultivation or extraction of natural resources
Product
can refer to both goods and services
Quaternary Sector
Businesses are involved in intellectual,knowledge-based activities that generate and
share information.
Secondary Sector
is the section of the economy where business activity is concerned with the construction
and manufacturing of products
Sectoral Change
shift in the relative share of gross domestic product and employment that is attributed to
each business sector
Tertiary Sector
Section of the economy where business activity is concerned with the provision of
services to customers
Wants
Peoples Desires
Private sector
Part of the economy run by private individuals and businesses, rather than by the
government. e.g sole traders, partnerships, companies and cooperatives
Aims
Aims are the long term goals of a business often expressed in the firms mission
statement. They are a general statement of a firms purpose or intentions and tend to be
qualitative in nature.
Public-Private partnerships
Occur when the government works together with the private sector to provide certain
goods or services
, Public Sector
The part of economy that is controlled by the government to provide essential goods
and services to the general population.
Sole trader
Self-employed person who runs and controls the business and is the sole person held
responsible for its profits and failures
Social Enterprises
A revenue generating business with social objectives at the core of their operation. They
can be profit or non-profit businesses. But all the profits are reinvested for that social
purpose.
Publicly held company
An incorporated limited liability company that allows shareholders to buy and sell shares
through a stock exchange.
Business Cycle
It refers to the fluctuation in the level of business activity over time. Countries tend to
move through the cycle of boom, recessions, slumps, recovery and growth.
Deregulation
The removal or relaxation of government rules which constrain an industry to enhance
efficiency and encourage more competition.
Economic Growth
An increase in gross domestic product.
Ethics
The moral values and judgements that guide decision making and business strategy.
Tactical objectives
Short-term goals that affect one unit of an organisation and guide them in their daily
operations.
Corporate Social Resposability (CSR)
The conscientious consideration of ethical and environmental practice related to
business activity.
Ethical Objectives
Goals set by an organisation based on moral guidelines
SWOT analysis
A tool which identifies the strengths, weaknesses, opportunities and threats in a market
Ansoff Matrix
A tool used to help companies decide on the best method for encouraging growth
through the marketing of new or current products to new or current markets.
Unemployment
The number of people in the population who are willing and able to work but cannot find
employment
External Stakeholders
Groups outside a business or people who are not directly working within the business
but are affected in some way from the decisions of the business, such as customers,
Backward vertical integration
When a business amalgamates with a firm operating in an earlier stage of production,
e.g a car manufacturer acquires a supplier of tyres or other components.
Conglomerates
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Business Plan
A document that sets out the businesses goals, objectives, ideas and details on how the
business will operate
Customers
People who buy the product
Consumers
People who actually use the product
Entreprenuers
People who decide to set up their own business, they are the owners and operators of
an organisation. They are risk takers who exploit business opportunities in return for
profits.
Intrapreneurship
Act of behaving as an entrepreneur but as an employee within a large business. They
work to create innovative products or new processes for the organisation
Primary Sector
Businesses involved in the cultivation or extraction of natural resources
Product
can refer to both goods and services
Quaternary Sector
Businesses are involved in intellectual,knowledge-based activities that generate and
share information.
Secondary Sector
is the section of the economy where business activity is concerned with the construction
and manufacturing of products
Sectoral Change
shift in the relative share of gross domestic product and employment that is attributed to
each business sector
Tertiary Sector
Section of the economy where business activity is concerned with the provision of
services to customers
Wants
Peoples Desires
Private sector
Part of the economy run by private individuals and businesses, rather than by the
government. e.g sole traders, partnerships, companies and cooperatives
Aims
Aims are the long term goals of a business often expressed in the firms mission
statement. They are a general statement of a firms purpose or intentions and tend to be
qualitative in nature.
Public-Private partnerships
Occur when the government works together with the private sector to provide certain
goods or services
, Public Sector
The part of economy that is controlled by the government to provide essential goods
and services to the general population.
Sole trader
Self-employed person who runs and controls the business and is the sole person held
responsible for its profits and failures
Social Enterprises
A revenue generating business with social objectives at the core of their operation. They
can be profit or non-profit businesses. But all the profits are reinvested for that social
purpose.
Publicly held company
An incorporated limited liability company that allows shareholders to buy and sell shares
through a stock exchange.
Business Cycle
It refers to the fluctuation in the level of business activity over time. Countries tend to
move through the cycle of boom, recessions, slumps, recovery and growth.
Deregulation
The removal or relaxation of government rules which constrain an industry to enhance
efficiency and encourage more competition.
Economic Growth
An increase in gross domestic product.
Ethics
The moral values and judgements that guide decision making and business strategy.
Tactical objectives
Short-term goals that affect one unit of an organisation and guide them in their daily
operations.
Corporate Social Resposability (CSR)
The conscientious consideration of ethical and environmental practice related to
business activity.
Ethical Objectives
Goals set by an organisation based on moral guidelines
SWOT analysis
A tool which identifies the strengths, weaknesses, opportunities and threats in a market
Ansoff Matrix
A tool used to help companies decide on the best method for encouraging growth
through the marketing of new or current products to new or current markets.
Unemployment
The number of people in the population who are willing and able to work but cannot find
employment
External Stakeholders
Groups outside a business or people who are not directly working within the business
but are affected in some way from the decisions of the business, such as customers,
Backward vertical integration
When a business amalgamates with a firm operating in an earlier stage of production,
e.g a car manufacturer acquires a supplier of tyres or other components.
Conglomerates
