BUSINESS UNIT 1.IGCSE.
"Public corporations - CORRECT ANSWER These are businesses that are fully owned
by the government. But they are managed by a board of directors who are made clear
what the purpose of the business is."
"Business objectives - CORRECT ANSWER Business objectives are the aims or
targets that a business works towards. SMART- specific, measurable, agreed upon,
realistic, time oriented."
"Benefits of business objectives - CORRECT ANSWER -They give workers and
managers a clear target to work towards
-Making decisions will be easier since they will focus on "will it help us achieve our
objectives"
-Helps unite entire business under one goal
-Can compare how business has performed compared to its objectives"
"Different types of objectives - CORRECT ANSWER -Survival
-Profit
-Growth
-Returns to shareholders
-Market share
-Service to the community"
"Objectives of social enterprises - CORRECT ANSWER Social: to provide jobs and
support for the disadvantaged groups in society
Environmental: to protect the environment
Financial: to make a profit to reinvest back into the business."
"Market share - CORRECT ANSWER Market share is the proportion of total market
sales achieved by one business."
"Stakeholder - CORRECT ANSWER A stakeholder is any person or group with a direct
interest in the performance and activities of a business."
"Stakeholder groups - CORRECT ANSWER -Owners
-Consumers
-Workers
-Government
-Managers
-Banks
-The entire community"
"Objectives for owner - CORRECT ANSWER -Growth of the business so their
investment is worth more
1
, -Want a share of the profit made by company"
"Objectives for workers - CORRECT ANSWER -Regular payment
-Contract of employment
-Job security
-Job that gives satisfaction and provides motivation"
"Objective for consumers - CORRECT ANSWER -Safe and reliable products
-Value for money
-Well-designed product of good quality
-Reliability of service and maintenance"
"Objective for managers - CORRECT ANSWER - High salaries for their important work
- Job security
-Growth of business so they can have more status and power"
"Objective for Government - CORRECT ANSWER -Business to be successful, will pay
taxes, employ workers and increase country output
-Business to follow laws"
"Objective of the whole community - CORRECT ANSWER -Jobs for working population
-Product that does not damage the environment
-Safe products that are socially responsible"
"Objective for banks - CORRECT ANSWER -Business to pay back money lent with
interest"
Business - CORRECT ANSWER An organisation which produces goods and services."
"Need - CORRECT ANSWER A need is a good or service essential for living."
"Want - CORRECT ANSWER A want is a good or service which people would like to
have, but which is not essential for living. People's wants are unlimited."
"Economic problem - CORRECT ANSWER There exist unlimited wants but limited
resources to produce the goods and services to satisfy those wants, this creates
scarcity."
"Scarcity - CORRECT ANSWER Scarcity is the lack of sufficient products to fulfill the
total wants of the population."
"Factors of production - CORRECT ANSWER Factors of production are those
resources needed to produce goods or services. There are four factors of production
and they are in limited supply."
2
"Public corporations - CORRECT ANSWER These are businesses that are fully owned
by the government. But they are managed by a board of directors who are made clear
what the purpose of the business is."
"Business objectives - CORRECT ANSWER Business objectives are the aims or
targets that a business works towards. SMART- specific, measurable, agreed upon,
realistic, time oriented."
"Benefits of business objectives - CORRECT ANSWER -They give workers and
managers a clear target to work towards
-Making decisions will be easier since they will focus on "will it help us achieve our
objectives"
-Helps unite entire business under one goal
-Can compare how business has performed compared to its objectives"
"Different types of objectives - CORRECT ANSWER -Survival
-Profit
-Growth
-Returns to shareholders
-Market share
-Service to the community"
"Objectives of social enterprises - CORRECT ANSWER Social: to provide jobs and
support for the disadvantaged groups in society
Environmental: to protect the environment
Financial: to make a profit to reinvest back into the business."
"Market share - CORRECT ANSWER Market share is the proportion of total market
sales achieved by one business."
"Stakeholder - CORRECT ANSWER A stakeholder is any person or group with a direct
interest in the performance and activities of a business."
"Stakeholder groups - CORRECT ANSWER -Owners
-Consumers
-Workers
-Government
-Managers
-Banks
-The entire community"
"Objectives for owner - CORRECT ANSWER -Growth of the business so their
investment is worth more
1
, -Want a share of the profit made by company"
"Objectives for workers - CORRECT ANSWER -Regular payment
-Contract of employment
-Job security
-Job that gives satisfaction and provides motivation"
"Objective for consumers - CORRECT ANSWER -Safe and reliable products
-Value for money
-Well-designed product of good quality
-Reliability of service and maintenance"
"Objective for managers - CORRECT ANSWER - High salaries for their important work
- Job security
-Growth of business so they can have more status and power"
"Objective for Government - CORRECT ANSWER -Business to be successful, will pay
taxes, employ workers and increase country output
-Business to follow laws"
"Objective of the whole community - CORRECT ANSWER -Jobs for working population
-Product that does not damage the environment
-Safe products that are socially responsible"
"Objective for banks - CORRECT ANSWER -Business to pay back money lent with
interest"
Business - CORRECT ANSWER An organisation which produces goods and services."
"Need - CORRECT ANSWER A need is a good or service essential for living."
"Want - CORRECT ANSWER A want is a good or service which people would like to
have, but which is not essential for living. People's wants are unlimited."
"Economic problem - CORRECT ANSWER There exist unlimited wants but limited
resources to produce the goods and services to satisfy those wants, this creates
scarcity."
"Scarcity - CORRECT ANSWER Scarcity is the lack of sufficient products to fulfill the
total wants of the population."
"Factors of production - CORRECT ANSWER Factors of production are those
resources needed to produce goods or services. There are four factors of production
and they are in limited supply."
2
