Business Management Unit 1 Notes CHT 1 – Flashcards
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Revenue
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An increase in owner's equity resulting from the operation of a business
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Expenses
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An expense is an outflow of money to another person or group to pay for an item or service, or for a category of costs.
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Profits
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In order for a firm to have an increase in market share as a pricing objective, it is assumed that the firm has?
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Finished Goods
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Units of product that have been completed but have not yet been sold to customers.
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Management
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"The process of organising resources. This may involve planning, organising and co-ordinating of all the resources available for a particular task."
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Production
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(economics) manufacturing or mining or growing something (usually in large quantities) for sale
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For Profit Organisation
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Objective: The aim of the organisation is to make a profit. For Example BHP billiton's half yearly net profit was $14.3 billion (June 2010)
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Non for Profit Organisation
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Objective: The aim of the organisation is to achieve its social for example the salvation army in its annual report (released 2009) stated that in the previous 12 months it had assisted more than 1 million people
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Market Share
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Refers to business share of the total industry sales for a particular product
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Small Business
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(Type): Corner store, Local Mechanic. (Employees): <20. Type of (Ownership): Owner. (Decision making): Owner. (Sources of Finance): Owner, usually savings or a loan.
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Medium Business
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(Type): Motel/Hotel, Services club. (Employees): >20-199. (Ownership): Owner, partners or private shareholders. (Decision making): Owner. (Sources Of finance): owners, partners, Shareholders, Private invested
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Large Business
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(Type): Woolworths, Qantas. (Employees): >200+. (Ownership): Owned by usually 1000s of shareholders. (Decision making): Complex due to the layers of holders which van make decisions very slow. (Finances): cash reserves, Shares, Overseas Institutes & loans
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Financial Objectives
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1. Increase Sales 2. Increase Market Share 3. Expand The Business
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Social Objectives
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Is a statement that details a specific desired outcome of a project that is related to the interaction of the individuals, groups and institutions within a society. 1. Community Service 2. Prevision Of Employment 3. Social Justice 4. Ecological Sustainability
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Economy
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A financial and social system of how resources flow through society, from production, to distribution, to consumption.
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Economic Growth
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An increase in gross domestic product illustrated by an outward shift of the long run aggregate supply curve or the production possibilities curve.
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Business Environment
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The surrounding factors that either help or hinder the development of businesses
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Internal Environment
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-Consists of the trends and events within an organization that affect the management, employees, and organizational culture
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External Environment
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All relevant forces outside a firm's boundaries, such as competitors, customers, the government, and the economy.
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SME
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Small Medium Enterprise
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Suppliers
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Companies that provide material, human, financial, and informational resources to other companies
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Interest Groups
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Are aggregates of individuals based on a limited range of shared common objective and trying to influence the company. They promote their policy agenda, in large part by providing legislators and policy makers with specialized information in issues.
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Sustainable Competitive Advantage
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An enduring differential advantage held over competitors by offering buyers superior value either through lower prices or other elements of the marketing mix.
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Free Trade
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An economic theory or policy of the absence of restrictions or tariffs on goods imported into a country. There is no "protection" in the form of tariffs against foreign competition.
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Tariff
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A special tax added to imported goods to raise the price, thereby protecting American businesses and workers from foreign competition.
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The Macro Environment
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consists of uncontrollable external forces that exert an influence on the organization, often referred to as "megatrends":
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Socially Responsible Management
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A mutual fund that actively and directly incorportates ethics and morality into the investment decision.
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Business Ethics
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The use of ethics in making business decisions
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Workplace Diversity
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Differences among coworkers including culture, race, age, gender, economic status, and religion among other things
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Conflict Of Interest
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A situation in which a person in a position of responsibility or trust has competing professional or personal interests that make it difficult to fulfill his or her duties impartially.
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Corruption
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is a lack of honesty or integrity within the business, using a position of trust or authority to receive favours, often financial bribes.
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Code Of Conduct
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A code of conduct is a set of ethical standards by which mangers and employers should abide by
