Business Studies Exam Review Flashcards

A set of practice flashcards covering basic business concepts such as MOA, AOA, Bills of Exchange, E-Commerce, Capital types, Communication steps, Maslow's Hierarchy, and Theory X.

What is a Memorandum of Association (MOA)?

A legal document that establishes a company and defines its relationship with outsiders.

What is the purpose of a Memorandum of Association?

It creates the company, states the company’s objectives, and defines the limits within which the company can operate.

What information is contained in a Memorandum of Association?

Name of the company, registered office address, objectives of the company, liability of members, share capital of the company, and names and signatures of subscribers/founders.

What are Articles of Association (AOA)?

A document containing the rules and regulations for managing a company.

What is the purpose of the Articles of Association?

It governs internal operations and sets out rights and duties of directors and shareholders.

What are the main functions of the Articles of Association?

It regulates company management, states procedures for meetings, explains voting rights, provides rules for appointing directors, and guides the issue and transfer of shares.

What is a Bill of Exchange?

A written order directing one person to pay a specific sum of money to another person on demand or at a future date.

Who are the three parties involved in a Bill of Exchange?

Drawer (person who writes the bill), Drawee (person who pays), and Payee (person receiving payment).

What is E-Commerce?

The buying and selling of goods and services over the internet.

What are the key advantages and examples of E-Commerce?

Advantages include being convenient, available 24/7, and having a wider market reach. Examples include Amazon, eBay, and online banking.

What is a Standing Order?

An instruction given to a bank to make regular payments automatically from an account.

What are examples of payments commonly made by Standing Order?

Rent payments, insurance premiums, and loan repayments.

What is Fixed Capital?

Money invested in long-term assets used in the business.

What are examples and characteristics of Fixed Capital?

Examples include buildings, machinery, vehicles, and furniture. Characteristics are that it is used for many years and is not easily converted into cash.

What is Circulating Capital (Working Capital)?

Money used in the day-to-day running of a business.

What are examples and characteristics of Circulating Capital?

Examples include cash, stock/inventory, and debtors. Its main characteristic is that it continuously changes form during business operations.

What are the six stages in the Communication Process in sequential order?

1. Sender creates message, 2. Encoding – message is put into words/symbols, 3. Transmission – message is sent, 4. Receiver gets message, 5. Decoding – receiver interprets message, 6. Feedback – receiver responds.

What is Maslow’s Hierarchy of Needs and its five levels from lowest to highest?

A theory explaining human motivation. Levels: 1. Physiological Needs (food, water, shelter), 2. Safety Needs (security, protection), 3. Social Needs (friendship, belonging), 4. Esteem Needs (respect, recognition), 5. Self-Actualization (achieving full potential).

Who developed Theory X, and what are its key assumptions about workers?

Developed by Douglas McGregor. Assumptions: workers dislike work, must be supervised closely, avoid responsibility, and managers use strict control and discipline.

What are the characteristics of Theory X Managers?

They are authoritarian, closely supervise employees, and rely on rules and punishment.