What is a Business question and answer flashcards

Why Businesses Exist and Businesses Aims and Objectives

Why do businesses exist?

Provide goods and services for the market.

What is the transformation process in a business?

Process of converting inputs (raw materials) into outputs (finished goods/ products) to satisfy the needs and wants of consumers.

What is a business to consumer (B2C) organization?

A business that sells goods and services directly to consumers, such as Spotify.

What is a business to business (B2B) organization?

A business that sells goods and services to another business(es), such as selling resources to school

What are the three sectors businesses can be categorized into?

Primary sector (raw materials), Secondary sector (manufacturing), Tertiary sector (services).

What is the purpose of a business mission statement?

It sets out the business’s beliefs and values.

What are corporate aims?

● And what does it support?

Long-term goals of the business that support its mission statement.

What does SMART stand for in setting objectives?

Specific, Measurable, Attainable, Realistic, Timely.

What is profit maximization?

A business objective that focuses on achieving the highest amount of profit for shareholders.

What does 'survival' mean as a business objective?

Requirement for a business to continue trading despite challenges in the external environment.

What are social objectives for a business?

Supporting society through initiatives like sustainability and fair trade.

What are the benefits of setting business objectives?

● Satnav

● Man with a PLAN

● Co-ordinate….

For Employees to work the……

They provide direction, support planning, and coordinate resources to ensure all employees work towards the same aim.