Podcast
Questions and Answers
Which of the following is the MOST accurate definition of the 'chain of production'?
Which of the following is the MOST accurate definition of the 'chain of production'?
- The series of steps involved in transforming raw materials into a marketable finished product. (correct)
- The process of marketing and selling a finished product.
- The financial investments made in turning raw materials into a product.
- The organizational structure responsible for resource allocation in manufacturing sector.
An entrepreneur is best described as someone who avoids financial risk while planning and organizing a business.
An entrepreneur is best described as someone who avoids financial risk while planning and organizing a business.
False (B)
Explain the primary distinction between an entrepreneur and a visionary in the context of business development.
Explain the primary distinction between an entrepreneur and a visionary in the context of business development.
An entrepreneur transforms ideas into businesses, while a visionary has foresight and drives an organization's strategic growth often seeing trends before they materialize.
A major challenge for new businesses is often a lack of ______ to acquire essential assets.
A major challenge for new businesses is often a lack of ______ to acquire essential assets.
Match the following sectors with examples of their respective fields:
Match the following sectors with examples of their respective fields:
Which of the following best describes the role of a 'visionary' in an organization?
Which of the following best describes the role of a 'visionary' in an organization?
A business is looking to expand its operations. According to GET'M CUSH, what would be the most appropriate course of action?
A business is looking to expand its operations. According to GET'M CUSH, what would be the most appropriate course of action?
The 'chain of production' primarily concerns itself with the marketing and sales strategies of a finished product, rather than the steps to create it.
The 'chain of production' primarily concerns itself with the marketing and sales strategies of a finished product, rather than the steps to create it.
Which of the following is an advantage of a business adopting ethical practices?
Which of the following is an advantage of a business adopting ethical practices?
Adopting ethical objectives always aligns with the goal of profit maximization for all stakeholders.
Adopting ethical objectives always aligns with the goal of profit maximization for all stakeholders.
Explain how being environmentally friendly can potentially lead to reduced costs for a business.
Explain how being environmentally friendly can potentially lead to reduced costs for a business.
A potential disadvantage of ethical practices is that the definition of what is 'right' or 'wrong' can be highly ______, depending on public opinion and cultural views.
A potential disadvantage of ethical practices is that the definition of what is 'right' or 'wrong' can be highly ______, depending on public opinion and cultural views.
A company decides to source only fair-trade coffee beans, paying significantly higher prices to farmers. How would this most likely affect the company's financial performance?
A company decides to source only fair-trade coffee beans, paying significantly higher prices to farmers. How would this most likely affect the company's financial performance?
What is a primary benefit of demonstrating ethical behavior towards employees?
What is a primary benefit of demonstrating ethical behavior towards employees?
Ethical businesses never face stakeholder conflicts.
Ethical businesses never face stakeholder conflicts.
Match the following ethical business advantages with their corresponding description:
Match the following ethical business advantages with their corresponding description:
Which of the following is the most direct way that profit encourages innovation in a business?
Which of the following is the most direct way that profit encourages innovation in a business?
Directors of a limited liability company primarily focus on short-term profitability to maximize immediate returns to shareholders, even if it risks long-term growth.
Directors of a limited liability company primarily focus on short-term profitability to maximize immediate returns to shareholders, even if it risks long-term growth.
Define 'ethical objectives' in the context of business decision-making, and explain why they are important.
Define 'ethical objectives' in the context of business decision-making, and explain why they are important.
A(n) ___________ is a formal, documented policy that outlines how a business believes it should behave, providing guidelines for acceptable conduct and responses to integrity challenges.
A(n) ___________ is a formal, documented policy that outlines how a business believes it should behave, providing guidelines for acceptable conduct and responses to integrity challenges.
Match the following ethical and social responsibility practices with their primary benefit to a business:
Match the following ethical and social responsibility practices with their primary benefit to a business:
What is the primary role of an ethical code of conduct within a company?
What is the primary role of an ethical code of conduct within a company?
Corporate social responsibility (CSR) primarily involves acting morally towards stakeholders and society without the need for a formal, documented policy.
Corporate social responsibility (CSR) primarily involves acting morally towards stakeholders and society without the need for a formal, documented policy.
Explain how protecting shareholder value involves balancing short-term and long-term goals. Provide an example of how a company might achieve this balance.
Explain how protecting shareholder value involves balancing short-term and long-term goals. Provide an example of how a company might achieve this balance.
Which of the following best describes the primary focus of directors within an organization?
Which of the following best describes the primary focus of directors within an organization?
Which of the following is a potential drawback of a partnership concerning continuity?
Which of the following is a potential drawback of a partnership concerning continuity?
Middle managers are mainly concerned with improving customer relations to boost the company's competitiveness.
Middle managers are mainly concerned with improving customer relations to boost the company's competitiveness.
What is the main goal of managers/directors in terms of time and resources?
What is the main goal of managers/directors in terms of time and resources?
A larger client base generally reduces pressure and stress for legal professionals.
A larger client base generally reduces pressure and stress for legal professionals.
What specific event can cause a partnership deed to become invalid, potentially disrupting the firm's operations?
What specific event can cause a partnership deed to become invalid, potentially disrupting the firm's operations?
__________ management is responsible for monitoring and controlling day-to-day tasks.
__________ management is responsible for monitoring and controlling day-to-day tasks.
Specializing in multiple areas of law, such as corporate law, divorce law, and criminal law, is _______ to be equally effective for all roles.
Specializing in multiple areas of law, such as corporate law, divorce law, and criminal law, is _______ to be equally effective for all roles.
Which level of management typically sets departmental objectives and implements strategies to achieve organizational goals?
Which level of management typically sets departmental objectives and implements strategies to achieve organizational goals?
Match the following aspects with their corresponding characteristic in partnerships:
Match the following aspects with their corresponding characteristic in partnerships:
Improving individual salaries and bonuses is a primary function of top-level directors.
Improving individual salaries and bonuses is a primary function of top-level directors.
What makes it easier to plan for long-term continuity in some partnership structures?
What makes it easier to plan for long-term continuity in some partnership structures?
Match the management level with its corresponding responsibility:
Match the management level with its corresponding responsibility:
Which management level is most concerned with maintaining and improving the company's competitiveness?
Which management level is most concerned with maintaining and improving the company's competitiveness?
Partnerships always offer seamless continuity, ensuring uninterrupted business operations regardless of partner changes.
Partnerships always offer seamless continuity, ensuring uninterrupted business operations regardless of partner changes.
What are the three areas of law mentioned where a legal professional might specialize?
What are the three areas of law mentioned where a legal professional might specialize?
Which of the following is a potential disadvantage of cooperatives related to decision-making?
Which of the following is a potential disadvantage of cooperatives related to decision-making?
Cooperatives usually find it easy to hire specialist managers due to competitive financial rewards.
Cooperatives usually find it easy to hire specialist managers due to competitive financial rewards.
How do non-profit social enterprises utilize any financial surplus they generate?
How do non-profit social enterprises utilize any financial surplus they generate?
Member-owners of a cooperative experience no pressure from external investors because they can run the business in a way that best suits their own _______.
Member-owners of a cooperative experience no pressure from external investors because they can run the business in a way that best suits their own _______.
Match the following characteristics with the appropriate social enterprise model:
Match the following characteristics with the appropriate social enterprise model:
A key characteristic of cooperatives is equal voting rights. How does this impact the cooperative's environment?
A key characteristic of cooperatives is equal voting rights. How does this impact the cooperative's environment?
Which factor is most indicative of the likely success of a community home care cooperative for the elderly?
Which factor is most indicative of the likely success of a community home care cooperative for the elderly?
Non-governmental organizations (NGOs) always aim to generate a profit for their shareholders.
Non-governmental organizations (NGOs) always aim to generate a profit for their shareholders.
Flashcards
Chain of Production
Chain of Production
Series of steps to transform raw materials into a finished product.
Entrepreneur
Entrepreneur
Someone willing to plan, organize, manage, and invest in a business, while taking on financial risks.
Visionary (in business)
Visionary (in business)
An entrepreneur with foresight, who anticipates market changes and drives organizational growth.
Lack of finance (business challenge)
Lack of finance (business challenge)
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Entrepreneur transforms idea
Entrepreneur transforms idea
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Opportunities for starting a Business (GET'M CUSH)
Opportunities for starting a Business (GET'M CUSH)
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Cooperative Success
Cooperative Success
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Cooperative Voting
Cooperative Voting
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Cooperative Independence
Cooperative Independence
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Cooperative Funding
Cooperative Funding
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Cooperative Finances
Cooperative Finances
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Cooperative Management
Cooperative Management
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Cooperative Decisions
Cooperative Decisions
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Non-profit social enterprise
Non-profit social enterprise
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Invention and Innovation
Invention and Innovation
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Profit as an Indicator
Profit as an Indicator
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Internal Source of Finance
Internal Source of Finance
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Protecting Shareholder Value
Protecting Shareholder Value
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Ethical Objectives
Ethical Objectives
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Business Ethics
Business Ethics
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Ethical Code (Code of Conduct)
Ethical Code (Code of Conduct)
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Corporate Social Responsibility (CSR)
Corporate Social Responsibility (CSR)
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Specialization Drawbacks?
Specialization Drawbacks?
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Partnership Continuity?
Partnership Continuity?
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Corporate Continuity
Corporate Continuity
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Specialize
Specialize
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Continuity
Continuity
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Partner leaves/dies?
Partner leaves/dies?
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Whats a shareholder?
Whats a shareholder?
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Shareholder actions'?
Shareholder actions'?
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Improved Corporate Image
Improved Corporate Image
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Increased Customer Loyalty
Increased Customer Loyalty
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Reduced Costs
Reduced Costs
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Higher Sales Revenue
Higher Sales Revenue
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Higher Staff Morale and Motivation
Higher Staff Morale and Motivation
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Compliance Costs
Compliance Costs
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Lower Profits
Lower Profits
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Stakeholder Conflict
Stakeholder Conflict
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Directors
Directors
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Director's Focus
Director's Focus
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Middle Management
Middle Management
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Middle Manager Task
Middle Manager Task
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Routine Tasks
Routine Tasks
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Junior Management
Junior Management
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Managers Goal
Managers Goal
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Middle Manager Accountability
Middle Manager Accountability
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Study Notes
Sectors of Industry Examples
- Banking, catering, education, insurance, healthcare, and medicine represent service sector industries.
- Information and communications technology (ICT), management and consultancy, and tertiary and higher education are also service sector examples.
Chain of Production
- The chain of production is a series of steps to transform raw materials into a finished, marketable product.
Entrepreneurship
- An entrepreneur is someone willing and able to plan, organize, manage, and invest in a business while taking financial risks.
- Entrepreneurs are often described as visionaries who transform ideas into businesses.
- A visionary entrepreneur possesses foresight and is the driving force behind an organization's growth and development.
- Visionaries can foresee market changes and trends or even set the trends themselves.
- Visionaries are instrumental in product development, acquisitions, and strategic partnerships.
Challenges for Starting a Business: Lack of Finance
- Many businesses need finance to purchase fixed assets like machinery and equipment.
Opportunities for Starting a Business: Growth
- Specializing in a niche like corporate law increases the client base, unlike trying to be equally effective in all areas like divorce and criminal law.
Continuity in Business
- Sole traders and partnerships face challenges in continuity.
- Limited companies have continuity because shareholders can sell their shares, transfer ownership, or pass them on to heirs, which makes long-term planning easier.
Cooperatives: More Likely to Succeed
- Cooperatives are more likely to succeed because all member shareholders help run the cooperative.
- They offer equal voting rights, fostering a harmonious work environment and motivated members.
- Cooperatives face limited finance sources, depending on member contributions.
- They may struggle to hire specialist managers due to financial constraints.
- Decision-making in cooperatives can be time-consuming due to members' rights to have a say.
- Disagreements can arise from differing social and commercial objectives among members.
- Often cooperatives receive government financial support, benefiting members and society.
Non-Profit Social Enterprises
- Non-profit social enterprises operate commercially but reinvest any profits or financial surplus into the organization.
- Non-governmental organizations (NGOs) are a type of non-profit social enterprise in the private sector.
- NGOs are typically voluntary, community-based organizations that aim to meet a need or provide a service without seeking profit.
- NGOs still require funding to operate and have the main goal to provide a service.
- Profit encourages invention and innovation as new technological ideas and processes that cut production costs lead to higher profits.
- It indicates growth (or decline), signaling owners and investors to shift from low to high-profitability activities.
- It serves as an internal finance source to fund business growth.
Protecting Shareholder Value
- Protecting shareholder value means ensuring a business's value stays the same or improves.
- It involves safeguarding the interests of a limited liability company's owners.
- Directors are responsible for protecting shareholder value by ensuring the company makes money and grows smartly.
- Shareholders rely on directors and company leaders since they don't run the company themselves.
- Directors must balance short-term profits (like dividends) with long-term value creation.
Ethical Objectives
- Ethical objectives are organizational goals based on moral guidelines that influence business decision-making.
- Businesses must operate in a socially acceptable and responsible way.
- This includes ensuring business activities don't harm the planet and improve the company's image.
- Business ethics refers to morally correct actions employed by organizations.
- An ethical business acts morally towards its workers, customers, shareholders, and the environment by ensuring employees get enough rest breaks.
- It also involves adopting green and renewable technologies.
- An ethical code (code of conduct) is a document detailing a company's rules and guidelines on staff behavior that all employees must follow.
Corporate Social Responsibility (CSR)
- Corporate social responsibility (CSR) means a business must act morally to its stakeholders and society.
- CSR can involve forming an ethical code of practice, a formal documented policy setting out how the business believes it should behave, so people know what is acceptable.
- It addresses how to respond to situations challenging integrity or social responsibility.
Advantages of CSR
- Improved corporate image helps enhance reputation.
- Increased customer loyalty is more likely from a business not acting immorally.
- Reduced costs can happen when being environmentally friendly reduces excess packaging.
- Higher sales revenue is possible as customers prefer ethically moral businesses.
- Increased staff morale and motivation as employees feel better working for a business that does the "right" things socially, which improves productivity.
Disadvantages of CSR
- Compliance costs for being socially responsible can be high such as producing organic agricultural products.
- Compliance costs can be high as well because of fair wages, exploitation is not possible.
- Lower profits result if compliance costs are high but profits are low.
- Stakeholder conflict arises because not all stakeholders want to adopt ethical objectives, especially if it affects profit maximization.
- Subjectivity exists because what is right or wrong is based on public opinion, which varies in different parts of the world.
- Improve customer relations to maintain and improve the company's competitiveness.
- Improve individual salaries and bonuses.
- Monitor and control day-to-day routine tasks.
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Description
Exploration of service sector industries with examples. Discussion of the chain of production. Explanation of entrepreneurship, focusing on the role and impact of visionary entrepreneurs in business.
