Revision of Topic One

An entrepreneur is a person who starts their own business – accepting r...s and hoping for a reward.

What is the tertiary industry?

• Working with the extraction of raw materials

• Making things by manufacturing and construction

• ICT and Research Development

• Providing a service

The transformation process describes what happens inside the business. This is were v...e is added to inputs to create outputs.

Mission statements are different than objectives. A mission statement is a qualitative statement of an organisation’s aims that uses language intended to motivate employees and convince stakeholders of the firms sincerity and commitment. While objectives are specific g...s that provide a path for achieving the vision.

Goals that must be achieved in order to realise the stated aims of an organisation. Objectives must c.....e down the organisation.

Some firms set objectives that involve achieving a minimum level of profit, allowing the business and its managers to focus on other o........s

When can survival become a key issue, even for large businesses?

• Times of crisis, such as during a hostile takeover bid

• When there is more spending in the economy

• Periods of recession or intense competition

• When a business is launching a new product

To survive a business may have to take actions such as lowering p....s that reduce profits but enable it to continue to survive.

A business may be profitable but if they fail to correctly manage cash flow the business can go bust!

• True

• False

A c..h c...e is the time that elapses between the outflow of cash to pay for the resources needed to produce a product and the receipt of cash following the sale of the product.