Revision of Topic One

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

(a)  

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.

(a)  

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.

(a)  

Goals that must be achieved in order to realise the stated aims of an organisation. Objectives must c (a)   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 (a)   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 (a)   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.

(a)