1.1 The fundamentals and principles of business 1.14-1.17

What is the function of management in controlling factors of production and business processes within available resources?

• Maximizing profit

• Minimizing costs

• Contributing to the aims and objectives of the business

• Expanding market share

Which of the following is included in financial prudence in business management?

• Excessive spending

• Budget setting, monitoring and control

• Ignoring cash flow

• Inefficient procurement practices

What does market conduct in business management entail?

• Setting high prices

• Ignoring competitors

• Marketing strategies

• Reducing product quality

In terms of customer interests, what are businesses expected to focus on?

• High prices

• Poor quality products

• Excellent customer service

• Unreliable products

Why is it important to have trained and competent staff in a business?

• To increase costs

• To reduce efficiency

• To maximize profit

• To ensure skill, care and diligence

How should businesses respond to regulators according to the principles of business management?

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What should a business do to comply with regulations?

• Provide false information

• Change practices and policies to comply

• Ignore regulators

• Contest all regulations

What are some private business aims and objectives?

• Increase service provision

• Generate surpluses

• Compete with rivals

• Raise funds

What are some public business aims and objectives?

• Profit maximization

• Value for money

• Meeting government standards

What is a key aim for not-for-profit businesses?

• Maximize shareholder value

• Invest in social, environmental or cultural initiatives

• Generate huge profits

• Eliminate competition