Business Management: Key terms Questions and Answers ( 100% pass)

Business Management: Key terms Questions and Answers ( 100% pass) Business life cycle - ANS- Businesses grow and change and so have what is termed a life cycle- from establishment to growth and maturity. Management - ANS- The people who run the business. Liquidation - ANS- 3. When the business or a firm is terminated or bankrupt, its assets are sold and the proceeds pay creditors. Any leftovers are distributed to shareholders. Ethics - ANS- 4. Set of standards that all can agree on and follow to regulate behaviour Business environment - ANS- 5. Internal and external factors that affect how the company functions including employees, customers, management, supply and demand and business regulations. Stakeholders - ANS- 6. Anyone who has an interest in a business. Break-even point - ANS- 7. The amount sold where total revenue from sales equals total cost of production. Organisation chart - ANS- 8. A diagram that sets out the work, management and structure in the business. Management theories - ANS- 9. Theories or ideas on how to best supervise employees and business, and how managers should undertake their responsibilities. Autocratic leader - ANS- 10. Leader who rules with an iron fist; someone with behaviour of a dictator. Profits - ANS- 11. A financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something. Behavioural theories - ANS- 12. The belief that a leaders rate of success is based on the way in which they behave. Frontline managers - ANS- 13. Managers who are responsible for a work group to a higher level of management. Privatisation - ANS- 14. The transfer of ownership of property or businesses from a government to a privately owned entity Democratic leaders - ANS- 15. Leader sharing the decision making abilities with group members by promoting the interests of the group members and by practicing social equality. Bankruptcy - ANS- 16. Legal status of a person or other entity that cannot repay the debts it owns to creditors. Limited liability - ANS- 17. A type of liability that does not exceed the amount invested in a partnership or limited liability company. Fixed cost - ANS- 18. Costs that do not change as a function of the activity of a business, within the relevant period. Tariffs - ANS- 19. A tax imposed on imported goods and services Market segmentation - ANS- 20. Process of dividing an entire market into different customer segments