Exam (elaborations)
UNIT 1 THE BUSINESS ENVIRONMENT WITH ANSWERS
- Course
- ACCOUNTING
- Institution
- ACCOUNTING
UNIT 1 THE BUSINESS ENVIRONMENT WITH ANSWERS
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UNIT 1 THE BUSINESS ENVIRONMENTWITH ANSWERS
BUSINESS ACTIVITIES - CORRECT ANSWER-Tasks
completed by a business to achieve its objectives, e.g. buying,
selling and producing products or services.
RETAIL CUSTOMERS - CORRECT ANSWER-Customers who
buy finished products, e.g. frozen peas from a supermarket.
BUSINESS CUSTOMERS - CORRECT ANSWER-Businesses
that purchase products or services from another business.
UNLIMITED LIABILITY - CORRECT ANSWER-When the
owners of a business are personally liable for all debts incurred
by the business if the business itself does not have the funds to
repay them.
LIMITED LIABILITY - CORRECT ANSWER-When the owners
of a business are liable for the debts incurred by the business
only to the value of their investment in the business.
DISECONOMIES OF SCALES - CORRECT ANSWER-When a
business becomes too large, the cost per unit may increase
and the business may become more inefficient, e.g.
communication becomes slower as more employees join the
hierarchy.
BUSINESS AIMS - CORRECT ANSWER-A summary of what
the business wants to achieve in the future.
RECESSION - CORRECT ANSWER-A period of economic
decline where demand and output fall.
, ECONOMIES OF SCALE - CORRECT ANSWER-Cost
advantages gained when the size of a business increases,
e.g.suppliers may offer discounts to those placing larger orders.
UNIQUE SELLING POINT (USP) - CORRECT ANSWER-A
specific factor that makes a business stand out from its
competitors, e.g. excellent customer service.
FUNCTIONAL AREA - CORRECT ANSWER-A division of a
business where employees have similar roles, skills and
expertise, e.g. marketing function, human resource function.
STATEMENT OF FINANCIAL POSITION - CORRECT
ANSWER-A summary statement on a particular date that
shows a business's assets, liabilities and owner's equity.
INCOME STATEMENT - CORRECT ANSWER-A financial
statement that shows the revenue and expenses a business
has received and paid over a period of time; the statement will
show the profit the business has made during this time.
CASH FLOW FORECASTING - CORRECT ANSWER-
Estimating the expected cash inflows and outflows for a period
of time in the future to identify likely surpluses or shortages.
PRICING STRATEGY - CORRECT ANSWER-The method
used to determine the price of a product/service, taking into
consideration the market, competitors pricing, customer
incomes, etc.
DISCIPLINARY PROCEDURE - CORRECT ANSWER-A
specified process for dealing with alleged employee
misconduct, e.g. poor performance.
GRIEVANCE PROCEDURE - CORRECT ANSWER-A
specified process for dealing with a complaint made by an
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