Flashcards on Business Environments, Sectors, and Ownership
Business Environments, Sectors & Ownership: A Student Guide
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Foundations of Business & Environment: Business & External Environment
105 cards
Card 1
Question: What are three overall characteristics of the business environment mentioned in the content?
Answer: It is interdependent/interrelated, uncertain/unstable (dynamic), and complex (difficult to determine risk factors).
Card 2
Question: How can changes in the business environment affect businesses?
Answer: Changes can affect different businesses differently (positive for one, negative for another) and can have short-term and long-term effects.
Card 3
Question: What must businesses be prepared to do because the business environment is dynamic and unstable?
Answer: They must be both proactive and reactive and adapt to changes.
Card 4
Question: Give an example from the content of an external factor that can have a huge impact on a business.
Answer: The current global recession.
Card 5
Question: What is meant by the micro environment in the content?
Answer: The micro environment consists of internal factors the business can control using internal control systems.
Card 6
Question: What are the aims of internal control systems over the micro environment?
Answer: Enable management to meet business objectives, ensure reliable financial statements, and ensure compliance with laws and regulations.
Card 7
Question: List five controllable variables within the micro environment.
Answer: Mission and goals, business structure, organisation and use of factors of production, organisation of the business functions, and management style.
Card 8
Question: Name three other controllable variables in the micro environment (besides the five previously listed).
Answer: Management of employees, choice of business ethics, type of ownership, implementation of business policies.
Card 9
Question: What are key aspects of internal control mentioned in the content?
Answer: Controlling the philosophy and values, creating efficient information and communication systems, monitoring performance, assessing risk, and controlli
Card 10
Question: Why must a business be aware of opportunities and threats in the market environment?
Answer: Because they affect the business's success or failure and the business has limited control over this environment.