LAP-EC-071: SECTION A and B

what is a business?

a business is an organized effort to produce and/or distribute goods and services.

explain what a business is.

a business is an organized effort to produce and/or distribute goods and services. businesses can operate for profit, or they can be nonprofit entities.

explain the difference between "for- profit" and "nonprofit" businesses.

a business that operates for profit makes money to fulfill financial goals, while a nonprofit business makes money to fulfill a specific mission or undertaking.

explain what a for-profit business is.

a business that operates for profit makes money to fulfill financial goals.

explain what a nonprofit business is.

a nonprofit business makes money to fulfill a specific mission or undertaking.

give an example of how each of the following primary business activities relates to other business activities: a. financial analysis b. human resources management c. information management d. marketing e. operations f. strategic management

a. financial analysis: financial analysis determines the best way to bring in funds and it determines if the new product is a "winner," so that it will be able to repay the entire loan in a short period of time. through its human resources professionals, the company hires the most qualified research-and-development experts it can find. b. human resources: in human resources management, the company must scale back the number of employees it hires to perform the product's research and development. in marketing, the company must limit the number of advertisements it places to introduce the product. c. information management: improving the information management system means the entire plan changes (if even slightly), and that puts a strain on the financing available for the project—causing every business activity to adjust which relates back to financial analysis because it is about funds and how to get those funds. and if the information management is altered it could affect the financial analysis. d. marketing: marketing, the company must limit the number of advertisements it places to introduce the product. in strategic management, the company must align the change with its long term goals. e. operation: in operations, the company must make sure it has the correct tools and processes in place. and, in financial analysis, the company must determine if there is a way to avoid similar financing shortages in the future (which if they don't have the right equipment and tools the financial analysis will have to figure out a way to avoid a shortage) f. strategic management: in strategic management, the company must align the change with its long-term goals. In operations, the company must make sure it has the correct tools and processes in place. And, in financial analysis, the company must determine if there is a way to avoid similar financing shortages in the future.

describe each of the following primary business activities: a. financial analysis b. human resources management c. information management d. marketing e. operations f. strategic management

a. financial analysis: the process of plan-ning, maintaining, monitoring, controlling, and reporting the use of financial resources b. human resources management: the process of planning, staffing, leading, and organizing employees c. information management: the process of accessing, processing, maintaining, evaluating, and disseminating business knowledge, facts, or data d. marketing: the process of creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large e. opertations: the day-to-day activities required for continued business functioning f. strategic management: the process of planning, controlling, and organizing an organization or department

TeJuan's Fishing Shack demonstrates effective information management by...

accessing a list of fishing equipment appropriate for a particular customer.

Janelle's Creative Supplies is opening an additional location on the other side of town. to successfully operate the new location, Janelle primarily needs

additional employees

describe how business change affects the primary business activities.

business changes, outsourcing, and virtual services do not diminish the need for primary business activities. they simply require the business to adjust the activities accordingly.

for the long-term success of the business, Stacey's Coffee House has decided to add a self-serve laundromat. which of the following behaviors describes the business activity that Stacey's Coffee House was likely engaged in before making this decision...

determining what will put it in reach of its goals

when Caring Companions and Smiling Pets merged two years ago, what was the most likely effect on the primary business activities of both companies?

each primary business activity combined with the matching activity of the other firm.

explain how external business changes affect the company's primary business activities.

external business changes affect the primary business activities; consider the effects of a merger between two large businesses. the goals of the two businesses change as the two companies become one. this means that the strategic management of the two businesses combines.

describe the primary business activity of financial analysis.

financial analysis is the process of plan-ning, maintaining, monitoring, controlling, and reporting the use of financial resources.

an example of performing business activities in an "out of the ordinary" way is when a business...

hires an outside firm to perform its marketing.

describe the primary business activity of human resources management.

human resources management is the process of planning, staffing, leading, and organizing employees.

explain how internal business changes affect the company's primary business activities.

if, during strategic management, a business decides that internal structural changes will help it be more effective in reaching its goals, human resources management and operations will be affected dramatically. new job descriptions, new tasks, and possibly new processes will be involved. new methods of managing information may be required. financial analysis will help the business choose the appropriate financial means for making the change. and, through marketing, the business will let the public know that the company is improving for the benefit of its customers.

describe the primary business activity of information management.

information management is the process of accessing, processing, maintaining, evaluating, and disseminating business knowledge, facts, or data.

making sure that a business has enough of a product in stock without having too much on hand is the goal of...

inventory management

financial analysis occurs when a business...

keeps accurate expense records.

which of the following represents a primary business activity...

marketing

describe the primary business activity of marketing.

marketing is the process of creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

a business that exists to fulfill a specific mission or undertaking is called a __________ business.

nonprofit

within a local pizza shop, financial analysis is most likely used to...

obtain funding for supplies.

describe the significance of virtual services in relation to the primary business activities.

offering a virtual service can affect business activities in a number of ways. companies may increase cash flow when they don't have to pay the overhead costs of offering their products in a store. in addition, they may not need to hire as many employees or make as many shipments, reducing the load of human resources management and operations. the role of information management, however, may be heightened because of so many virtual transactions.

which of the following demonstrates the interrelationship among primary business activities...

one business activity changes, so the others must adjust.

describe the primary business activity of operations.

operations are the day-to-day activities required for continued business functioning.

a business can be described as a(n)...

organized effort to produce goods and services.

describe outsourcing in relation to the primary business activities.

outsourcing involves using outside organizations or consultants to perform one or more of the primary business activities. when a business needs human resources management, for example, it can hire an outside firm to perform the activity instead of hiring in-house em-ployees to do the job.

which of the following behaviors demonstrates the primary business activity of strategic management...

planning and organizing for the future

every business must accomplish which of the following...

produce or provide goods/services

which of the following behaviors best describes the primary business activity of operations...

producing goods and services

Franco's Bread Shop is introducing a new type of sandwich bread to the community this week. which of the following describes the business activity that the bread shop will likely partake in before the release:

promoting the new bread through advertising

which of the following activities demonstrates information management...

storing and retrieving information

describe the primary business activity of strategic management.

strategic management is the process of planning, controlling, and organizing an organization or department.

which of the following activities demonstrates the primary business activity of marketing...

the business meets customers' needs by offering appropriate products.

which of the following activities demonstrates human resources management...

the business takes care of the responsibilities associated with having employees.

describe the interrelationship of the primary business activities.

the primary business activities are interrelated, meaning they depend upon each other and work together.

discuss the significance of the primary business activities.

these primary business activities (actions taken by businesses to generate profits or to reach financial goals) are the main things busi-nesses do to keep production going.

when the Pretty Pictures framing business underwent internal restructuring last year, how would its primary business activities have reacted?

they adjusted according to the internal changes.

name five things a business needs to accomplish.

they must obtain necessary resources, produce/provide goods and services, market/sell those goods and services, store/retrieve information effectively, and plan for the future.