Managing a business
What do managers do?
All organizations have managers. They can come by the name of director, headmaster, etc.
but they all perform similar tasks. These tasks are:
Planning for the future involves setting goals for a business.
What are accounts an why are they necessary?
Accounts are financial records of a firm's transactions that is kept up to date by
the accountants, who are qualified professionals responsible for keeping accurate accounts
and producing th
Business costs and revenue
All business activity involves some kind of cost. Managers need to think about the because:
Whether costs are lower than revenues or not. Whether a business will make a profit or
To compare costs at different
Financing business activity
Why do businesses need finance?
Businesses need finance, or money, to pay for their overhead costs as well as their day to day
and variable expenses. Here are three situations when businesses need finance the most:
Starting a b
Government and economic influences on business
The impact of business activity on society
All business activity has benefits and undesirable effects on society. These reasons are why
governments want to have some control over business activity:
The purpose of Business Activity
The economics problem: needs and wants.
Basically, all humans have needs and wants. Needs are things we can't live without, while
wants are simply our desires that we can live without. We all have unlimited wants, which is
Types of business activity
Levels of economic activity
In order for products to be made and sold to the people, it must undergo 3 different production
processes. Each process is done by a different business sector and they are:
Primary sector: The natural
What is organisational structure?
Organisational structure refers to the levels of management and division of responsibilities
within a business, which could be presented in an organisational chart.
For simpler businesses in which
Forms of business organisation
Almost every country consists of two business sectors, the private sector and the public sector.
Private sector businesses are operated and run by individuals, while public sector businesses
are operated by the government. T
Other influences on business
External constraints and constraints on business activity
Businesses cannot survive by neglecting the "real world", which includes influencesthat forces
a business to make certain decisions or constraints that limits or contro
Cash flow planning
What is meant by cash flow?
Cash is a liquid asset, meaning that i can be spent on goods and services any time. Many
business experience cash flow problems, meaning that they do not have enough cash to do
what they want to do. Cash flow