unused service that cannot be stored for future use

Inseparability refers to

the fact that production and consumption occur simultaneously

What does equity finance refer to?

Money obtained from retained earnings or external sale of shares

Working capital is...

The finance needed for the day-to-day running of the organisation.

Non-Government Organisations often promote...

social, environment or political change

What is limited liability?

Owners only lose what they have invested

Which of the following is an example of an agency problem?

The directors might award themselves excessive salaries.

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AAT L3 Business awareness Chapter 1

20 termsStudBud Administration80 plays

A recap of key terms covered in Chapter 1 Business awareness

Flashcards20 cardsFPractice quizPHost liveL

Questions 20

Answers

1
Organisations are made up of a group of people working together, to achieve set goals is a feature of ALL organisations
True
False
2
Public Sector Funding...
Comes from Tax Payers
All of these
Comes from Charities
Comes from Businesses
3
Organisations enable people to
Pool resources
Share skills and knowledge
All of these
Specialise
4
Define Perishability
a condition of being subject to change.
unused service that cannot be stored for future use
Customer service
a state of being abstracted.
5
Inseparability refers to
the consumption of a product
hospitality products are tangible
the fact that production and consumption occur simultaneously
the fact that production and consumption occur independently
6
Heterogeneity refers to
Quality
Assurance
Relationships
Unused services
7
No transfer of ownership is concerned with the purchase of a service
True
False
8
A partnership is made up of two people
False
True
9
What does equity finance refer to?
Money obtained from retained earnings or external sale of shares
Monetary or financial assistance from the government
Money obtained through loans
Money obtained from a financial intermediary such as a bank
10
A mission and vision statement is a common feature of organisations
True
False
11
Working capital is...
The finance available to pay of debts of the organisation.
The finance available for reinvestment in the organisation.
The finance needed for the day-to-day running of the organisation.
The finance available for the long-term running of the organisation.
12
Which of these cannot be described as an organisation
A school
Football team
A sole trader
Accountacy firm
13
Charities and co operatives are government funded
True
False
14
Agriculture is part of the ____ sector
Secondary
Tertiary
Primary
Quarternary
15
Non-Government Organisations often promote...
Generally ending poverty
Working with governments
Development Goals
social, environment or political change
16
Which one of these is NOT an aspect in the definition of an organisation
Social arrangments
Controlled performance
Collective goals
Objective creation
17
Can not-for-profit organisations make a profit?
True
False
18
What is limited liability?
Owners only lose what they have invested
Owners will not lose anything
Onwers will not make money
Owners lose everything
19
Which of the following is an example of an agency problem?
The directors might award themselves excessive salaries.
Interest rates may increase the cost of borrowing.
The share price may decline because of poor sales.
It might be difficult to recruit capable directors.
20
Partnerships have unlimited liability...
True
False

AAT L3 Business awareness Chapter 1 Flashcards | StudBud