Ib Business And Management Key Terms Ac
1. Businesses operating in the primary sector are involved with the extraction, harvesting and conversion of natural resources, e.g. agriculture, fishing, mining and oil extraction. Roger Williams made a large fortune in this sector before establishing The Imperial.
2. The chance for a business of expanding into a new product and/or market. Roger Williams perceived the hotel business as under provided and hence saw a market opportunity in founding a new hotel, The Imperial.
3. A growth strategy where a business spreads its risks by expanding into new products and markets, away from its traditional business. Roger Williams' founding of The Imperial represented diversification away from his existing investments in the primary sector. Implementing Option 3 would also allow The Imperial to diversify by having a direct stake in the safaris industry.
4. Shares held in other businesses are called investments on the balance sheet. Investments could also be medium to long-term financial assets that a business might hold which generate a short-term income for the business such as dividend or interest. Roger Williams' large fortune from being in the primary sector of British East Africa would have been be tied up in investments mostly in the primary sector itself. Global Properties invested in The Imperial by purchasing the hotel in 1989.
5. The movement of cash into (mostly from income and capital injections) and out of (mostly purchases and expenses) a business. The Imperial was facing cash flow problems in its initial years due to the cash outflows being greater than the cash flowing into the business.
6. The monitoring of the liquid assets of a business to ensure that it can always pay its bills and other current liabilities. Part of the financial problems faced by The Imperial in its initial years related to liquidity management. Seasonality in the hotel industry also causes liquidity problems for The Imperial.
7. An individual owning and operating a
2. The chance for a business of expanding into a new product and/or market. Roger Williams perceived the hotel business as under provided and hence saw a market opportunity in founding a new hotel, The Imperial.
3. A growth strategy where a business spreads its risks by expanding into new products and markets, away from its traditional business. Roger Williams' founding of The Imperial represented diversification away from his existing investments in the primary sector. Implementing Option 3 would also allow The Imperial to diversify by having a direct stake in the safaris industry.
4. Shares held in other businesses are called investments on the balance sheet. Investments could also be medium to long-term financial assets that a business might hold which generate a short-term income for the business such as dividend or interest. Roger Williams' large fortune from being in the primary sector of British East Africa would have been be tied up in investments mostly in the primary sector itself. Global Properties invested in The Imperial by purchasing the hotel in 1989.
5. The movement of cash into (mostly from income and capital injections) and out of (mostly purchases and expenses) a business. The Imperial was facing cash flow problems in its initial years due to the cash outflows being greater than the cash flowing into the business.
6. The monitoring of the liquid assets of a business to ensure that it can always pay its bills and other current liabilities. Part of the financial problems faced by The Imperial in its initial years related to liquidity management. Seasonality in the hotel industry also causes liquidity problems for The Imperial.
7. An individual owning and operating a