Ib Business And Management Key Terms Ac

Topics: Hotel, Management, Marketing Pages: 12 (5822 words) Published: December 4, 2014


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 business on his or her own although s/he may or may not employ other people for help in running the business. Roger Williams initially operated The Imperial as a sole trader.

8. The view of a company held by its customers, employees and other major stakeholders. The Imperial enjoyed a very positive corporate image initially.

9. Individuals or firms who have put money in the business expecting it to generate a return in the future. The five different owners that The Imperial had from 1959 to 1989 were investors in the business. Global Properties is the investment group that bought The Imperial in 1989.

10. An incorporated business that is owned by shareholders with limited liability but whose shares cannot be offered for sale to the public. The subsidiary set up by GP was incorporated as a private limited company.

11. The trend towards free international trade and free movement of capital between countries resulting in the integration of economic, social, technical and cultural issues of the world's economies. It is largely a consequence of expansion of multinational corporations around the world. GP, an international investment group, with investors from Japan, South Korea and the USA, symbolises globalisation.

12. Shareholders, also known as stockholders, are people who own shares in a private or a public limited company. GP's shareholders were from the United States, Japan and South Korea.

13. People responsible for the day-to-day running of the business or a department within the business. Managers are generally accountable to Directors and responsible for the staff teams they supervise. Martin Kimathi was appointed the Hotel Manager at The Imperial. Susan Chapman is the Head of Housekeeping at the hotel.

14. The surplus left after all costs are deducted from sales revenue. GP expected the Hotel Manager at The Imperial to generate profits for the investment group.

15. The share of the net profits that a company...
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