Name: Mohamed Abdullahi KhalafAdm. No. Cefored BA / 098/ 09Module: Introduction To Business Administration

Date: 14/11/2009

Lesson TwoReview Questions

Ques. (1) .Describe briefly the information before deciding whether or not to become involved in international business.

Answer:

Managers and chief executives have to consider these key areas when deciding whether to be involved in international business or not:

a. The total populations of the countries they are looking forward to do business in.

b. The demography structure and the rate of inflation.

c. Assessment of risk involved in doing business abroad.

d. The availability of finance needed.

e. Stability of government and local currency in the country.

f. Regulations of foreign investments and transfer of profit to main country, legal and political constrains.

g. Taxes, government incentives to exporters.

h. Availability of labour, row materials, and existence of potential market growth.

Ques. (2) .Appreciate why managers should be concerned about the relationship between an enterprise and its environment.

Answer:

Climate change and global worming is a crucial business issue that many companies are ill-prepared to address. All the processes that companies undertake in the provision of products and services – such as materials and parts procurements and the use of recourses like electricity water and gas- exert an environmental effect at one kind

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or another. This led to current growing interest in environmental issues that companies must address. A company in modern business must consider the consumers pressure groups, legislations, ethical considerations, and potential cost savings.

Managers in today’s business must come up with ways in which all company products are developed to produce the minimum environmental damage. And they have to consider the impact of their plants on the quality of life in their areas.

Ques. (3) .Explain the nature and features of small business management.

Answer:

A small business is a business that is privately owned and operated, with a small number of employees and relatively low volume of sales. The legal definition of (small) often varies by country and industry, but is generally under 100 employees in the United States and under 50 employees in the European Union. In addition to number of employees, other methods used to classify small companies include annual sales, value of assets, market share, and net profit.

A small business can take thousands of features; from kiosks to small factories, that sells goods, from private schools and clinics to hotels that sells services.

Small businesses have the following advantages:

a. The owner is independent and has a freedom to act.b. They can be easily set up and dissolved.c. The profits do not have to be shared.d. There are few overhead costs.

Small businesses have also some disadvantages including:

e. Poor management.f. Finance may be easily available so that everyone can set up a

similar one.g. They are usually not dominant in their field of operation.

Mohamed Abdullahi Khalaf

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Galkaio – Somalia

Tell: 00 252 90 756434

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