Business Awareness Questions

SOP means Standard Operating Procedure.

A standard operating procedure is a set of step-by-step instructions compiled by an organization to help workers carry out complex routine operations. SOPs aim to achieve efficiency, quality output and uniformity of performance, while reducing miscommunication and failure to comply with industry regulations.

Every SOP must have the signature of the approving authority within your chain of command before it is a legal document.

The price elasticity of supply measures how the responsiveness of the quantity demanded of a commodity to changes it its prices; defined as the percentage change in quantity demanded divided by the percentage change in price.

A business organized as a corporation is owned by its stockholders.

Debts owed by a business are referred to as Liabilities. Liabilities include all loans, outstanding expenses, mortgages, creditors, etc...

Cottage industry is a manufacturing activity of people operated at home. The handcrafts which were sold in the society are examples of cottage industy products. It is a small scale industry in which the labor force is mostly family members or individuals.