8TH FINALS

Question 1

What is business?

Answer 1

Combines the factors of production to make goods and services which satisfy people’s wants

Question 2

Define added value

Answer 2

The difference between the selling price and the cost of bought-in materials and components

Question 3

What is specialization?

Answer 3

Occurs when people and businesses concentrate on what they are best at

Question 4

What does scarcity refer to?

Answer 4

The lack of sufficient products to fulfil the total wants of the population

Question 5

What is the tertiary sector?

Answer 5

The sector of the industry that provides services to consumers and other sectors of industry

Question 6

Define mixed economy

Answer 6

Has both a private sector and a public (state) sector

Question 7

What is deindustrialization?

Answer 7

Occurs when there is a decline in the importance of the secondary manufacturing sector of industry in a country

Question 8

Who is an entrepreneur?

Answer 8

A person who organises, operates and takes the risk for a new business venture

Question 9

What is vertical integration?

Answer 9

When one business merges with or takes over another one in the same industry but at a different stage of production

Question 10

Define conglomerate integration (diversification)

Answer 10

When one business merges with or takes over a business in a completely different industry

Question 11

What is a sole trader?

Answer 11

A business owned by one person

Question 12

Define unlimited liability

Answer 12

The owners of a business can be held responsible for the debts of the business they own

Question 13

What are unincorporated businesses?

Answer 13

Businesses that do not have a separate legal identity, such as sole traders and partnerships

Question 14

What is a joint venture?

Answer 14

Where two or more businesses start a new project together, sharing capital, risks and profits

Question 15

Define business objectives

Answer 15

The aims or targets that a business works towards

Question 16

What is market share?

Answer 16

The percentage of total market sales held by one brand or business

Question 17

Who is a stakeholder?

Answer 17

Any person or group with a direct interest in the performance and activities of a business

Question 18

What is a bonus?

Answer 18

An additional amount of payment above basic pay as a reward for good work

Question 19

Define profit sharing

Answer 19

A system whereby a proportion of the company’s profits are paid out to employees

Question 20

What is job rotation?

Answer 20

Involves workers swapping around and doing each specific task for only a limited time and then changing around again

Question 21

What does job enrichment involve?

Answer 21

Looking at jobs and adding tasks that require more and/or responsibility

Question 22

What is promotion in the context of employment?

Answer 22

The advancement of an employee in an organisation, for example, to a higher job/managerial level

Question 23

Define organisational chart

Answer 23

A diagram that outlines the internal management structure

Question 24

What is the chain of command?

Answer 24

The structure in an organisation which allows instructions to be passed down from senior management to lower levels of management

Question 25

What is span of control?

Answer 25

The number of subordinates working directly under a manager

Question 26

Define delegation

Answer 26

Giving a subordinate the authority to perform particular tasks

Question 27

What is autocratic leadership?

Answer 27

Where the manager expects to be in charge of the business and to have their orders followed

Question 28

What is a trade union?

Answer 28

A group of employees who have joined together to ensure their interests are protected

Question 29

Define job specification

Answer 29

A document which outlines the requirements, qualifications, expertise, physical characteristics, etc., for a specified job

Question 30

What is job analysis?

Answer 30

Identifies and records the responsibilities and tasks relating to a job

Question 31

What is external recruitment?

Answer 31

When a vacancy is filled by someone who is not an existing employee and will be new to the business

Question 32

Define part-time employees

Answer 32

Employment often considered to be between 1 and 30-35 hours a week

Question 33

What is induction training?

Answer 33

An introduction given to a new employee, explaining the business's activities, customs and procedures and introducing them to their fellow workers

Question 34

What is off-the-job training?

Answer 34

Involves being trained away from the workplace, usually by specialist trainers

Question 35

What does dismissal mean?

Answer 35

When employment is ended against the will of the employee, usually for not working according to the employment contract

Question 36

Define redundancy

Answer 36

When the employee is no longer needed and so loses their job, not due to any aspect of their work being unsatisfactory

Question 37

What is internal communication?

Answer 37

Communication between members of the same organisation

Question 38

Define one-way communication

Answer 38

Involves a message which does not call for or require a response

Question 39

What is formal communication?

Answer 39

When messages are sent through established channels using professional language

Question 40

What are communication barriers?

Answer 40

Factors that stop the effective communication of messages