BUISNESS Flashcards
MEMORY (37 cards)
Q: What are the characteristics of critical path analysis in transformation processes?
It is a scheduling tool that helps identify which parts of the repair process can be completed simultaneously to reduce overall repair time.
Q: What is a disadvantage of leasing property?
The business does not own the property at the end of the lease period, and maintenance is typically not covered.
What are the advantages of using a mortgage as a long-term finance source?
Ownership of the property once repaid and potential security for the loan.
How can a business improve accounts receivable turnover?
By using debt collection agencies, factoring, or offering shorter interest-free periods to collect debts faster.
Why is liquidity important in financial management?
It indicates the ability to pay current debts, helping maintain a good credit rating and avoid additional fees.
How does a situational analysis change when expanding into Europe?
Strengths and weaknesses shift, e.g., losing loyal customers and needing to train new staff, while opportunities and threats may also change.
How can employee development improve workplace culture?
By offering training in areas like team building and communication, which can boost morale and reduce turnover.
Why are monitoring and controlling important in marketing?
They help compare actual results with planned results, allowing necessary adjustments to achieve marketing objectives.
How does an autocratic leadership style affect employee performance?
It may intimidate employees, leading to high stress and decreased productivity.
What is the strategic role of human resources in a retail store?
To acquire, develop, and maintain staff, creating a positive business culture that aligns with business goals.
What is the purpose of quality assurance?
Ensuring that repairs meet established standards, such as Australian quality assurance standards, to differentiate from competitors.
What is quality control in the context of a repair business?
Checking quality at various points in the repair process to ensure repairs meet customer expectations.
How does process layout benefit a business?
: It organises equipment and materials efficiently, speeding up the process and reducing costs.
What is a key performance objective for a burger business, and why is it important?
Dependability is crucial because customers expect their burgers to be served consistently in terms of time, size, temperature, and taste. This builds trust and repeat business.
Explain the advantages of the Just-in-Time (JIT) inventory management strategy.
JIT allows businesses to order and receive fresh produce as needed, minimizing waste and reducing storage costs. This approach optimizes inventory levels and can improve cash flow.
What are the inefficiencies associated with a narrow kitchen layout in a restaurant?
: A narrow kitchen layout forces employees to navigate back and forth between workstations, increasing the risk of accidents and wasting time. This can lead to slower service and reduced customer satisfaction.
How does the layout of a restaurant influence its profitability?
A layout with more tables maximizes seating capacity, enabling the business to serve more customers at once, thus increasing revenue potential compared to a layout with fewer tables.
What are the potential effects of an increase in the minimum wage on a business?
Increased minimum wage can lead to higher operational costs for the business. This may force the business to raise prices for consumers or cut back on expenses, potentially impacting profitability.
What are minimum employment standards, and why are they significant?
Minimum employment standards consist of legally mandated rights such as annual leave and paid public holidays. They protect employees and ensure fair treatment in the workplace, fostering a more positive work environment.
How do performance appraisals benefit employers?
Performance appraisals provide valuable feedback to employees regarding their strengths and areas for improvement. They help identify training needs, can motivate high performance through rewards, and support overall workforce development.
What is the purpose of the induction process for new employees?
The induction process familiarizes new employees with the workplace culture, policies, and procedures. This helps them integrate into the team more quickly, enhancing their competence and fostering a positive attitude towards their roles.
How is the efficiency of a business calculated, and what does it indicate?
Efficiency is calculated as Total Expenses ÷ Total Sales. A lower efficiency percentage indicates that the business is better at managing its resources and minimizing costs relative to sales, contributing to higher profitability.
What relationship exists between the expense ratio and a business’s efficiency?
A lower expense ratio (e.g., $0.40 in expenses for every $1 of sales) indicates higher efficiency. If a business reduces its indirect costs while maintaining or increasing sales, it demonstrates effective resource utilization and can improve profitability.
Why is understanding gearing important for lenders assessing a business?
Gearing reflects a business’s capacity to meet long-term financial obligations. High gearing might indicate higher risk to lenders, while a manageable level suggests the business can comfortably meet loan repayments.
