Buisness Mock November Flashcards

Question

Economies of scale

Answer 1

Scale of production increases the cost of producing each item decreases

Answer 2

Technical – production methods for large volumes are more efficient Managerial – employment managers with specialist skills to manage specific department they oversee plans and strategies and help Work be done more efficiently and quicker Purchasing – economies of scale to do a discount big businesses can negotiate discount when buying suppliers and large quantities Marketing – large output can spread the cost of marketing over more units so they can afford more effective forms of advertising

Answer 3

Make a whole industry or area more efficient When industries are connected in a small geographic area, having a large number of supplies to choose from economy of scale Locating their lots of supplies firms can easily negotiate with arrange your supplies which can increase quality and reduce prices Good skilled local labour supply makes industry more efficient

Answer 4

Uses more machinery than relative workers

Answer 5

Cheaper a manual labour in long-term Machinery is often precise than human workers Can work 24/7? Easier to manage than people

Answer 6

High set up costs Only suited to one task which makes them inflexible If she breaks down, it can lead long delays Fear of being replaced by machine can cause workers motivation to decrease

Answer 7

More workers and less machinery

Answer 8

People are flexible and can be retrained Cheaper for small scale production Also cheaper while low-cost labourers available such as China and India Workers can solve any problems that arise during production and can suggest ways to improve quality

Answer 9

Harder to manage people in the machines People can be unreliable they can get sick People can’t work without breaks or holidays Wage increases mean the cost of labour can increase overtime

Answer 10

Financial goals that a business wants to achieve set by financial managers and will help the business to achieve its corporate objectives must be consistent with the functional objectives improve coordination between thieves act as focus for decision-making

Answer 11

Revenue Cost minimisation Profit maximisation Improve cash flow

Answer 12

Economy Competitors shareholders Availability finance Environmental/ethical influences

Answer 13

Overall objective of the business Status of business Of the areas of business

Answer 14

Level of sales the business needs to cover his cost Costs = revenue

Answer 15

Amount between actual output and breakeven

Answer 16

It seems variable costs always rise steadily a business can get discount for buying in bulk sometimes Only for one product but businesses sell lots of different product products If data is wrong, then results will be wrong Assume the business sales all the products without any wastage Only tells you how many units you need to sell to break even not how many you actually gonna sell

Answer 17

Easy to do if you can plot figures on graph and as quick Lets businesses full forecast variations and sales will affect costs revenue profit and how price and cost will affect how much they need to sell Help persuade bank to give him a loan Decide whether or not new products are launched or not

Answer 18

Measures proportion of staff who leave each year Number of staff leaving/average number of staff employed X 100 Higher the figure the large of the proportion of workers leaving

Answer 19

Changes in regional unemployment levels Growth of other local firms using staff with similar skills

Answer 20

Poor motivation of staff Low wages Lack of opportunities for promotion Less responsibility

Answer 21

Constant stream of new ideas for a new staff Finn can recruit staff I’ve already been trained by competitors If sales full phone can reduce workforce through natural wasted rather than cost redundancy Enthusiasm, new staff influences other workers

Answer 22

Lack of loyal and experienced staff who know the business Firm loser staff, it has trained often to direct competitors Training costs money and productivity drops while new staff get trained Recruitment costs are high

Answer 23

Removing parts of the hierarchy creates a flatter structure with wider span of control Can help lower costs by reducing salaries But may cost business money in short time as trading stuff need to be retrained in new roles

Answer 24

Not responsible for many people

Answer 25

Where can I was in patterns are adapt suit employees? And attractive prospective highly skilled workers

Answer 26

Flexi time – employees work full-time, but the side went to Work Compressed hours Annual hours Job sharing Home working

Answer 27

Improve motivation so productivity improves Help employees with children Suits families, disabled workers and those who live remote places

Answer 28

Impractical for business that needed to solve the public during normal work hours Homework workers can be easily distracted at home Job Sharon Conley to conversion over responsibilities and unequal workload

Answer 29

Tool for comparing the level risk involves with the different strategies it helps manager to decide on direction for strategic growth

Answer 30

Doesn’t just layout potential strategies for growth also force his managers to think about expected risks of moving in certain directions

Answer 31

It fails to show that market development and diversification strategies also tend to require significant change in day-to-day workings

Answer 32

Market penetration Market development or extension

Answer 33

Product development Diversification

Answer 34

Arises when a business produces multiple products instead of specialising in one it’s cheaper for one business to produce many products then to produce only one product Basically more varieties cheaper Existing businesses can benefit from brand loyalty and allows businesses to charge low prices due to lower unit costs which gives a competitive advantage due to being more efficient

Answer 35

A business grows and increase itself volume it will begin to produce more products. Workers will get more experience and more efficient and making products which will cause the cost per unit to decrease Efficiency increases of total units produced increases so costs per unit decreases

Answer 36

The concept value performance of two companies would be greater than for some of the individual parts(stronger together) Which can lead to increase revenues combined talent combined technology and cost reduction

Answer 37

Strength Weaknesses Opportunities Threats

Answer 38

Strengths and weaknesses are internal Opportunities and threats are external

Answer 39

Useful tool in developing strategy for more on strategic planning considered the businesses, individual circumstances and has done in factual and objective way It could help build businesses strengths and converting weaknesses into strengths and managing threats Can be easily redone to take an account changing conditions so it can adapt strategy using this analysis

Answer 40

Let the business know where it has a competitive advantage over its rivals the business can change attractive to focus on these elements

Answer 41

That which need to be paid off within a year they include overdraft taxes payable and dividends Total current liabilities are deducted from total fixed and current assets to give the value of assets employed

Answer 42

That’s that the business will pay off over several years such as loans and mortgages

Answer 43

I said that the business is likely to keep for more than a year such as property land and equipment

Answer 44

Total equity and net assets

Answer 45

Assets of the business is likely to exchange for cash within the accounting year before next balance sheet is made this includes receivables and inventories

Answer 46

Total fixed and current assets minus total current and non-current assets

Answer 47

Amount of cash the business has available to pay a day-to-day debts Current assets minus current liabilities

Answer 48

How easily it can be to turn us into cash Can be improved by decreasing stock level speeding up collection of debts out to the business or slow down payments to credit

Answer 49

Compares current asset to current liabilities Current assets/current liability Ideal to be 1.5 to 2 Value below 1.5 suggested liquidity problem and a struggle to meet its current liabilities

Answer 50

Inventory turnover Payable days Receivables days

Answer 51

Tell you how many times during the year the business sold all the stock Cost of sales/cost of average stock held Can be improved by holding less stock or increasing sales easier

Answer 52

Payable/cost of sales X365 Number of days the phone takes to pay for goods advice on credit from supplies You can use the ratio to maximise it cash flow

Answer 53

Shows where a business gets his capital from and how vulnerable business is to change as an interest rate %= noncurrent liabilities/total equity plus noncurrent liabilities X 100 Gearing above 50% showed more than half the business as finance comes from long-term debt

Answer 54

Total equity +non-current liabilities

Answer 55

More the business is borrowing the holiday will be hit by rising interest rates Guarantee risk assessment can be used so an investor can help this decide whether to buy shares in the company or not the more the firm borrows the more interest they will have to pay. This may affect dividend paid the shareholder but that shows that the owner can take risks which may attract investors

Answer 56

Same as assets and there’s a amount invested into the business

Answer 57

Total assets- total liabilities

Answer 58

Current ratio

Buisness Mock November Flashcards

(82 cards)