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Business April Mock Flashcards

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1
Q

What is a trustee?

A

Takes responsibility for managing money and assets that have been set aside in a trust for the benefit of someone else
Usually board of directors /charities

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2
Q

Taylor

A

Main focus on efficiency
Workers are motivated for money workers should be minimum amount of work if left alone
Small repetitive
peace rate pay
productivity meant fewer workers needed however reduction in quality

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3
Q

Maslow’s hierarchy of needs

A
  1. Self actualisation.
  2. Self esteem./Achievement.
  3. Social needs/friends.
  4. Safety/job security.
  5. Physical needs such as food water.
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4
Q

What is Herberg hygiene factors?

A

Good company policy which does not motivate workers but satisfies them

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5
Q

Herberg motivating factors

A

Interesting Work positively motivate workers into working better

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6
Q

Public sector

A

Organisations owned and run by the government to provide services to public gravity making a profit such as NHS and police force and its funded by the tax system

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7
Q

Private sector

A

Owned and run by the private individuals range from sale traders to huge organisations such as Asda John Lewis and they aim to make a profit
Charities are part of the sector such as nonprofit

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8
Q

Nonprofit

A

Charities that make money from donations and business activities money used to fund activities tax reductions due to nonprofit structure

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9
Q

Limited liability

A

Owners aren’t responsible for debts of business

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10
Q

Unlimited liability

A

Own are responsible for debts of business

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11
Q

Mutual organisations

A

Like building societies aim to offer best possible value for customers and product
Profits reinvested in order to reduce prices
Offers higher saving rates and lower loan rates and banks and don’t have to pay any profits to shareholders

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12
Q

Pros of sole trader

A

Freedom where own boss complete control of decisions
Profit takes all the profit
Savings on fees as as no legal cost

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13
Q

Cons of sole traders

A

Risky
Long working hours
Limited skills and expertise In area
Finances limited
Owner can get ill so no work will be done
Unlimited liability

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14
Q

Private limited companies

A

Cannot sell shares to public
Don’t have share prices quoted on stock exchange
Small family businesses often
No minimum share capital requirements

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15
Q

Difference between small and large private limited companies

A

In small, directors of the shareholders
Enlarge, directors are elected to the board by shareholders

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16
Q

Market capitalisation

A

Total value of ordinary shares issued
Market value = number of shares issued multiplied by current share price

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17
Q

Main roles of shareholders

A

To provide funds
Attend annual general meetings where she does have the right to vote

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18
Q

What do shareholders invest for?

A

Capital gains
Dividend pay
Involved to running firm
Want to see succeeded or to help survive and grow the firm

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19
Q

Factors influencing demand and supply shares

A

Performance of company
Speculation of new products launched
Current share price
Interest rates
Economy

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20
Q

What is break even?

A

Number of sales needed to cover its cost

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21
Q

Break even output formula

A

Fix cost divided by contribution per unit

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22
Q

Margin of safety

A

Amount between actual output and breakeven

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23
Q

Pros of break even

A

Easy to do and quick this set up
Helps persuade the bank to give them a loan
Influences decisions, whether new products or launch products or not
Helps forecast variations of sales

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24
Q

Cons of breakeven

A

Assume variable costs always rise steadily but businesses can get discounts
Simply for a single product
If data is wrong, results are wrong
Asume business sells more all the products
Only units to break even amount you will sell

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25
Promotional mix
Depends on product, market, competitivity, product life cycle and budget available Expensive and complex products more likely to be promoted by personal selling conveniency by advertising
26
Financial rewards
Increase revenue profit and reduce costs
27
Financial motivators
Increase pay Training to increase product Peace rate pay Commission Time rate pay Fringe benefits Performance relate pay in bonuses Flexible working hours
28
Profitability
Measures total profit against resources used in making profit
29
How to work out margins
Profit over revenue
30
What do margin show?
How profitable a businesses can be used to make comparisons over period of time or compare with other competitors Gross profit can be improved with higher prices and lower cost of sales Operating can be improved via increased prices and lower costs Prof of the year is a high margin is attractive to shareholders
31
 concentrated market
Good for small fans or limited resources where you only target get a couple segments
32
Differentiated marketing
Several segments being targeted
33
Undifferentiated market
Segments are ignored and goes for entire market
34
7 ps
Product Place Price Promotion Physical environment People Process
35
Factors that influence marketing mix
Location Competitors Product life-cycle Target market segment Corporate objectives
36
How to improve competitiveness
Pricing strategies Technological advances Social factors
37
Convenience product
Inexpensive and brought regularly
38
Shopping products
Close competitors, etc brought less regularly
39
Speciality product
Unique and exact brand
40
What is the Boston matrix?
Valuable way of showing where business products opposition in the market Marked decisions will depend on products position Can’t predict exactly what will happen if a product levels may be different from what matrix suggest
41
What is capacity utilisation
How much capacity a business is using
42
Capacity depends on
Number of employees and skills Technology and machinery available Production process kind Amount of investment
43
Why do you not want 100% capacity utilisation
Quality may not be constantly good May have to turn away potential customers as it can’t increase anymore output If machines break , output delays Can’t temporary increase output for seasonal demand
44
Increasing capacity
Using facilities more of the working week But more machines Increase staff levels Increased productivity +motivation Use outsourcing (increase workforce)
45
Why is under utilisation bad
Inefficient and increases unit cost spreads Causes fixed costs to be spread over fewer output
46
How to deal with under utilisation
Change promotion, price and distribution Outsourcing work for other firms Reduce capacity(downsizing ) Reduce capacity short term via cutting overtime Not replacing staff and making redundant
47
Short term changes in capacity utilisation will provide what and long term
Short term flexibility Long term lower unit costs
48
Internal stakeholders
Owners , employees and shareholders
49
External stakeholders
Customers Suppliers Local community Government Creditors
50
Manage closely
High power high interest Shareholders
51
Keep satisfied
High power low interest Council and media
52
Monitor
Low power low interest Local community
53
Keep informed
High interest low power Customer Employee Supplier
54
Factors influencing pricing
Promotion Costs Price of elasticity of demand Product life cycle Competitors
55
Price skimming
New innovative products sold at higher prices the dropped Long term strat to keep brands more exclusive Customers may be put off for high prices and mad they dropped after they bought
56
Penetration pricing
Low price at initial release to attract customers and gain market share Effective for price sensitive markets Only works if cost are low Customers expect price to stay low Extension strategy to lengthen product life cycle
57
Predatory pricing
Deliberately lowers price to force competitors out the market
58
Competitive pricing
Monitor competitors prices
59
Loss leaders
Product sold below cost price Can make profit indirectly
60
Dynamic pricing
Responds to change in demand Aims to increase revenue by changing prices depending on competitors price and demand If demand rises so do prices
61
Cash cows
High market share but low market growth Maturity phase Bring plenty of money
62
Stars
High market growth and market share Growth phase Spend lot of money on promotion
63
Dogs
Low market share and market growth Lost cause entering decline stage
64
Question marks /problem child
New products entering market Require heavy marketing
65
What is personal relations PR?
Gets a business or product good publicity public relations involves liaising with retail answering questions, et cetera And they write brochures, newsletters, and leaflets and deals with product launches
66
Direct selling
From manufacturer to consumer Internet made it user to shop and can be done through door-to-door sales
67
Indirect selling
Manufacturer to retailer to consumer Large supermarkets by convenience and shopping goods in bulk direct from manufacturer
68
Direct direct selling via agent
Sales rep not employed by company and gets commission
69
Multi channel distribution
Sell through more than one method gives flexibility for customers and wise market coverages 
70
Short channels
Industrial products, fewer customers, expensive products bulky and frequently Services 
71
Long channels
Small products, goods, many customers frequent cells not bulky cheap
72
What is a trustee?
Board of directors/members of the board of a charity they are pointed and elected for collective responsibility for managing money and assets
73
Difference in unincorporated and incorporated
Incorporated is the owner is the business. There’s no legal difference and has unlimited liability such a soul traders Unincorporated have limited liability and there is legal difference such plc and ltd

Business (10 decks)

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