defintions

Question 1

mission statement

Answer 1

a formal statement that sets out what a business wants to achieve in an aspirational manner

Question 2

fixed costs

Answer 2

costs that stay the same regardless of output

Question 3

variable costs

Answer 3

costs to a business that change in relation to output

Question 4

total costs

Answer 4

all the costs associated with the provision of a good or service

Question 5

market capitalisation

Answer 5

the value that the stock market places on a public limited company based on the total value of shares issued.

Question 6

ltd / plc

Answer 6

A private limited company (ltd) is owned by shareholders who are known to the board of directors, e.g. family and friends.

A public limited company (plc) is owned by shareholders who are able to buy and sell shares openly on a public stock exchange.

Question 7

tannenbaum and schmidt model

Answer 7

leadership model based on a spectrum that shows 7 levels of delegation ranging between the two extremes of manager-centered and subordinate - centered approaches

Question 8

the black mouton grid

Answer 8

pictoral grid considers management styles in relation to the level of concern for employees versus the level of concern for production. The grid shows 5 leadership styles