Business & Environment
What is an Entrepreneuer?
A person willing to take risks to start a business
What is Inventory?
Goods or materials held by a business for future use or sale.
What is Cash Flow?
Spending on the day‑to‑day operating costs of a business
What is E-commerce?
Buying and selling goods and services over the internet.
What is the Span Of Control?
The number of workers directly managed by one manager.
What are the factors of production?
LLCE (Land, Labour, Capital, Enterprise)
What is Buffer Inventory?
Extra inventory kept to protect against unexpected delays or shortages.
What is Start-Up Capital?
The initial finance invested in a business to pay for non‑current assets
What are the 4 P's of marketing? (Marketing Mix)
Price, Product, Promotion, Place
What is a Piece Rate?
A payment system where workers are paid for each unit they produce.
What is a Public Limited Comapny?
Limited company that is listed on the stock exchange and has to publish accounts.
What is Lead time?
The time between placing an order and receiving the inventory.
What is Revenue Expenditure?
Spending on the day‑to‑day operating costs of a business
What is a Tangible Attribute?
A physical feature of a product such as size, colour or design.
What is the Chain Of Command?
The formal line of authority from the top of the organisation to the bottom.
What is Horizontal Intergration?
When two companies on the same level and same industry merge
What is a Stockout?
A situation where a business runs out of inventory it needs.
What is an Insolvency?
When a business cannot pay its debts when they are due
What is a Dog?
A product with low market share in a low-growth market.
What is Job Enrichment?
Giving workers more responsibility and more challenging tasks to increase motivation.
What is a Cooperative?
A business owned by all its members who each have equal say in business ideas and decisions
What is Rationalisation?
Cutting back or closing production units to reduce excess capacity and lower costs
A manufacturing firm produces a electronic component with a fixed monthly cost of $48,000 and a variable cost of $37.50 per unit, and it sells each unit for $62, but the CEO is considering lowering the price by p% to increase demand, which rises by 120 units for every 1% decrease in price. If the firm reduces the price by p%, its new profit function becomes Π(p)=(62(1−p100)−37.5)(4000+120p)−48,000, and the board wants to choose p to maximise profit while ensuring the new selling price stays above $50 to maintain premium brand positioning. Determine the value of p that maximises profit under this constraint, and calculate the corresponding maximum monthly profit.
p ≈ 9.6%
What is a Loss Leader?
A product sold at a very low price, sometimes below cost, to attract customers into buying other goods.
What is Decentralisation?
A system where decision-making is spread to lower levels of management.