Business Activity
What are the four factors of production?
Land, labour, capital, and enterprise
True or False: A curriculum vitae (CV) is a method of selection.
True
What are the four main stages of the product life cycle?
Introduction, growth, maturity, decline
State one internal source of finance.
Any one of: owners' investment, retained profit, sale of unwanted assets, working capital
What is the formula to calculate revenue?
Selling price per unit x number of units sold
True or False: Profit is a recommended method of measuring business size.
False. Profit is not a method of measuring business size
Identify two of the main leadership styles.
Any two of: autocratic, democratic, laissez-faire
True or False: Focus groups are a secondary research method
False. They are a primary research method
True or False: A bank overdraft is a long-term source of finance.
False. It is a short-term finance need/solution
What is the formula for calculating gross profit?
Revenue - cost of sales
Identify two external stakeholder groups.
Any two of: customers, suppliers, lenders/banks, government, local community
State two types of training provided to employees.
Any two of: induction training, on-the-job training, off-the-job training
Identify two pricing methods a business can use.
Any two of: cost-plus, competitive, penetration, skimming, dynamic
Identify two external sources of finance
Any two of: share capital, venture capital, bank overdrafts, leasing, hire purchase, bank loans, trade credit, government grants, crowdfunding
What is the formula to calculate market share?
(Sales revenue of a business / Total sales revenue for the whole market) x 100
Name the two main ways a business can grow externally.
Mergers and takeovers
Name three financial methods of motivation.
Any three of: time-based, piece-rate, salary, bonus, commission, profit sharing, fringe benefits
State three ways a market can be segmented.
Any three of: age, income, location, gender, lifestyle
Name the source of finance: Funding a business venture by raising money from a large number of people who each contribute a relatively small out, typically via the internet.
Crowdfunding
What is the formula to calculate the profit margin?
(Profit/ revenue) x 100%
Explain the concept of opportunity cost.
The next best alternative given up by choosing another item
Identify three stages in the recruitment process.
Job descriptions, person specifications, and job advertisements
Name two extension strategies a business could use to prolong a product's life.
Any two of: new markets, new uses for a product, adapting the product or packaging, increased advertising/sales promotion
Name the source of finance: allows a business to buy a non current asset over a long period of time with monthly payments that include an interest charge
Hire purchase
How do you calculate working capital?
Current assets - current liabilities