Unit 1 # 1 - Business activity and influences on Business
State two financial aims and objectives
2 of
survival, profit, sales, market share, financial security
State 2 non financial objectives
state 2 of
social objectives, personal satisfaction, challenge, independence and control.
Difference between internal and external communication
Internal - within business
External - outside business
State two different types of training
On the job, off the job, induction
What is the difference between fixed and variable costs
Fixed - do not change with level of output produced
Variable - do change with level of output produced
Difference between small and large business
Under 50 employees small
Over 250 employees large
Define sole trader
1 owner of the business
State two barriers to communication
E.g. jargon and tech problems
Difference between job description and person specification
Job description - role , duties of job
Person specification - skills and qualities needed of application
State three internal sources of finance
personal savings
• retained profit
• selling assets.
Difference between franchise, franchisor and franchisee
A franchise is the business model, a franchisor is the parent company that owns the brand and sells the rights, and a franchisee is the independent business owner who buys those rights to operate a branch
Define partnership
Between 2-20 owners
State 4 financial methods motivation
4 of
o remuneration
o bonus
o commission
o promotion
o fringe benefits
State three non financial methods motivation
o job rotation
o job enrichment
o autonomy.
What is a cashflow forecast and what are the main parts on the forecast
Prediction of cash inflows and outflows
-net cash flow , opening and closing balances
Name 3 main factors in deciding location of business
proximity to market, labour, materials and competitors
nature of the business activity
If interest rates decrease, how are businesses impacted?
Consumer spending increases, cost of borrowing for businesses decreases
Draw a flat vs tall organisational structure
Accurate diagrams
State what makes an effective CV
E.g. contact details, skills, no spelling mistakes, past experience
What is BE if fixed costs = $50,000, selling price is $40 and VC per unit $10
1667 units (needs to round up )
Using formula FC/ SP - VC per unit
If the 1 NZD = 0.8 AUD and now 1NZD = 0.9 AUD , explain the impact on NZ's importers and exporters
NZD has appreciated relative to AUD, so now imports become more affordable and exports become less competitive
How do trading blocs impact businesses?
If business is in trade bloc, easier to trade with trade bloc countries, but may be harder to trade with other countries
Difference between Maslow's, Taylor's and Herzberg's motivation theories
Accurate description of the three
Difference between centralised and decentralised.
Centralised - decision making made by those at higher levels of business
Decentralised - decisions made by those at all levels of business
Difference between statement of comprehensive income and statement of financial position
Statement CI - showing past revenue, cost of good sold, gross profit, operating expenses, operating profit, tax, profit after tax
Statement FP - snapshot showing value of assets, liabilities, capital employed