Section 1 Business Activity
Any person or group with a direct interest in the performance and activities of a business.
What is a stakeholder.
An amount paid for each unit of output.
What is piece rate.
When businesses change product prices , usually when selling online, depending on the level of demand.
What is dynamic pricing.
A Japanese term meaning 'continuous improvement'
What is Kaizen
The increase in average prices of goods and services over time.
What is inflation.
We have unlimited wants but limited resources to produce goods, creating scarcity.
What is the economic problem
The levels of management in any organisation, from the highest to lowest.
What is a hierarchy.
A business whose main focus of activity is on the product itself.
What is product orientated.
A production method aimed at reducing or eliminating inventories.
What is just-in-time (JIT)
The level of income a tax payer has after paying income tax.
What is disposable income.
When the production process is split up into different tasks and each worker performs one of these tasks. A form of specialisation.
What is division of labour.
Giving a subordinate the authority to perform particular tasks.
What is delegation.
Where consumers are sensitive to price changes.
What is price elastic demand.
Factors that lead to an increase in average costs as a business grows beyond a certain size.
What is diseconomies of scale.
A tax on imported products.
What is import tariff.
When one business merges or takes over another one in the same industry at the same stage of production.
What is horizontal integration.
Involves being trained away from their workplace, usually by specialist trainers.
What is off-the-job training.
An identifiable sub-group of a whole market in which consumers have similar characteristics.
What is a market segment.
The amount by which sales exceed the break even point.
What is margin of safety.
Trying to increase competitiveness of domestic industries, e.g. making the economy more efficient.
What is supply side policies.
The total value of capital used in a business
What is capital employed.
When messages are sent through established channels, using professional language.
What is formal communication.
A plan to combine the right combination of the 4 elements of the marketing mix to achieve marketing objectives.
What is a marketing strategy.
The continuous improvement of products and processes by focusing on quality at each and every stage of production.
What is total quality management (TQM).
When countries agree to trade imports/exports with no barriers such as tariffs or quotas.
What are free trade agreements.