Business
Add Value
Selling price- total cost
What are methods of motivation
Financial and nonfinancial
What is marketing?
Identifying customers needs and wants
What are the 4 inputs of production
labor, land, capital, and enterprise
What are sources of finance
Internal - profits, sale of assets, renting,etc
External- loans, grants, crowdfunding etc
What's the difference between private sector and public sector?
Private are owned by individuals and public is owned by businesses
Give examples of 3 financial motivators
Wages , Salaries, Bonus, Commission
What is market share?
the percentage of total sales of a market held by a business
What are the main methods of production
Batch, Job, and Flow
What is a balance sheet
A document that shows the value of the company. It gives details of the assets, liabilities, and equity.
How do you determine business size?
Number of people employed
Value of output
Value of sales
Capital employed
3 Leadership styles
Autocratic
Democratic
Laissez Faire
Product - oriented- focuses on the product
Market oriented- focus on the market research and what the customer wants.
What is the difference between capital and labor intensive
Labor uses workers
Capital uses machines/robots
What are current assets and liabilities
Items that can be sold or paid in within the year.
What are 3 business objectives?
Survival
Profit
Growth
Market Share
Service
Dismissal vs Redundancy
Dismissal - worker is told to leave job due to poor work or behavior
Redundancy- employee did nothing wrong but business no longer needs employee
Questionaires/survey
Interview
Quota sample
Focus group
Observations
How can you increase production
Improve labor skills
Machines
New Technology
Quality control
Increase output
Lower cost
Why should a business use forecasting
Economies of Scale.
Benefits of scaling your business
Increase target audience
Lower interest rates
More staff
More Machines/Technology
What are the functions of managers?
Planning, Organizing, coordinating, commanding and controlling
Development
Introduction to market
Growth
Maturity
Saturation
Sales decline
It is a lean production method. low inventory is used and reduces cost by not holding inventory.
What is a break even analysis
The point where the cost equals the revenue. Above the BEP there is a profit and below is a loss