Business Activity
A business chooses to rpduce red shoes instead of blue shoes
what is opportunity cost?
a type of business whose main focus of activity is on the product.
What is product orientated business
What is profit
revenue - costs
When the businesses liability is limited to the amount of capiltal invested into the business.
what is unlimited libaility
A way which business a continuous improvement methodology used in production to increase productivity and eliminate waste.
What is kaizen production
what is a need?
a way of keeping a product at the maturity stage of the life cycle by using different ways
What is extension strategy
Short term or Long term financing: Selling Debentures
Long term
A chocolate factory taking over a chair store
What is conglomerate integration?
a manufacturing method that involves producing large quantities of products in a continuous flow.
when a business focuses on what they're good at
businesses change product prices, usually when selling online, depending on the level of demand
what is dynamic pricing
How do you calculate Return on Capital Employed
Net Profit/ Capital Employed
Business owned by an individiual
Sole trader
Raw materials, rent, tax, transport, customer convenience
What are factors you need to consider when moving location?
Hard working, creative, risk taker, innovative
what are characteristics of an entrepreneur
4 ways to segment a market
what is age, location, gender, lifestyle
Formula for Acid Test
Current Assets- Inventory / Current Liabilities
What is it called when two or more business work on a project together
Joint Venture
productivity increase, greater job satisfaction, more skilled workers, better quality products
What are advantages of new technology?
More efficient production, better quality output, employees are more motivated
What are benefits of division of labour?
the 4th and 5th stage of the product life cycle
what is maturity and saturation
Name three ways of raising short term finance
overdrafts, trade credit, selling of assets
What is the business called when it doesnt have a separate identity from its owner.
Unincorporated Business
total cost of production/total output
What is average cost of production