Business Activity
The next best thing given up by choosing another
What is opportunity cost
A bearded Canadian lumberjack cutting down trees in the forest
(What sector?)
What is primary sector
A document outlining details of owners, finance, consumer needs and solutions, target market, competition, sales and marketing tactics and general operations of a business
What is a business plan
Business structure, activities, procedures, HR policies, layout of buildings are explained to new employees
What is induction training
Hard working, risk taker, creative, optimistic, confident, innovative, independent, good communicator
What are characteristics of a successful entrepreneur
The government of Japan recently sold their postal service to a private company. This is an example of
What is privitization
An individual who takes risks and organizes land, labor and capital to provide added value and satisfy consumer wants and needs at a profit
What is entrepreneur
Non financial rewards such as health benefits, increased holiday time, company car
What are fringe benefits
When a firm becomes a limited company, the main advantage is
What is limited liability
The difference between the value of inputs (cost of materials) and the value of outputs (selling price)
What is value added
- Providing variety to work done
- Reduces risk of boredom
- Widens skills of employees
- Employees may require more training as a result
What is job rotation
This has both private sector and public sector businesses
What is a mixed economy
three ways a government can help start up companies are
What is (any three of)
- grants, loans, advice, low interest loans, make research facilities available, provide enterprise zones with lost costs
- low productivity (workers don't want to do their work effectively)
- high labour turnover (workers want to leave business)
- lack of participation and ideas
- in the long run: lower profits
- in the long run: wastes
(What causes these?)
What are problems resulting from poor employee motivation
Planning, organising, coordinating, commanding, controlling
What are the roles of management
The two main aims of most businesses
What is satisfy needs/wants, make a profit
A firm sells the rights to use its name and methods and sell its products, the firm provides advice and training in exchange for a fee
What is a franchise
Three advantages to expanding are
What is more sales/revenue/customers, economies of scale, prestige (name recognition)
- fall in demand
- new technology so less labour is needed
- takeover/merger causes job duplication
(What does this result in?)
What are reasons for downsizing
Health and safety, minimum wage, unfair dismissal and anti-discrimination policies, employment contracts
What are legal controls