Business Activity
The difference between the selling price of a product and the cost of buying or making it.
What is profit?
Money paid to workers based on hours worked.
Wages (hourly-based pay)
The four elements of the marketing mix.
What are product, price, place, promotion?
The process of making goods or services.
What is production?
Costs that do not change with the level of production.
What are fixed costs?
Produces goods using raw materials and sells them to other businesses.
What is the Secondary Sector?
A payment made to employees based on the number of units they produce.
What is piece rate?
The process of collecting and analyzing information about customers and markets.
What is market research?
Producing items in large quantities using standardized processes.
What is mass production?
The point where total revenue equals total costs.
What is the break-even point?
The process of dividing work into specific tasks to improve efficiency.
What is the division of labour?
A leadership style where employees are involved in decision making.
What is democratic leadership?
A group of consumers with similar needs or characteristics.
What is a market segment?
The maximum output a business can produce in a given time.
What is Capacity?
Money invested into a business by the owner.
What is capital?
The main reason most businesses start.
What is profit?
The assignment of responsibility to a subordinate.
What is delegation?
A pricing strategy where a product is introduced at a low price to attract customers quickly.
What is penetration pricing?
A method used to ensure products are made to a consistent standard by checking them during and after production.
What is quality control?
Money owed by a business to suppliers.
What are liabilities?
A business owner chooses to invest $50,000 into new machinery instead of opening another store. The profit that could have been made from the store represents this concept.
What is opportunity cost?
Paying employees a percentage of sales they generate, encouraging them to sell more while transferring some risk to the business.
What is commission-based pay?
A feature that makes a product different from competitors.
What is unique selling point?
A system where materials arrive just as they are needed in production.
What is Just-In-Time?
A financial measure showing the return to shareholders as a percentage of equity, often used to compare efficiency across businesses.
What is return on capital employed?