Business and its
environment
environment
An entrepreneur is
What is an individual who has the idea for a new business, starts it up and carries most of the risks but benefits from the rewards
Human resources management is
What is the strategic approach to the effective management of employees so that they help the business gain a competitive advantage
Marketing is
The management task of identifying and meeting the needs of customers profitably by getting the right product at the right price to the right place at the right time
Productivity is
The ratio of outputs to inputs during production
Working capital is
What is the capital needed to pay for raw materials, day-to-day running costs and credit offered to customers
The difference between a private company and a public company is
What is public companies have publicly traded shares, while private companies have ownership within a family
The difference between McGregor's Theory X and Theory Y that describe management approaches is
What is Theory X is that managers view employees as lazy and in need of direction and Theory Y is that managers view employees as internally motivated and are prepared to take on additional responsibilities
The difference between supply and demand is
What is Supply is the quantity of a product that firms are prepared to supply at a given price in a specific time period, while demand is the quantity of a product that consumers are willing and able to buy at a given price in a specific time period
JIT inventory management acronym and usefulness
What is just-in-time, which aims to avoid holding inventories by requiring supplies to arrive just as they are needed in production and completed products are produced to order
A favorable variance in regards to budget is
What is a change from the budget that leads to higher than planned profits
What is external stakeholders are separate from the business but are affected by its operations, while internal stakeholders work within or own the business and are affected by its operations
The first person to truly analyse worker motivation, who concluded that
What is Frederick Taylor, who concluded that employees were only motivated by money, so the best way to keep employees motivated was to pay them based on a piece rate system
Sampling bias definition and how researchers avoid it
What is when a sample is not a good representation of the whole population, because it is chosen in ways which give some people a greater chance of being selected. It is avoided by using a larger sample size with a goal confidence level of 95%
The labor productivity formula is
What is:
Output in a given time period/workers employed
Define liquidity. Is it better to have a low level of liquidity or a high level of liquidity
What is the ability of a business to pay for its short-term debts. High level of liquidity is better
Three main ways of measuring business size (5 total)
What is the number of employees, revenue, capital employed, market capitalisation, market share
Maslow's hierarchy of needs includes 5 levels ordered by significance. What are these levels in order?
What are physical needs, safety needs, social needs, esteem needs and self-actualisation
The four stages in a product's life cycle and what their significance in the product life cycle are
What are introduction - product just launched - usually low sales. Growth - product was effectively promoted and well received by customers - growing sales. Maturity - product is starting to become saturated - stagnant sales. Decline - product has reached its full saturation - sales decline
The formula for the rate of capacity utilisation is
What is
Current output/Maximum output x 100
The definitions of direct costs, indirect costs, fixed costs and variable costs are
Direct - costs that can be clearly identified with each unit of production and can be allocated to the cost center, indirect - costs that cannot be identified with a unit of production or allocated accurately to a cost center, fixed - costs that do not vary with output in the short run, variable costs - costs that vary with output
There are three aims of social enterprises: economic, social and environmental. Explain each of these goals
What is: economic - re-invest back into the business and return some profits to owners, social - provide jobs or support for local communities, and environmental - protect the environment and to manage the business in an environmentally sustainable way
The labor turnover definition and formula are
What are: Definition - measures the rate at which employees are leaving an organisation
Formula:
# employees leaving in 1 yr/avg # employees x 100
New product development is important for 7 reasons. 5 are
What are changing consumer tastes and preferences, increasing competition, technological advancement, new opportunities for growth, risk diversification, improved brand image and use of excess capacity
5 of the 7 requirements to successfully operate JIT are
What are excellent supplier relations, multi-skilled and flexible production employees, flexible equipment and machinery, accurate demand forecasts, IT equipment, excellent employee-employer relationships and the prioritization of quality
The four categories of cash inflows are
What are owners savings, bank loans, customer cash purchases and trade receivables payments