The Big Picture
This stakeholder provides capital in exchange for ownership and voting rights.
What is a stakeholder?
This profitability ratio measures how efficiently a business uses its capital invested to generate profit.
What is Return on Capital Employed (ROCE)?
The four elements of the marketing mix are product, price, place, and this.
What is promotion?
This production method creates standardized products in large volumes.
What is mass production?
This motivation theory suggests people move through five levels of needs.
What is Maslow’s hierarchy of needs?
This business objective focuses on increasing a firm’s share of total industry sales.
What is increasing market share?
This liquidity ratio is calculated as current assets divided by current liabilities.
What is the current ratio?
This type of research collects new data directly from consumers.
What is primary research?
This inventory system reduces stock by receiving goods only when needed.
What is JIT (Just In Time)?
This training takes place while the employee is performing their actual job.
What is on the job training?
This leadership style allows employee input but keeps final decision-making power with the manager.
Answer: What is democratic (participative) leadership?
This investment appraisal method measures how long it takes to recover an initial investment.
What is the payback period?
This pricing strategy sets a high initial price to maximize revenue from early adopters.
This philosophy focuses on continuous improvement and reducing waste.
What is Kaizen?
This leadership theory argues that effective leadership depends on the situation.
What is situational leadership?
This type of growth occurs when a business merges with or acquires another firm at the same stage of production.
What is horizontal integration?
This ratio shows net profit as a percentage of revenue.
What is net profit margin?
This stage of the product life cycle sees slowing growth and intense competition.
What is maturity?
This measures how much of a firm’s potential output is actually being used.
What is capacity utilization?
This compensation system rewards employees based on measurable performance outcomes.
What is performance related pay?
This occurs when a firm increases debt financing, potentially increasing returns but also increasing financial risk.
What is gearing (leverage)?
This occurs when a company sells shares to the public for the first time.
What is an Initial Public Offering (IPO)?
This strategy involves targeting multiple distinct market segments with different marketing mixes.
What is differentiated marketing?
This formula calculates the output needed to cover total costs.
What is Fixed Costs ÷ (Price – Variable Cost per Unit)?
This leadership style is most appropriate in a crisis situation requiring rapid decision-making.
What is autocratic leadership?