Business Basics
What are the four factors of production?
Land, labor, capital, and entrepreneurship.
Which management function involves setting goals and deciding how to reach them?
Planning
What is revenue?
The total money earned from sales before costs are subtracted.
What are the 4 Ps of marketing?
Product, Price, Place, and Promotion.
A store has employees who are unsure of their roles. Which management function should the owner improve first?
Organizing
Which factor of production is most directly connected to workers’ skills and effort?
Labour
A manager assigns workers to different roles during a shift. Which management function is this?
Organizing
A business sells 100 drinks at 20 baht each. What is the revenue?
2000 baht
What is a target market?
A specific group of consumers most likely to buy a product.
A business has high revenue but still makes a loss. What is the most likely reason?
Its total costs are higher than its revenue.
What is a business model?
A plan for what a business sells, who it sells to, and how it makes money.
What does controlling mean in business management?
Checking performance, comparing results to goals, and making changes when needed.
Give one example of a fixed cost and one example of a variable cost.
Fixed cost: rent. Variable cost: packaging, ingredients, or materials per product.
Which type of segmentation focuses on age, income, gender, or education?
Demographic segmentation.
A snack bar company targets fitness-focused young adults because they care about protein and health. What two types of segmentation could this show?
Demographic segmentation and psychographic/lifestyle segmentation.
What is one advantage and one disadvantage of a sole proprietorship?
Advantage: the owner has full control and keeps profits. Disadvantage: the owner has limited access to funding and may face unlimited liability.
What is delegation, and why is it useful?
Delegation means giving tasks or responsibility to employees. It is useful because it empowers workers, improves efficiency, and helps managers avoid doing everything themselves.
A business has revenue of 40,000 baht and total costs of 22,000 baht. What is the result?
18,000 baht in profit
A new brand sells below competitors to attract customers quickly. What pricing strategy is this?
Penetration Pricing
A business uses Instagram, TikTok, school events, gyms, and cafés to reach customers. Which 4 Ps are being discussed?
Place and promotion
A business wants to increase profits but also keep customers happy with fair prices. What type of issue is this showing?
A stakeholder conflict or trade off
A manager makes quick decisions during an emergency without asking the whole team. What leadership style is this, and why might it fit the situation?
Autocratic leadership. It may fit because emergencies require fast decisions and clear direction.
Fixed costs are 10,000 baht. The product sells for 100 baht. Variable cost per unit is 60 baht. What is the contribution per unit and break-even output?
Contribution per unit = 40 baht. Break-even output = 250 units.
A company launches a new technology product at a high price and lowers the price later. What pricing strategy is this?
Price skimming
A growing business owner makes every decision alone, rarely delegates, and forgets to check sales targets. Give two recommendations.
The owner should delegate tasks to trusted employees and use controlling by checking sales targets regularly. The owner could also create clearer roles or a more organized structure.