Business Activity
A document outlining details of owners, finance, consumer needs and solutions, target market, competition, sales and marketing tactics and general operations of a business
business plan
A bearded Canadian lumberjack cutting down trees in the forest
(What sector?)
primary sector
Cost of sales is calculated by...
Opening stock + purchases - closing stock
Business structure, activities, procedures, HR policies, layout of buildings are explained to new employees
induction training
Why do we need to know the breakeven point?
To know when a business starts making profit or loss.
something to be consumed that is essential for survival
need
The government of Japan recently sold their postal service to a private company. This is an example of
privitization
Income = 1000
Cost of Goods Sold = 200
Expenses = 300
Net Profit =
500
Non financial rewards such as health benefits, increased holiday time, company car
fringe benefits
When a firm becomes a limited company, the main advantage is
limited liability
The difference between the value of inputs (cost of materials) and the value of outputs (selling price)
value added
Government owned organizations make up this sector
public sector
When expenses are greater than income
net loss
- 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
If revenues are 1010 and costs are 273, what is the profit?
737
these are the four factors of production
land, labor, capital, enterprise
This has both private sector and public sector businesses
mixed economy
Examples may include salaries, utilities, rent, insurance, and office supplies
Expenses
Output is 8,000, number of workers is 4. What is the labour productivity?
8,000 / 4 = 2,000
Planning, organising, coordinating, commanding, controlling
roles of management
four ways to measure business size are:
market share, sales, number of employees, capital employed
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
franchise
The comparison of a firm's current assets to current liabilities. The ratio indicates the amount of current assets available to pay off $1 of current debt.
Current ratio
- fall in demand
- new technology so less labour is needed
- takeover/merger causes job duplication
(What does this result in?)
reasons for downsizing
Fixed costs 2000
Variable costs 30
Sale price 50
Which is the break even output?
100