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Business AS Level Exam > 1 > Flashcards

1 Flashcards

1
Q

define profit

A

difference between the level of income generated and the costs incurred by the business

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2
Q

define revenue (turnover)

A

income generated from the sale of goods and services in a market

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3
Q

work out profit

A

revenue-costs

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4
Q

work out revenue

A

selling price x quantity

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5
Q

define market

A

any situation where buyers and sellers are in contact in order to establish a price

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6
Q

define competition

A

rivalry amongst sellers

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7
Q

why have non-physical markets grown rapidly?

A

convenience

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8
Q

why do physical markets continue to exist?

A

personilisation that they offer

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9
Q

define market price

A

price range that the consumers are willing to pay

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10
Q

define competitive market

A
  • large number of sellers

- competition mainly based on price

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11
Q

define monopoly

A
  • market dominated by 1 seller

- low number of firms and prices are often high but not always

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12
Q

when do economies to scale arise

A

unit costs fall as output rises

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13
Q

define oligopoly

A

market dominated by a few large firms. example- mobile phones market.
products and prices are similar.
they force other firms out of the market

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14
Q

define monopolistic competition

A
  • large number of firms and price isn’t applicable.

- compete on non price differences such as late opening times.

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15
Q

define market size

A

number of individuals in a market who are potential buyers of a product/service.

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16
Q

define market growth

A

refers to an increase in the demand for a business products.

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17
Q

define market dominance

A

measure of strength of a business and its product(s) relative to the competition

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18
Q

define barriers to entry

A

factors that could prevent a firm from entering and competing in a market

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19
Q

define barriers to exist

A

factors that could prevent a firm from leaving a market

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20
Q

5 barriers to entry

A
  • large start up costs
  • inability to gain economies of scale
  • legal restrictions
  • having marketing budget to break customer loyalty
  • possibility that existing businesses will start price
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21
Q

define price

A

amount customers pay for a product

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22
Q

define cost

A

amount spent by a business making the product

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23
Q

strategies to increase market share

A
  • have a clear marketing plan
  • use a variety of marketing techniques, e.g pricing and promotion
  • merge with a competitor
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24
Q

ways to obtain market dominance

A
  • organic growth
  • acquisitions
  • mergers
  • barriers to entry
  • barriers to exist
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25
Q

define mergers

A

2 companies join together to form a new larger business

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26
Q

define acquisition

A

control of another company is achieved by buying a majority of its market share

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27
Q

organic growth is by increasing market share- 2 ways

A
  • loyalty schemes

- advertising

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28
Q

define demand

A

amount of a good/service that customers are willing and able to buy at any given price

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29
Q

define supply

A

amount of a good/service that sellers are willing and able to sell at any given price

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30
Q

define equilibrium

A

situation in a market where demand is equal to supply

31
Q

factors that determine demand

A
  • price
  • income
  • wealth
  • advertising, promotional offers and public relations
  • taste and fashion
  • demographic changes
32
Q

factors that determine supply

A
  • changes in the costs of production
  • changes in technology
  • government taxes and subsidies and regulations
  • changes in climate in agricultural industries
  • change in the prices of a substitute in production
  • number of producers in the market and their objectives
33
Q

define inelastic

A

change in demand that results from a price change is less than the change in price that caused it

34
Q

define elastic

A

change in demand that results from a price change is greater than the change in price that caused it

35
Q

define globalisation

A

process of growth in world markets through a process of integration where it is possible to trade in a global market in the same way as one would in a domestic market

36
Q

factors that facilitated globalisation

A
  • internet
  • transport infrastructure
  • rise of multi nationalists
37
Q

define multi nationalists

A

company based in 1 country but manufactures and sells products in a variety of other countries

38
Q

why are so many companies keen to be multi nationalists?

A

-economies of scale can be obtained
-ability to take advantage of a lack of legal constraints
-new markets with less competition
ability to take advantage of lower labour

39
Q

define infrastructure

A

roadrail and airlinks that allow people and outputs to move fast around a country to help trade

40
Q

characteristics of a tall structure

A
  • many layers
  • slower communication
  • small span of control
  • more promotional opportunities
41
Q

characteristics of a short structure

A
  • faster communication
  • less motivation
  • fewer promotional opportunities
  • wider span of control
42
Q

define by system

A

arranging the business according to what each department does

43
Q

define by product

A

organizing according the different products made

44
Q

advantages of matrix structure

A
  • help break down traditional department barriers, improving communication across organisation
  • allows individuals to use particular skills
  • avoids the need for several departments to meet regularly
  • likely to result in greater motivation amongst the team members
  • encourages cross-fertilization of ideas across departments
45
Q

disadvantages of matrix structure

A
  • difficult to co-ordinate
  • team members may neglect their functional responsibility
  • its takes time to get used to working in this structure
46
Q

define centralized structure

A

decision making is made at the top of hierarchy

47
Q

benefits of centralization

A
  • easier to co-ordinate and control from centre
  • quicker decision making
  • easier to implement common policies
48
Q

drawbacks of centralization

A
  • more bureaucratic

- customer service- lost flexibility and speed of decision making

49
Q

benefits of decentralisation

A
  • improved level of customer service
  • enable flatter hierarchy
  • facilitates empowerment
50
Q

drawbacks of decentralisation

A
  • harder to achieve tight financial control
  • harder to ensure consistent practices and policies at each location
  • decision making not necessarily “strategic”
51
Q

stages of recruitment process before making an appointment

A 
1 identify a vacancy
2 draw up job description
3 draw up person specification
4 advertise job
5 review applications
6 shortlist candidates
7 interview
8 appoint new employee
52
Q

why might a new vacancy arise

A
  • employee leaves/retires
  • promotion
  • business grows
  • need for new skills
53
Q

define job description

A

document that describes duties of a worker

54
Q

define person specification

A

profile of the type of person needed for a job

55
Q

define internal recruitment

A

when a vacancy is filled with someone within the organisation

56
Q

define external recruitment

A

organisation fills a post with someone from outside the organisation

57
Q

benefits of internal recruitment

A
  • less need for induction training
  • opportunity of promotion within a company may encourage good workers to stay rather than look for promotion elsewhere
  • candidate already knows the ways of the workplace meaning it saves time
58
Q

benefits of external recruitment

A
  • likely to bring new ideas and enthusiasm to the job
  • field of applicants will be bigger
  • cause less resentment than choosing an internal candidate
59
Q

examples of methods of recruitment

A
  • local and national newspaper
  • recruitment agencies
  • job centres
  • specialist magazines
60
Q

benefits and drawbacks of local newspapers as a method of recruitment

A
  • low costs B
  • attracts locals- convenient and easy to travel to B
  • limited audience number D
61
Q

benefits and drawbacks of national newspapers as a method of recruitment

A
  • attracts a wide range of people across the whole country B

- very expensive D

62
Q

benefits and drawbacks of recruitment agencies as a method of recruitment

A
  • specialise in your field B
  • good knowledge of market place B
  • impersonal D
  • no influence over decisions D
63
Q

benefits of an application form

A
  • applicant can only provide info directly by employer
  • easily compare
  • questions can add personalisation
  • more likely to get up to date info
64
Q

drawbacks of an application form

A
  • can lie
  • restricted info
  • might put people off applying as it is time consuming
65
Q

benefits of a CV

A
  • good way to show all qualifications
  • more personal
  • shows progression, i.e. progression
66
Q

drawbacks of a CV

A
  • harder to compare
  • time consuming
  • can lie
67
Q

define psychometric testing

A

test to help identify a candidates skills, knowledge and personality

68
Q

2 main types of psychometric testing

A
  • personality

- aptitude

69
Q

define personality tests

A

explores your interests, values and motivations, analysing how your character fits with the role and organisation

70
Q

define aptitude tests

A

assesses your reasoning or cognitive ability, determining whether you’ve got the right skillset for a role

71
Q

benefits of psychometric testing as a selection method

A
  • narrows down the applicants that fits your businesses requirement
  • see what personality is like
  • see whether fits with your specific business values
72
Q

define training

A

process of increasing the knowledge and skills of the workforce to enable them to perform their job effectively

73
Q

benefits of training

A
  • less direct supervision
  • improves efficiency
  • improves customer service
74
Q

different types of training- induction training checklist

A
  • health and safety regulations
  • basic rules and regulations
  • meeting line managers

Business AS Level Exam (8 decks)

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