11 May Assessment Topics Flashcards
What is a multi-national organisation?
A very large business which has outlets or production facilities in a number of different countries, while maintaining a definite home base.
4 advantages of a multi-national?
Host countries may offer grants/financial incentives such as tax breaks to entice businesses to open facilities in their country, Cost of land/labour considerably less in host countries, reducing costs, increasing profits, Can sell more in host country than they would exporting as they are not restricted by quotas/tariffs, Corporation tax may be lower in host country meaning owners can keep more of their profits.
4 disadvantages of a multi-national?
Local currency too weak to allow profits to be converted back at good rate, Technical expertise/local infrastructure may be poor requiring lots of investment, Host country may be politically unstable, Local legislation may restrict business practices that are legal in other countries.
What is a staff appraisal?
When CPD is analysed by meeting between employee and their line manager.
3 purposes of a staff appraisal?
Evaluate performance of employee, Assess training needs to set realistic targets in line with business objectives, Identify employees suitable for promotion.
What are VLEs?
Virtual learning environment (VLE) training allows employees to access training materials on-line or through specific industry-based software packages.
VLE environments allow learners to: access training materials, submit assignments and assessments
chat with other learners or experts.
VLE can be accessed from anywhere. This means employees can undertake training at a time or place of their choice. It can be costly for an organisation to set up a VLE. But it can save the company time and money on travel or employing specialist trainers.
What is labour intensive production?
Production process that has high reliance on skills of human labour rather than machine automation.
4 advantages of labour intensive production?
Easy to organise, Additional flexibility due to human skills, More responsive to changes in needs of customers, Lower start up costs than capital intensive as no initial outlay on machinery/equipment.
4 disadvantages of labour intensive production?
Skilled workforce expensive to recruit, pay and train, Business cant take advantage of economies of scale, Staff illness/absence impacts production process, Additional quality control measures required due to human error.
What is re-order quantity?
The amount of stock ordered to restore inventory levels to their maximum point.
What is computerised stock control?
Means that changes in stock are recorded as they take place, giving a running balance total which should be accurate at any point in time, reducing the need for physical stock counting prior to re-ordering. Management can use computerised systems to help with decision making eg if an item is not selling well and this is highlighted by the computerised stock system, they can discount the price to encourage sales. Many such systems now allow automatic input of data via scanning of bar codes and automatic re-ordering when re-order level is reached. A physical stock count MUST be carried out at least once per year in order to provide closing stock figures for the Final Accounts and to check the accuracy of the levels (theft of stock will not show up on the computerised system).
3 areas of ratio?
Profitability, Liquidity-measures ability of organisation to pay debts, Performance-measures how efficiently organisation is running.
Gross Profit Ratio?
gross profit/sales x 100 - shows % of gross profit for every £1 of sales.
What does the gross profit ratio show?
Increase shows more sales have been generated.
Decrease shows suppliers prices for materials may have risen.
Profitability ratio?
profit for the year/sales x 100 - shows % of profit for year for every £1 of sales. Higher figure more profitable business.
