Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

business > 2022 mocks > Flashcards

2022 mocks Flashcards

1
Q

define liability

A

refers to the responsibility of the owners of the business for its potential debt and finance, that governed by its legal status.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

define limited liability

A

the business and the owner’s are seen as separate in the eye of the law meaning that the owner’s aren’t personality responsible for any debts of the business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

define unlimited liability

A

refers to when a business and the owner are seen as one under the law, meaning the owners are legally reasonable for any debts.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

evaluation of limited liability

A

+ avoid losing personal belonging when making risky business decisions

  • some business may be better suited to staying small
  • cost of becoming an limited liability business
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

define a business plan

A

a document setting out a business ideas and showing how it is to be financed, marketed and put into practice

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

what are the 9 elements of a business plan

A
  1. executive summary
  2. business ideas and opportunities
  3. aims and objectives
  4. markets research
  5. financial research
  6. sources of finance
  7. premises and equipment
  8. personnal
  9. buying and production
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

strength of using a business plan

A 
\+ useful for monitoring performance 
\+ help avoid risks 
\+ help gain a competitive advantage
\+ beneficial for start up or small business - help gain finance
\+ help to determine cashflow
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

weakness of using a business plan

A
  • expensive and time consuming to make
  • doesn’t guarantee success - guessimates
  • doesn’t take into account changes in economic and market factors.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

cash flow

A

the movement of money in and out the business

inflows - outflows = net cash flow

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

what is a sale forecast

A

is a method of estimating future sales

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

purpose and benefits of sale forecasts

A

enables the business to make decision about

  • productive capacity
  • stock needed
  • staffing levels
  • promotional activity

links to a business’s cash flow, revenue and profits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

factors affect sales forecasts

A
  1. consumer trends - short medium and long term
  2. economic variables
  3. actions of competitors
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

difficulties /weaknesses of sales forecasting

A
  • reduce risk but don’t guarantee success
  • use the past to predict the future (new +old
    business)
  • difficult to predict the long term in a dynamic market
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

extrapolation

A

the most common form of sale forecasting

- predicting the future.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

define profitability

A

is the relationship between profit and revenue and is linked to the size of the business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

calculate gross profit

A

gross profit = revenue - cost of sales

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

calculate operating profit

A

operating profit = gross profit - other operating expenses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

calculate profit for the year

A

profit of the year = operating profit + expenditures items - interest payables

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

calculate gross profit margins

A

gross profit margins = gross profit / revenue x100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

calculate operational profit margin

A

operational profit margin = operational profit / revenue x100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

calculate the profit of the year margin

A

(total revenue - total expenses)/ total revenue = profit of the year margin ( net)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Ansoff corporate strategy

A 
growth strategy
         product - existing/ new  
         market - existing/ new 
market development
market penetration  
product development
diversification
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

market penetration- Ansoff

A

existing product + existing market

focuses on the marketing mix (4 p’s) to increase market shares

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

market development - Ansoff

A

aim to increase sale of the current product portfolio

new - geographical market , product dimensions, distribution channels, pricing policies

relies on understanding local interests, habits, tastes and needs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

product development - Ansoff

A

new product + existing market
significantly modifying a product in an existing market
- expensive research + developments costs + investment in promotions
approaches - developing related products or new model of an existing product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

diversification - Ansoff

A

new product and market
most risky - business will have little to no experience in the market
related = similar product range (forward backward or horizontal integration)
unrelated product = completely different product range (conglomerate integration)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

what does SWOT analysis stand for

A 
S= strength - internal positive 
W= weakness - internal negative
O= opportunities - external positive 
T= threats - external negative
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

define SWOT analysis

A

is a method of analyzing a business, its resources and environment.
It focuses on internal strength and weakness of a business and on key external opportunities and threats.

  • analytical technique to support strategic decision - should be devised around strengths and opportunities.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

how to use SWOT analysis

A

match - strengths with opportunities

convert - weaknesses to strengths

30
Q

what does SWOT analysis aim to achieve

A
  • to see what a business do better than competitors
  • competitors do better
  • where it is making the most of the opportunities available.
  • how a business should respond to change in its external environment
31
Q

what issue can arise from rapid growth

A
  • diseconomies of scale
  • overtrading
  • problems with internal communications
32
Q

define diseconomies of scale

A

the inefficiencies related to growing as a business that can lead to upwards pressure on cost per units.
- lack of control, flexibility and poor motivation

33
Q

define overtrading

A

is when a business experiences cash flow problems as a result of expanding to quickly without sufficient cash in the bank.
- led to the business being unable to function as it will not be able to pay employees, buy stock etc.

34
Q

what is a expected monetary value (EMV) - decision tree

A

This is the financial outcome based on the predicted profit or loss or net cashflow

35
Q

what is net profit - decision tree

A

this is the expected monetary value minus the cost of the decision

36
Q

how to complete a decision tree

A
  1. multiply the expected probability of each decision by the expected profit/loss/net cashflow
  2. add these values of each outcome together to get your EMV
  3. deduct the cost of the decision, To get your net gain
  4. compare the EMV or net gain of each outcome - the higher value choice should be chosen as it has the largest return. cross through the second option
37
Q

what are the two types of corporate timescales

A

short-termism

long-termism

38
Q

define short-termism

A

where firms make decisions to increase financial performance over a short time periods, often at the expense of long term performance

39
Q

define long-termism

A

when a firm concentrates on the overall performance of the business, rather than just its short term financial state.

40
Q

short-termism methods

A
  • reduce prices to entice costumers
  • seek cheaper materials to widen profit margins
  • freeze employees pay
  • paying extra dividends to shareholders
41
Q

long-termism methods

A
  • differentiate their product
  • build and develop a distinctive brand
  • investment in technology and market research
  • reinvest profit to expand capacity
42
Q

define evidence based decision making

A

an approach to decision making that involves collecting information and using it systematically

43
Q

define subjective decision making

A

an approach to decision making where the personal options of the key decision maker influences the course of action chosen.

44
Q

define corporate culture

A

is the spirts, attitudes, behaviors and the other ethos of an organisation

45
Q

define a strong corporate culture

A

a culture where the values, beliefs and ways of working are deeply embedded within the business and its employees

46
Q

define a weak corporate culture

A

when the core values are not clearly defined, communicated or widely excepted by those working for the organisation

47
Q

characteristics of a strong corporate culture

A
  • staff stick together and work together during times of crisis
  • productively
  • staff retention / low labour turnover
48
Q

characteristics of a weak corporate culture

A
  • staff doubting the company’s ethos and principles
  • rigid procedures resented by staff
  • high chances of conflict and clashes occurring
  • high labour turnover
49
Q

what are the four types of company culture

A
  1. power
  2. role
  3. task
  4. person
50
Q

define and state characteristic of power culture

A

where a central source of power is districted between a few individuals.

+has an autocratic leadership and a political atmosphere, works well with an effective leader

  • some employees may lack confidence in the manger as they have loss touch with the day to day of the business.
51
Q

define and state characteristics of role culture

A

is a business that is dominated by rules and procedures that they expected the employees to follow.

+ allow the employee to have clarity on what is expect of them.

  • employees don’t have the change to be involved in decision making.
  • issues with communication as there is a long chain of command
52
Q

define and state characteristics of task culture

A

a focuses on using a teamwork and individual strengths to adapt quickly and problem solve.

+ work together so are able to understand the preceptive of all functioning areas
+ adapt to change well
- supervision is need as employees may get sidetracked.
-conflict between employees.

53
Q

define and state characteristics of person culture

A

is an organisation where the employees are highly skilled and share their expertise to help other individuals.
+ highly motivated staff
- difficult to change - staff may be resistant

54
Q

define labor turnover

A

the proportion of staff leaving the business over a period of time
(a business would want a low labour turnover)

55
Q

how to calculate labor turnover

A

number of staff leaving over a period of time / average number of staff of a period of time x100
= labour turnover %

56
Q

what can cause a labor turnover

A
  • poor recruitment or selection procedures
  • lack of training or promotion opportunities
  • poor motivation or leadership
  • low wages/ poor working conditions
  • large demand of workers in a certain industry - workers can easily swap
57
Q

drawback of high labor turnover

A
  1. recruitment cost and time
  2. training cost/ induction
  3. poor reputation - struggle to employ workers
  4. lower productivity - time for new employees to become efficient (6 months)
58
Q

benefits of labor turnover

A

new ideas and experiences

get rid of inefficient workers

59
Q

what is employee share ownership

A

a HR strategy to improve employee performance,
where employees are paid in shares if the business reaches a important performance target such as growth in revenue, profit or share price

60
Q

benefits of employee share ownership

A

decrease in labor turnover

increased loyalty to business for promotion

61
Q

disadvantages of employee share ownership

A
  • long term strategy - takes up to 3 to 5 years to implicate
  • may not improve the productivity of lazy employees as they rely on their colleges to the work
62
Q

what motivational theorist would have liked employee share ownership

A

Taylor

63
Q

what is the empowerment strategy

A

an HR strategy to improve employee performance - grants employees more authority

involves making better use of the knowledge, experience and creative talents of employees
working environment = positive, motivated and productive

  • led to further delegation as employee can implement their ideas
64
Q

benefits of the empowerment strategy

A

employees feel more valued - greater reasonability + provide opportunity for advancement -asset

increase the efficiency - as workers have control over their working ties

65
Q

drawback of their empowerment strategy

A

training and development - may be required as employees may not have the skilled or knowledge

trust is the large part of the process - worker may need supervision

66
Q

what to motivation strategy is linked to empowerment strategy

A

Maslow

Herzberg - 2 factors = hygiene and motivators

67
Q

define motivation

A

the desire, interest or drive to want to work

68
Q

Taylor - theory of motivation

A

scientific management
money motivates

work should be organized:
- tasks in small and repetitive parts - a payment system that rewards worker

Taylors ideas are not liked by the workers as they feel like machinery and are denied opportunities

69
Q

Mayo - theory of motivation

A

human relations theory

stemmed from on range of experiment into effectiveness
he found more factors affecting performer, than just money

important of interpersonal relations - workers gain satisfaction through freedom and control
- work more efficient as a team

70
Q

Maslow’s - theory of motivation

A

hierarchy of needs
self actualization- self esteem - social need - safety and security need- physical needs
human behavior in the terms of needs - one need to be meet to move onto the next

71
Q

Herzberg - theory of motivation

A

two factor theory

motivation - is doing something because you want to do it - distinguished it from movement.

to something to be rewarded or avoid punishment - motivated workers give their best at all time to solve problems and embrace change.

factors affecting work - motivators and hygiene factors

business (7 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions