all units

Question 1

sampling methods

Answer 1

random sampling
stratified random sampling
quota sampling

Question 2

confidence levels and intervals

Answer 2

confidence levels - how accurate research finding are
confidence intervals - possible range of outcomes for a given confidence

Question 3

PED

Answer 3

elastic = less than -1 if price increases demand decreases
inelastic = between -1 and 0 price is proportionate to demand

Question 4

IED

Answer 4

less and -1 = elastic
between -1 and 1 inelastic
above 1 elastic

below 0 = inferior
between 0 and 1 normal goods
above 1 luxury

Question 5

marketing mix

Answer 5

price place product promotion physical environment process people

Question 6

price methods

Answer 6

dynamic pricing = flexible pricing based on market
skimming = setting price high
penetration = setting price low
cost plus

Question 7

pestle analysis

Answer 7

political = trade , tax , political issues changes in leadership
economic = inflation , interest rates , unemployment levels
social = lifestyle trends , age , consumer behaviour
technological = developments in technology
Legal = consumer law health and safety policies
environmental = climate change
competition

Question 8

operational objectives

Answer 8

objectives businesses set in order to produce most efficiently

Question 9

operations targets

Answer 9

reduced unit costs
ethical / envirionmental considerations
quality targets
added value

Question 10

capacity utilisation

Answer 10

measures the extent of which capacity is used
actual output / max output x 100

Question 11

economies of scale

Answer 11

bulk buying
technical - invest in new technologies
specialisation of work force splitting task into separate tasks
marketing - spread advertising and marketing over a large output
managerial - employ specialists to supervise

Question 12

lean production

Answer 12

practices that reduce waste (JIT)

Question 13

other forms of production

Answer 13

just in case
time based management
cell production
kaizen

Question 14

inventory control diagram

Answer 14

lead time - time it takes from order to arrival
re-order level level of inventory which triggers a re order
buffer level - minimum level of stock in case of emergency

Question 15

profit

Answer 15

Gross profit = revenue - VC
operating profit = gross - FC
profit for the year = operating - other costs + tax

Question 16

a variance

Answer 16

difference between budgeted figure and actual figure
favourable variance = when actual is better than budgeted
adverse = not better

Question 17

break even output

Answer 17

where revenue = costs
fixed costs / price - VC

Question 18

contribrution per output

Answer 18

price - VC

Question 19

sources of finance

Answer 19

retained profit
debt factoring
trade credit
crowdfunding
sale of assess
venture capital
overdraft
bank loan
share issue

Question 20

hard and soft HR

Answer 20

hard - treats employees as a resource
soft - treats employees as most valuable resource

Question 21

labour productivity

Answer 21

output / number of employees

Question 22

labour cost per unit

Answer 22

labour costs / output

Question 23

employee costs as percentage of turnover

Answer 23

employee costs / sales turnover x 100

Question 24

labour turnover

Answer 24

staff leaving / number of staff x 100

Question 25

organisational structures

Answer 25

Functional - organisations divided into departments
product based - divided into product it produces
regional - divided based on geographic regions
matrix - organisations is both functional and product based

Question 26

delegation

Answer 26

passing authority to subordinate

Question 27

decision making

Answer 27

centralised - decisions made between upper employees
decentralised - all employees

Question 28

theories of motivation

Answer 28

Taylor- money is the only motivator
Maslow - hierarchy of needs
Herzberg - hygienic and other factors