Bowton Spice Bazaar

Question 0

What as some advantages of keeping stock?

Answer 0

Stock is available when required

Running out of stock could cause interruptions so keeping stock avoids this

Question 1

What are the 4 methods of production?

Answer 1

Job production
Batch production
Process production
Flow production

Question 2

What are some disadvantages or keeping stock?

Answer 2

It costs to hold stock

Some stock could be perishable and cannot be kept for long

Question 3

What is just-in-time stock control?

Answer 3

No stock is held and raw materials are only ordered when needed

Question 4

What is a skilled worker?

Answer 4

A skilled worker is someone that can do specialised jobs and needs no specialist training, they may also need to be paid more and may not be available locally

Question 5

What is a unskilled worker?

Answer 5

An unskilled worker cannot take on more skilled tasks and will be paid less then a skilled worker

Question 6

What is break-even?

Answer 6

Break-even is the point at which the business makes no profit and no loss

It is the point at which revenue=costs

Question 7

What is the formula for break-even?

Answer 7

Break-even output=total fixed costs/selling price-variable costs

Question 8

What are the uses of break-even?

Answer 8

Planning business start-up
To support borrowing requirements
To make decisions about cost and revenue

Question 9

What are the limitations of break-even?

Answer 9

The figures are forecasts
The figures only relate to one product
Assumes all output is sold

Question 10

What is the margin of safety?

Answer 10

The margin of safety is the amount of sales above break-even point or the amount by which sales could decrease before the product becomes unprofitable

Question 11

Why does a business need finance?

Answer 11

Start up
Growth
Buy new equipment
Move to a new premises
Cash flow
Research

Question 12

What are the 2 sources of finance?

Answer 12

Internal to business

External to business

Question 13

What are some internal sources of finance?

Answer 13

Cash in a bank
Retained profit
Owners investigating in the business
Sales of assets

Question 14

What are some external finance sources?

Answer 14

Overdraft
Trade credit
Bank loan
Lease
Hire purchase
Grants
Mortgage
New partners

Question 15

What is a cash flow forecast?

Answer 15

Cash flow forecasting or cash flow management is a key aspect of financial management or a business, planning it’s future cash requirements to avoid a crisis of liquidity

Question 16

Why do business forecast cash flow?

Answer 16

Businesses need to plan
Part of the planning will involve spending money
They need to know what cash will be available and when
They need to know if they will have to source extra finance

Question 17

What are some reasons businesses are concerned about society and the environment?

Answer 17

Ethnical reasons
Reputation
Legal requirements
Efficiency

Question 18

Ways a business can become more green

Answer 18

Switch off lights and equipment
Reduce, reuse, recycle
Buy recyclable materials
Use fuel-efficient vehicles
But locally
Reduce water use
Insulate buildings
Use solar and wind power

Question 19

Ways to be ethical

Answer 19

Trade fairly
Buy from ethical suppliers
Work with local communities

Question 20

What are the impacts or recession?

Answer 20

People buy less luxury goods

Companies with debt find it hard to keep up with loan payments

Question 21

What is globalisation?

Answer 21

Globalisation is where businesses in different countries become interconnected

Question 22

What are the benefits of globalisation?

Answer 22

Larger markets for businesses to buy from and sell to may lead to economies of scale
More employment opportunities for workers

Question 23

What are exchange rates?

Answer 23

When trading with different countries, businesses are affected by exchange rates.