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Year 12 > Buisness > Flashcards

Buisness Flashcards

1
Q

What is a typical recruitment procedure

A

Draw up a job description
Design a person specification
Advertise the post and invite applicants
Sort applicants and draw up a shortlist
Interviews applicants who meet the criteria stated in the ad
Select successful applicant and offer the job
Complete the contract of employment

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2
Q

What are the 3 main recruitment documents

A

Job description
Person specification
Contract of employment

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3
Q

What are 2 types of recruitment

A

Internal and external

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4
Q

What are 6 methods of selection

A 
Testing 
Curriculum vitae (cv)
Presentation 
Application letter
Interview 
Application form
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5
Q

What are 4 main obligations expected from all parties

A

Honesty
Objectivity
Fairness
Confidentiality

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6
Q

What is the importance of having motivated employees

A

If employees are motivated they will have increased overall productivity which leads to improved profitability of the business

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7
Q

What is the importance of having well-trained employees

A

New employees will be properly inducted into the business
Employees will have updated skills and will be equipped to cope with constantly changing technology
Employees will become more competitive and make more money

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8
Q

What are some signs of business success

A

Increasing profit
Expansion
Good customer reviews
Word of mouth recognition

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9
Q

What are some signs of business failure

A

Loss of profit
Poor cash flow
Loss of customers
Bad customer reviews

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10
Q

What are ways in which a business can grow organically

A

Reinvest it’s profits
Expand its product range
Increase sales activity

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11
Q

What are two types of finance

A

Internal and external

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12
Q

What are 2 types of growth

A

Internal (organic) and external

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13
Q

What are ways in which a business can grow externally

A

Takeover-when one business buys control of another business

Merger-when two businesses voluntarily join two form one larger business

Franchising-when a business gives rights for a person or people to use their idea to create another shop somewhere else

Integration-this is when 2 businesses become one achieved through mergers and takeovers

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14
Q

What are 3 types of integration

A

Horizontal
Vertical
Lateral

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15
Q

What are some internal sources of finance

A 
Debt collection 
Sale of fixed assets 
Sale of inventory 
Retained profits
Owner’s investment
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16
Q

What are some external sources of finance

A 
Government grants
Trade credit 
Mortgage 
Hire purchase 
Leasing 
Share issue 
additional partners 
Bank loan/overdraft
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17
Q

What are 3 advantages of internal sources of finance

A

No interest
The affairs of the business are kept private
Does not have to be repaid

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18
Q

What are 3 advantages of external sources of finance

A

Larger sums of money are available
The money is usually available more quickly
The borrower has the use of the asset while paying for it

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19
Q

What is a disadvantage of internal sources of finance

A

There may not be enough money available

20
Q

What are disadvantages of external sources of finance

A

It is more expensive as interest has to be paid

The lender requires security in case of non-payment

21
Q

What is the purpose of a cash flow

A

Forward planning
It shows when finance is required
It shows when loans can be repaid
It sets targets for the business

22
Q

What are some consequences of incorrect forecasting

A

Inventory levels may be inaccurate
Bank loans may be required
The business may have to close

23
Q

What is the cost of sales and inventory equation

A

Opining inventory + purchases - closing inventory

24
Q

What is gross profit/loss

A

The difference between the money the business makes from the sales rev and the cost of sales

25
Q

What is expenses

A

Examples are rent, rates, electricity, telephone, salaries and heating

26
Q

What is net profit/loss

A

It’s the true profit of the business for that year and takes into consideration all the expenses which have to be paid by the business

27
Q

What are non-current assets

A

Assets which are more permanent eg machinery

28
Q

What are non-current liabilities

A

Liabilities that are borrowed for a long time eg bank loans

29
Q

What are current assets

A

Assets which can be quickly exchanged for cash eg inventory

30
Q

What are current liabilities

A

Liabilities which need to be paid immediately eg trade payables

31
Q

What is the gross profit equation

A

Sales rev - cost of sales

32
Q

What is the net profit equation

A

Gross profit- expenses

33
Q

What does a statement of financial Position record

A

The businesses Assets and liabilities
The owners capital
The owners drawings
The net profit from the income Statement

34
Q

What is the gross profit percentage equation

A

Gross profit/sales rev x 100

35
Q

What is the net profit percentage equation

A

Net profit/sales rev x 100

36
Q

What is the roce equation

A

Net profit/capital employed x 100

37
Q

What does roce mean

A

Return on capital employed

38
Q

What is the working capital ratio equation

A

Current assets/current liabilities

39
Q

What are fixed costs

A

Costs that aren’t affected by the quantity of goods produced or sold or by the scale of services rendered

40
Q

What are variable costs

A

Costs that are affected by the quantity of goods produced or sold or by the scale of services rendered

41
Q

What is the break even point

A

its where its total costs equal the total of its sales revenue. its the minimum point at which the business can survive.

42
Q

What is the break even equation

A

total fixed costs/selling price per unit - variable price per unit.

43
Q

What is the significance of the break even point

A

it can show
the amount of goods which must be sold in order to make a profit
the level of costs which the business can bear
the price which needs to be charged for goods
how changes in the price would affect the business’s profits.

44
Q

What is the gross profit percentage

A

The level of gross profit which a business has made on the sales rev

45
Q

What is the net profit percentage

A

The amount of net profit which is made on sales rev

46
Q

What is roce

A

The profitability of the business by comparing the net profit with the capital invested by the owners

47
Q

What is the working capital ratio

A

The relationship between a businesses current assets and current liabilities

Year 12 (7 decks)

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