business Flashcards
how do you calculate acid test ratio
current assets- stock/ current liabilities
what is consumer protection
makes it illegal for suppliers to make claims about their product which are inaccurate
also criminal offence if product doesnt reach certain health and safety levels
what is employee protection
employees have the right to receive employment contract get maternity leave and sick pay join a trade union receive minimum wage `
what was environmental protection
prevent dumping
correct waste disposals
what is competition policy
promote competition but protect consumers
how do you work out capacity utilisation
current output/ max output X 100
what is quality assurance
takes into account customer needs and employees looking at every stage of the production process
staff need to be committed for it to be successful
what is TQM
employees involved in production process and take responsibility of for quality
how does quality management create a competitive advantage
creates loyalty
enhance reputation
reduce waste
premium pricing
what is buffer stock
level of output kept just in case
there may be a problem with delivery
this means the business can carry on with production
political external influences `
government actions that might affect a business
for example new tax which will affect business profits
environmental influences
anything around the business that affects them eg tourism, geographical location, weather
also whether the business is sustainable
what is a mission statement
inspirational versions of corporate aims
