business key info

Question 1

what is integration?

Answer 1

when 2 or more businesses join together.§

Question 2

what is franchise?

Answer 2

the sale of rights to use/sell a product by a franchisor to a franchisee.

Question 3

what is a franchisee?

Answer 3

An individual or Business that buys rights to trade under a particular business name.

Question 4

what is a franchisor?

Answer 4

A business or individual. who sells the rights to another business to operate a franchise

Question 5

2 advantages of a franchisee opening as a part of a franchise?

Answer 5

Given support by the franchisor
lESS INVESTMENT RECQUIRED IN THE START UP STAGE

Question 6

What is outsourcing?

Answer 6

Getting another business or organisation to provide the service for you. e.g. walkers getting mccoys to make their crisps.

Question 7

what is purchasing economies of scale?

Answer 7

when big businesses negotiate discounts for bulk buying.

Question 8

what is technical economies of scale?

Answer 8

where businesses can afford to invest in expensive and specialist high quality machinery.

Question 9

How is unit cost calculated?

Answer 9

Total cost divided by output

Question 10

what are 2 benefits of drawing a business plan?

Answer 10

Provides a logical structure to thinking about the business
Can be used to measure actual performance.

Question 11

What are the 5 parts of a business plan?

Answer 11

The idea
Aims and Objectives
Target market
Financial forecasts
The marketing mix

Question 12

Define efficiency-

Answer 12

Efficiency is how well a business uses its resources to produce products.e.g. Maximising outputs whilst minimising inputs

Question 13

Define job production-

Answer 13

A type of production where the product is produced to meet specific customer requirements

Question 14

Define flow production

Answer 14

A method of production where identical, standardised items are produced on an assembly line

Question 15

Define average unit cost

Answer 15

The cost of producing one product or unit

Question 16

Define lean production

Answer 16

Where businesses aim to make production more efficient. it aims to reduce waste

Question 17

Define just in case production

Answer 17

Where there are extra stocks at every stage of production

Question 18

Define just in time production

Answer 18

A form of lean production, inputs arrive and outputs are produced just when they are needed

Question 19

Define kaizen

Answer 19

Constant small improvements to its business process

Question 20

Define procurement

Answer 20

The process of finding and buying the supplies a business needs so it can produce or sell final goods and services to customers

Question 21

What is logistics?

Answer 21

A process which plans the distribution of goods and services from when they are received to when they’re delivered

Question 22

Define quality

Answer 22

A product is of good quality if it meets the needs and expectations of the customer

Question 23

What is quality assurance

Answer 23

A system of agreeing and meeting quality standards at every stage of production in an organisation

Question 24

2 ways quality can be judged

Answer 24

Durability
Consistency
Value for money

Question 25

What is customer service

Answer 25

Methods used by the business to look after its current and future customers

Question 26

Define interest rate

Answer 26

The rate charged for borrowing money over a period of time, or a reward for saving money