Business Mocks 2 Flashcards
What is a sole trader?
A sole trader is a business owned and operated by one person.
Name one advantage of being a sole trader.
The owner keeps all the profits.
What is internal recruitment?
Internal recruitment is when a business fills a vacancy by hiring someone who already works for the company.
Give one advantage of internal recruitment.
It is quicker and cheaper than external recruitment.
What is induction training?
Induction training introduces new employees to the business, its policies, and their role.
Why is induction training important?
It helps new employees settle in quickly and understand company expectations.
What is a flat structure?
A flat structure has few levels of management and a wide span of control.
Name one advantage of a flat structure.
Communication is faster because there are fewer levels.
What are interest rates?
Interest rates are the cost of borrowing money or the reward for saving money.
How might an increase in interest rates affect a business?
It increases the cost of borrowing, which can reduce investment.
What are fixed costs?
Fixed costs are costs that do not change with the level of output, like rent or salaries.
Give an example of a fixed cost.
Rent.
What is organic growth?
Organic growth occurs when a business grows by expanding its own operations.
What is inorganic growth?
Inorganic growth happens through mergers or acquisitions.
What is delayering?
Delayering involves removing levels of management to flatten the organizational structure.
Give one benefit of delayering.
It reduces costs by having fewer managers.
What is a person specification?
A person specification outlines the skills, qualifications, and experience needed for a job.
Why is a person specification important?
It helps ensure the right candidate is chosen for the role.
Name the four factors of production.
Land, labor, capital, and enterprise.
What does the factor ‘enterprise’ refer to?
The ability to organize resources and take risks to start a business.
What is a part-time contract?
A contract where employees work fewer hours than a full-time schedule.
Name one advantage of part-time contracts for businesses.
They provide flexibility to meet changing demand.
What is off-the-job training?
Training that takes place away from the workplace, such as at a college or training center.
Name one advantage of off-the-job training.
Employees can gain new skills and knowledge without workplace distractions.
What is unit cost?
Unit cost is the cost of producing one unit of a product.
How do you calculate unit cost?
Total cost divided by the number of units produced.
What is total cost?
Total cost is the sum of fixed costs and variable costs.
If fixed costs are £500 and variable costs are £300, what is the total cost?
£800.
What is Just in Time (JIT)?
JIT is a stock management system where materials are ordered and received only when needed.
Name one advantage of JIT.
It reduces storage costs.
What is customer service?
Customer service is the assistance and advice provided to customers before, during, and after a purchase.
Name one benefit of good customer service.
It can improve customer loyalty.
What is Total Quality Management (TQM)?
TQM is a continuous approach to improving product quality and customer satisfaction.
Name one principle of TQM.
Involving all employees in quality improvement.
What is a financial method of motivation?
A way to motivate employees through financial rewards, such as bonuses or pay rises.
Name one example of a financial method of motivation.
Profit sharing.
What is an exchange rate?
The value of one currency compared to another.
How might a weaker pound affect UK exporters?
UK goods become cheaper for foreign buyers, potentially increasing exports.
What is flow production?
Flow production involves producing items continuously on an assembly line.
Name one advantage of flow production.
It allows for high volumes of production, reducing unit costs.
