Business Studies GCSE Flashcards
Which of the following is a benefit to an entrepenuer of operating as a sole trader
A) can sell shares
B) easy to set up
C) limited liabilibity
D) many owners
B) easy to set up
Which of the following is a method of internal recruitment
C) advertising on a noticeboard in the staffroom
Which of the following describes when induction training should take place
A) when employees first join the business
Which is correct for a flat organisational structure
D) short chain of command
Which is a likely effect of a decrease in interest rates
A) borrowing will be cheaper
Which of the following is an example of a fixed cost
A) interest payments
Explain one method of growth used by a business when expanding organically or externally
Can expand internally through mergers
This helps the business access new markets and increase its market share quickly
Explain one way a person specification can be used as part of recruitment process
Outlines skills and qualifications for the job
Helps employers choose the best people if they match job needs
Explain why a business uses delayering
Reduce costs as less managers and supervisors employed
Explain the meaning of a term need using an example
A need is a basic human requirement such as food and water
Explain one disadvantage to a business of expanding through external growth
Diseconomies of scale and unit costs increase
Identify and explain 2 factors of production other than land
Labour - people working in the business
Capital - money or equipment to provide the good and services
Explain one benefit to a business of employing workers on a part-time contract
Business saves money as they only pay employees for the hours they work
Explain one benefit of growth to a business
Economies of scale as the business increases its output unit costs fall
Elaine ordered 20 hair treatments for £300
Calculate unit cosst for each treatment
300 ➗ 20 = £15
The supplie offered 35% discount
Calculate unit cost of 120 orgainc hair treatments with discount
120 x 15 = £1800
35/100 x 1800 = £630
1800 - 630 = £1170
One benefit to a business providing a high level of customer service
Increases cutomer loyalty
Explain one benefit to Bootmills Ltd using total quality management
Improved product quality leads to higher customer satisfaction
Calculate percentage chqnge in value of the pound against value of the euro December to March
1.17 - 1.20 = -0.03€
-0.03€ ➗ 1.20 x 100 = -2.5%
Answer is 2.5%
Analyse 1 impact of the falling value of the pound on the profits of Bootmills Ltd
Importing goods from other countries is more expensive.
This increases production costs
Higher costs = less profit
Ltd is in a competetive market, raising prices may lead to losing customers furthermore reducing profits
Overall it’s negative impact
Advantages of just in case stock control
Ready for extra demand - business won’t run out of stock if more customers buy than expected
No delays - if problem with suppliers production won’t stop
Always having stock keeps customers satisfied
Cheaper bulk buying
Disadvantages of just in case stock control
Expensive storing extra stock
Items could go out of date
Money spent on stock could be used elsewhere
Harder to manage a lot of stock
1 factor which would be considered when making a decision to change supplier
Cost - business will look for cheaper supplier
If supplier offers lower prices this saves money and increases profits
But business also needs to think about quality of goods as cheap prices may lead to lower quality leading to complaints or returns
If new supplier is cheaper but provudes good quality, the business saves money without losing customers
Explain how 1 financial method of boots Ltd to motiavte employees
Profit sharing awarded to employees
Employee turnover is low
Employees benefit from an increase in the business’s profits
Increases loyalty as they feel valued and rewarded
Boosting productivity as high profits equals high reward
Advantages flow production
Increase efficiency as more products made at a time
Lowers costs per unit allowing them to increase profit margins
Disadvantages of flow production
Expensive as require heavy machinery
Repetitive tasks reduce employee morale leading to high staff turnover
Low quality products
