Business - Summer Test Flashcards
What is assurance?
Protection against something that WILL happen - eg death.
What are insurable and non-insurable risks?
Things that can(fire, burglary) or cannot(Acts of God) be insured against.
What is the application form for insurance called?
Proposal form.
What is the fee for taking out insurance?
Premium.
What is the written contract of insurance?
Policy.
Who calculates the premium?
Actuary.
Who looks at the damage and decides on the compensation?
Assessor.
Who finds you the best quote for insurance?
Insurance Broker.
Name and explain the five principals of insurance.
- Insurable Interest: you must benefit from the item and suffer financially if it were gone.
- Utmost Good Faith: you must answer all questions on the proposal form truthfully and enclose all material information.
- Indemnity: you cannot make a profit from insurance.
- Contribution: if an item is insured with more than one insurance company, you cannot claim the full amount from each, but both companies with contribute towards the compensation.
- Subrogation: when an insurance company pays out compensation then they own the lost item and can sue the person who caused the loss.
Name 3 types of life assurance.
- Whole Life Assurance.
- Endowment Assurance.
- Term Life Insurance.
Motor insurance is recquired by law. Name and explain the two types of motor insurance.
- Third Party, Fire and Theft: the insurance company will cover the other people involved in an accident, not the person who caused it. However it will compensate you if your car is stolen or goes on fire.
- Comprehensive: the insurance company covers all people involved in the accident.
Name some factors the premium of your car insurance depend on.
- age.
- gender.
- full licence.
- value of the car.
- purpose/use of car.
- occupation.
What is a claim?
It is when you look for compensation from an insurance company.
What is average clause?
When an item is under-insured and is partially damaged, the client only receives partial compensation.
What are loadings?
They are amounts added on to the premium because of greater risks -eg young male driver.
What are deductions?
They reduce the premium -eg non-smoker.
What is policy excess?
When the insured person has to pay a small amount of the compensation themselves and the insurance company pays the rest.
Name 3 types of business insurance.
- Employer’s Liability Insurance.
- Transit Insurance.
- Public Liability Insurance.
What are fixed and variable costs?
- Fixed costs: do not change according to use -eg rent/mortgage.
- Variable costs: change according to use -eg wages/electricity.
What are the main headings in a business plan?
- Management.
- Marketing.
- Finance.
- Production.
Name 4 types of communication withing a business.
- Oral.
- Written.
- Visual.
•Electronic.
What is the Chain of Production?
Is the term to describe the journey of goods or services through some or all 3 types of production. NO.
What is the Channel of Distribution?
It describes how goods go from the manufacturer to the consumer.
Describe the channel of distribution of a tin of beans.
Manufacturer
|
Wholesaler
|
Retailer
|
ConsumerDescribe the channel of distribution of milk/bread.
Manufacturer
|
Retailer
|
ConsumerDescribe the channel of distribution of custom made items.
Manufacturer
|
Consumer
What is work?
It is any activity that recquires effort that you don’t necessarily get paid for -eg homework.
What is employment?
It is working in exchange for payment -eg teacher.
What is the Labour Force?
It is all the people available for work(even if they are unemployed).
Name 3 rights of the employee.
- To receive a fair wage.
- To work in safe and healthy conditions.
- To receive correct holidays.
Name 3 responsibilities of the employee.
- To do a fair days work.
- To be on time for work.
- To obey all rules and regulations.
Name 3 rewards of self employment.
- You’re your own boss.
- Make all the decisions.
- Keep all the profit.
Name 3 risks of self employment.
- If the business fails, loss of investment.
- May get overworked and stressed.
- May have to work long hours.
What is the organisational structure?
It shows the chain of authority in a firm from the owners down to the junior employees.
Draw the organisational structure.
Shareholders
| (elect)
Board of Directors
| (appoint)
Managing Directors
| | |
Purchasing manager/Production manager/Finance manager/Marketing manager/Human resource manager.
Name 3 rights of the employer.
- To hire suitable staff.
- To dismiss dishonest and unsuitable staff.
- To expect loyalty from staff.
Name 3 responsiblities of the employer.
- To operate a safe and healthy workplace.
- To treat employees equally.
- To pay agreed wage.
What is demarcation.
It is being asked to do something outside your range of duties.
What is time rate?
Being paid by the hour.
What is piece rate?
Being paid according to the amount of goods they produce.
What commission?
Being paid according to the number of goods sold(they usually have a small, agreed wage with commission added on).
What is insurance?
Protection against something that MIGHT happen -eg fire, car accident.
