business units 1-5 mastery Flashcards
A business organization that operates in two or more countries is referred to as a:
Multinational company
Which of the following is a potential benefit of multinational companies for host countries?
Development of local infrastructure
Which of the following is not a benefit of external growth?
Less risky
With regard to the Ansoff matrix, what is the type of growth strategy that requires promoting brand loyalty to encourage repeat customers and to pull customers away from the competition? (It focuses on selling existing products in an existing market.)
Market penetration
Which of the following is a benefit that larger companies might gain over smaller companies?
Economies of scale
____ are interested in the returns they receive on their investment in the company.
Shareholders
A decision to introduce new machinery at a refinery could reduce the number of jobs but lead to higher profits. Which stakeholder groups have the most conflicted interests in this scenario?
Owners and employees
Which of the following depicts a policy that is aligned with corporate social responsibility?
Using technology in the manufacturing process that is environmentally friendlier but more expensive
What are positive factors, external to the business, that are considered when using a SWOT analysis?
Opportunities
What might be the conflict between the management of a publicly-held company and its owners when deciding how to use the company’s profits?
Manager wishes to reinvest profits in the business while owners aspire to earn higher returns or dividends.
Which of the following is true of a STEEPLE analysis?
It analyzes company opportunities and threats.
When the job someone is doing is no longer required, and the business eliminates the position.
Redundancy
A form of industrial action where workers follow the rules of work, but do no more than that; reduces output to put pressure on employers to negotiate.
Work-to-rule
A large scale refusal to work any additional hours beyond the specified contracted hours.
Overtime ban
A situation where management blocks workers from entering the workplace; a negotiation tactic to put pressure on workers to compromise in labour negotiations.
Lock-out
An advantage of informal communication is:
Faster
In Handy’s Gods of Management Theory, what type of culture does this diagram represent?
Power culture
Cultural clashes can result from the following type of EXTERNAL growth:
Acquisitions
Which motivation theory claimed there are entirely different reasons for job dissatisfaction and job satisfaction?
Herzberg’s Two-Factor Theory
Which motivation theory claimed that people have different needs, and some needs have to be satisfied before others can be met?
Maslow’s Hierarchy of Needs Theory
A leadership style where a leader actively seeks employee participation in decision-making.
Democratic
A leadership style where the leader retains control of all decision-making and does not delegate.
Autocratic
A leadership style whereby the head of an organisation treats employees as though they are part of the family; loyalty and obedience are expected in return.
Paternalistic
A leadership style whereby the leader ‘lets go’ of decision-making and allows members of the group or team to make decisions.
Laissez-faire
When the job someone is doing is no longer required, and the business eliminates the position
Redundancy
A flat (horizontal) organizational structure has:
A centralized decision process
When a business releases an employee from their job
Dismissal
The percentage of workers leaving the business in a period of time
Labor turnover
The process of motivating workers in order to minimize labor turnover
Retention
The process of seeking, finding and hiring people for a position in an organization
Recruitment
Actual income lower than budget is a ____ variance.
Adverse
Which investment appraisal technique calculates the time required for an investment to generate sufficient profit to cover the cost of the initial investment?
Payback period
Which of the following will improve net cash flow?
Decrease cash outflows
This ratio measures the average number of days it takes a company to collect its short-term debts from customers to whom it has sold goods.
Debtor days
Which of the following is a strategy to improve the gross profit margin?
Lowering the cost of goods sold
Cash is:
A current asset.
Which of the following are examples of equity?
Share capital and retained profit
Total variable costs in a restaurant will ______ when the sales quantity increases.
Increase
What is a benefit of equity finance?
No interest is charged
Which of the following is an example of a capital expenditure?
Purchasing land
What is a form of external growth where two businesses create, own and operate a third organization?
Joint venture
What is the most expensive and highest risk form of international expansion?
Direct investment
In which stage of the product life cycle is a company most likely to use penetration pricing?
Introduction
Which of the following is an example of above the line promotion?
Television advertising
A pricing strategy where a product is sold at a loss to attract customers.
Loss leader pricing
A pricing strategy where the business sets a very low price on a new product or service to encourage customers to buy it; later the price is increased.
Penetration pricing
A pricing strategy where the price charged for the product reflects a markup added to the direct and indirect costs of production.
Cost-plus (markup) pricing
A pricing strategy where a business sets the price of its products higher to create the impression that the products are higher quality or value than their lower-cost equivalents.
Premium pricing
A pricing strategy where a business sells a product or service at such a low price that other businesses cannot compete and are forced to leave the market; illegal in many countries.
Predatory pricing
In a linear regression model that compares spending on marketing to sales revenue, what is the dependent variable?
Sales revenue
Which of the following is an example of primary market research?
Focus groups
If, as the value of the independent variable (advertising costs) increases, the value of the dependent variable (e-commerce sales) increases, what type of correlation is this?
Positive correlation
Market share: low, Market growth: high
Problem childs
Market share: high, Market growth: high
Stars
Market share: low, Market growth: low
Dogs
Market share: high, Market growth: low
Cash cows
What is the term for a system that collects, collates, coordinates, controls and channels information within an organisation?
Management information system (MIS)
What type of innovation was represented by OpenAI’s release of ChatGPT in December 2022?
Disruptive
A fire drill is an example of ___.
An element of a contingency plan
What is the term for an operations management strategy where raw materials or other inputs are ordered and delivered immediately before their use, so that stock (inventory) can be minimized?
Just-in-time production
What is break-even quantity?
The quantity of output where total revenue equals total cost
What is the name for the geographic position of a business; where it is positioned or sited?
Location
What is: LFT (current task) - EST (current task) - duration (current task)?
Total float
What is quality assurance?
Strategies to prevent defects and improve products.
What type of production method involves the production of large quantities of goods that can be adjusted to customer specifications?
Mass customization
