Bussiness Sac Three

Question 1

What is a Quantitative Factor

Answer 1

Factors that can be numerically calculated, such as the cost of purchasing or renting a premise

Question 2

What is a Qualitative Factor

Answer 2

Factors that deal with the psychological and emotional aspects of location, such as proximity to public transport

Question 3

What are the key factors when choosing a business location

Answer 3

• Nature and type of business (including desired business image)
• Available budget
• Amount of space required
• Special facilities required
• Access for employees. suppliers and customers

Question 4

What are the three types of resources

Answer 4

• Natural resources
• Labour
• Capital resource

Question 5

Define Natural resource

Answer 5

A material source of wealth such as timber, fresh water or mineral deposits, that occur in a natural state and has economic value.

Question 6

Define Labour

Answer 6

It is the human physical and mental effort used in creation of goods and services. Labour is a primary factor of production.

Question 7

Define Capital resource

Answer 7

It is Human made items used in the production process of goods and services. machinery and equipment are examples of capital resources.

Question 8

What are the three types of factors affecting choice of resources

Answer 8

• Quality
• Reliability
• Social responsibility

Question 9

How does quality affect that decision

Answer 9

Selecting suppliers who provide quality resources will ensure a standard of high quality production is maintained.

Question 10

How does reliability affect that decision

Answer 10

By having suppliers that are reliable and deliver what is required on time enables a business to maintain production and maintained competitive.

Question 11

How does Social responsibility affect that decision

Answer 11

in order to gain and maintain a reputation for being ethically responsible a business must select suppliers who have similarly high standards.

Question 12

What is a business Layout

Answer 12

It is the physical set-up or arrangement of a business. This includes the placement of type of plant and equipment, fittings and fixtures.

Question 13

List two advantages and disadvantages of a Grid Layouts

Answer 13

Advantages:
-Makes efficient use of floors and wall space
-Good for stores carrying large volume of stock
Disadvantages
- Customers may easily miss items
-Not visually exciting or interesting for customers

Question 14

List two advantages and disadvantages of a loop layouts

Answer 14

Advantage:
-Exposes customers to multiple departments and encourages cross shopping
-Encourages buying and impulse shopping
Disadvantages:
-Difficult to locate specific items
-Waste customer time

Question 15

List two advantages and disadvantages of a free-form layout

Answer 15

Advantages:
-Visual diversity
Creates relaxing environment that encourages shopping
Disadvantages:
-Less actual room for products to be displayed
-Lack of define traffic pattern.

Question 16

List two advantages and disadvantages of a Cellular office layout

Answer 16

Advantages:
- Promotes autonomous work
-Employees feel secure in their own space
Disadvantages:
-Difficult for teamwork
-Staff may feel isolated and less involved

Question 17

List two advantages and disadvantages of a Open plan layout

Answer 17

Advantages:
-Promotes teamwork and interaction
-Efficient use of work space. Can accommodate more work space in a smaller area
Disadvantages:
-Lack of confidentiality
-Nose may impact on productivity and concentration levels

Question 18

Define work environment

Answer 18

The surrounding condition in which an employee operates.

Question 19

Define Ergonomics

Answer 19

The study of the relationship between people and their working environment

Question 20

Define a Sole trader

Answer 20

An individual owner of a business, entitled to keep all profits after tax has been paid but liable for all losses.

Question 21

List two advantages and disadvantages of a Sole trader.

Answer 21

Advantages:
-Sole trader has complete control over all aspects of the business
-Sole trader owns all assets and receives all profits
Disadvantages:
-Sole trader is faced with unlimited liability
-Owner is tied to the business; has to make sacrifices and commitments for the business to be successful.

Question 22

Define partnership

Answer 22

Partnership is a legal form of business ownership where two to twenty partners work together, combining their expertise and resources to run the business effectively.

Question 23

List two advantages and disadvantages of a Partnership.

Answer 23

Advantages:
-Risk is shared between partners
-Offers broader access to capital, knowledge, skills and experiences
Disadvantages:
-Liable for any and all debts incurred by others
-Potential for disputes and personality clashes

Question 24

What is a Company

Answer 24

A company is a separate legal entity, completely legally independent to its shareholders. The share holders have limited liability and the company is run by directors and has perpetual succession.

Question 25

What is incorporation

Answer 25

It refers to the process of legally declaring a corporate entity as separate from its owner.

Question 26

Explain what a private company is.

Answer 26

A private company is a company where the share holding is limited (small), with shares being solder privately; often run as a family business; has the words “Proprietary limited” at the end of its company name.

Question 27

Explain what a public company is .

Answer 27

It is a larger company that can have a unlimited number of shareholders; shares can be freely traded on the stock exchange; has the word “limited (Ltd) after its name.