general knowledge

Question 1

job production

Answer 1

• business produces products that meet specific requirements of customer

Question 2

advantages of job production

Answer 2

• higher price can be charged
• products are likely to be high quality
• variety of work will ensure moral

Question 3

disadvantage of job production

Answer 3

-expensive to produce as each product is different
- employees need to be skilled and may require training

Question 4

flow production

Answer 4

large number of identical products in a continuous production line. e.g tv

Question 5

flow production advantages

Answer 5

• large volume made
  -employees can specialise easily
• large quantities reduce cost per unit

Question 6

disadvantages of flow production

Answer 6

• high initial costs of machinery to maintain business
• lack of flexibility
• demotivated employee
• increased risks

Question 7

batch production

Answer 7

similar times being produced together.
produced in batches/ groups

Question 8

advantages of batch production

Answer 8

-cost saving by buying in bulk
-still gives customer choice
-products can be worked on by specialist staff at each stage

Question 9

disadvantages of batch production

Answer 9

• takes time to switch production of one batch to another
  -requires business to maintain higher stocks of raw materials
  -repetiveness can demotivate

Question 10

e commerce

Answer 10

buying and selling of products and services online

Question 11

face to face selling

Answer 11

when the buyer and seller meet in person

Question 12

face to face sales advantages

Answer 12

• allows customer to gain deeper knowledge of product
• allows seller to provide a better explanation to the buyer

Question 13

face to face selling disadvantages

Answer 13

• may not be convenient for customers
  -if customer bargains for better deal profits may be reduced
• retailer costs are high if expensive dhops are needed

Question 14

telesales

Answer 14

selling on the phone

Question 15

advantages of tele sales

Answer 15

• customers gain deeper understanding
• may cost less than selling from a shop

Question 16

disadvantages of tele sales

Answer 16

• costs involved such as buying warehouse to store goods, transport
• seller can’t always answer the phone , bad reputation

Question 17

consumer law def

Answer 17

protects customer from being exploited by business

Question 18

key points it consumer rights act legislation

Answer 18

goods must be as described
appropriate quality
standard if safety e.g cars
30 days to reject the item you’ve bought and get a refund

Question 19

consumer rights act on purchase of goods

Answer 19

must match description
fit for purpose
satisfactory quality

Question 20

factors effecting business location

Answer 20

-costs
-proximity to the market
-proximity to labour
-proximity to materials
-government

Question 21

logistics

Answer 21

management of transportation and storage of goods

Question 22

procurement

Answer 22

management of purchasing within a business

Question 23

suppliers

Answer 23

businesses who supply goods/ services to the business

Question 24

process (role) of procurement

Answer 24

1.identify goodd and services to buy
2. choose suppliers( quality, cost)
3. ordering goods and services (amount)
4. receiving deliveries from suppliers

Question 25

what info is in the finance department

Answer 25

profit
loss
break even
ARR

Question 26

why is finance important for a business

Answer 26

• start up costs
• expansion costs
• ewipment costs ( depreciation)
• day to day expenses

Question 27

what is the finance function

Answer 27

will consider financial decisions such as market research and see if it can be funded

Question 28

internal finance

Answer 28

within the business
owners capital
retained profit
sale of assets

Question 29

external finance

Answer 29

-overdraft
-trade credit (business buys goods and use them straight away and pay back later) usually interest free but good relationship w supplier neede)
-bank loan
- crowd funding

Question 30

interdependent nature of business

Answer 30

link between areas of the business that are considered when business people make decisions, risk and reward and use of financial info to aid decision making