Keywords

Question 1

What is opportunity cost

Answer 1

Opportunity is the loss of the next best alternative when making a decision

Question 2

Define Specialisation

Answer 2

Specialisation occurs when a person or organisation concentrates on what they are best at

Question 3

Define Added Value

Answer 3

Added value is the differe ce between the cost of materials bought in and selling price of the product

Question 4

What is primary sector

Answer 4

This involves the use/extraction of natural resources

Question 5

What is Secondary sector

Answer 5

This involves the manufacture of goods using the resources from the primary sector

Question 6

What is Teritary sector?

Answer 6

This consists of all the sources provided in an economy

Question 7

Define Primary Sector

Answer 7

Where private individuals own and run business ventures

Question 8

Define public sector

Answer 8

Where governement owns and runs buisness ventures

Question 9

Why do government want to help new startups?

Answer 9

They provide employement
They contribute to the growht of the economy
They can also if the buisness is succesful, contribute to the exports of the country
Start ups often produce fresh ideas and technologies into buisness industry

Question 10

Define private limited company

Answer 10

One or more owners who can sell its shares to only the people known existing shareholders

Question 11

Define Public limited company

Answer 11

Two or more owners who can sell its shares to any individual/organisation in general public through stock exchange

Question 12

Define Franchisor

Answer 12

The owner of a buisness grants license to another person or buisness to use their buisness idea

Question 13

Define Joint venture

Answer 13

Join Venture is an agreement between two or more buisnesses to work together on a project

Question 14

Define Stakeholder

Answer 14

Stakeholder is any person or group that is interested in or directly affected by the performance

Question 15

Define Shareholder

Answer 15

These are the risk takers of the buisness. They invest capital into the buisness to set up and expand it

Question 16

Define Job Satisification

Answer 16

The enjoyment derived from the feeling that you have done a good job

Question 17

Define Job rotation

Answer 17

Involves workers swapping around jobs and doing each specific task for only a limited time and then changing around again

Question 18

Define Job enlargement

Answer 18

Where tasks of similar levels of work are added to workers job description

Question 19

Define Job enrichment

Answer 19

Involves tasks that require more skill and responsibility to a job

Question 20

What is organisational structure?

Answer 20

Structure refers to the level of management and division of responsibilites whithin a buisness

Question 21

What is Span of control

Answer 21

Span of control is the number of subordinates working directly under a manager in the organisational Strucutre

Question 22

What is chain of command

Answer 22

Chain of command is the strucutre of an organisation that allows instructions to be passed on from senior managers to lower levels of management

Question 23

Define delegation

Answer 23

Delegation is giving subordinates the authority to perform tasks

Question 24

What is Autocratic style?

Answer 24

Autocratic style is where the managers expect to be in charge of the buisness and have their orders followed

Question 25

What is Democratic style

Answer 25

Democratic style is where managers involve employees in the decision making and communication is two way from the top to the bottom

Question 26

What is laissez Faire?

Answer 26

Lazissez faire style makes the broad objectives of the buisness known to employees and leaves them to their own decision making

Question 27

Define Trade Union

Answer 27

Trade Union is a group of workers who have joined together to ensure their interest are protected

Question 28

Define Job analysis

Answer 28

A job analysis identifies and records the tasks and responsbilities related to the job

Question 29

What internal recruitment

Answer 29

is when a vacancy is filled by an exisitng employee in the buisness

Question 30

What is induction

Answer 30

An introduction given to a new employee explaining the firms activities, procedures, and introducing them to fellow workers

Question 31

Define Redundancy

Answer 31

When an employee is no longer needed and so loses their work, though not to any fault of theirs

Question 32

Define Niche marketing

Answer 32

identifiying and exploiting small segment of a larger market by developing products to suit it

Question 33

What is Mass marketing

Answer 33

Selling the same product to the whole market with no attempt to target groups

Question 34

What is Product Oriented

Answer 34

Product oriented buisness- Such firms produce the product first and then tries to find a market for it

Question 35

What is Market oriented buisness

Answer 35

Such firms will conduct market research to see what consumers want and then produce goods and services to satisfy them.

Question 36

What is Market research

Answer 36

is the process of collecting, analysing and intrepreting information about a product

Question 37

What is Market skimming

Answer 37

Setting a high price for a new product that is unique or very different from other products on the market

Question 38

Define Penetration pricing

Answer 38

Setting a very low price to attract customers to buy a new product

Question 39

What is Competitve Pricing

Answer 39

Setting a price to that of competitors products which are already available in the market

Question 40

Define Cost plus Pricing

Answer 40

Setting a price by adding a fixed amount to the cost of making the product

Question 41

Define Promotional Pricing

Answer 41

Setting the price of a few products at below cost to attract custumers in the shop in hope they will buy it

Question 42

Define Price elasticity

Answer 42

The responsiveness of the quantity demanded for it to change in its price

Question 43

What is Return on Capital employed

Answer 43

Amount of Profit made for each dollars invested

Question 44

Define Working capital

Answer 44

How much liquid assets a buisness has to pay its day to day debts

Question 45

Stages of new product development

Answer 45

1Generate ideas 2 Select the best ideas for further research 3 Decide if the firm will be able to sell enough units for product success 4 Develop a Prototype 5 Test launch 6 Full Launch of the product

Question 46

Stages of Product life cycle

Answer 46

1 Introduction 2 Growth 3 Maturity or Stabilization 4 Decline

Question 47

Define Marketing Strategy

Answer 47

A marketing strategy is a plan to combine the right combination of the four elements of the marketing mix for a product to achieve its marketing objectives.

Question 48

What are the legal controls on the market

Answer 48

laws that protect consumers from being sold faulty and dangerous goods laws that prevent the firms from using misleading information in advertising Example: Volkswagen falsely advertised environmentally friendly diesel cars and were legally forced to pull all cars from the market laws that protect consumers from being exploited in industries where there is little or no competition, known as monopolising.

Question 49

What are the problems of Entering a Foreign Market

Answer 49

Difference in language and culture: Lack of market knowledge: Economic differences: High transport costs Social differences: Difference in legal controls to protect consumers