Lesson 6 - Operating Factors Flashcards
List 4 business motivations
financial independence, personal independence, make a profit, fulfil a market need
Name 5 KPI’s used in a business to measure performance
Percentage of marketshare, Net profit figures, No. of sales, level of wastage, rate of productivity growth
Name the correct term for the below definition:
This is the amount a lender charges a borrower and is a percentage of the principal—the amount loaned. It can also refer to the amount earned on savings and investments.
Interest rates
Which level of control does the business owner have in the operating environment?
a) No Control
b) Some Control
c) Full Control
d) a and b
b) Some control
List any two factors of the operating environment
Customer needs & expectations
Competitors behaviour
Special interest groups
Suppliers & supply chain
Provide the definition of a special interest group.
Isa group of members with shared interests.They can put pressure on a business to act in line with these interests
Which of the following organisations are not a special interest group?
a) Environmental lobby groups
b) Animal rights groups
c) Ethan’s cleaning service PTY LTD
d) Unions
c) Ethan’s cleaning service PTY LTD
Define the term “union”
formed to represent and protect the rights of workers in a particular industry
Outline any 3 impacts that a union might have on a business.
Productivity
Costs
Profits
Competitiveness
Reputation
Which is NOT a reason that supply chain management is not important?
a) If resources required are not on hand, then nothing can be produced.
b) If resources are of inferior quality, it is difficult or costly to produce quality products.
c) If the supply is your friend, it is always good to support friends businesses
d)If the right quantities of resources are not available, the business cannot meet demand for its products.
c) If the supply is your friend, it is always good to support friends businesses
