M1

Question 1

Document used for manufacturing process

Answer 1

Bill of materials
Product instructions
Production schedule
Production order

Question 2

Risk risponses

Answer 2

Acceptance
Avoidance - removing risk (leaving)
Pursuit
Reduction - reallocating capital/ diversifying product offering / rebalancing the asset portfolio / hedging
Sharing - syndication/ buy insurance

Question 3

Inflation in foreign currency leads

Answer 3

1. Reducing the purchasing power of the foreign currency
2. Less demand for the foreign currency
3. More demand for the domestic currency
4. Higher purchasing power in the domestic currency

Question 4

Difference between a demand curve shift vs change

Answer 4

Demand shift is caused by WRITEN.

Change in quantity demanded is change in price. The point moves along the demand curve.

Question 5

Coefficient of determination (R2)

Answer 5

Refinement of coefficient correlation

Question 6

Porter’s five external forces

Answer 6

Barriers to market entry
Market competitiveness
Existence of substitutes
Bargaining power of customers
Bargaining power of suppliers