mini assesment april Flashcards
1
Q
Insolvency?
A
-inability to meet debts
2
Q
Product life cycle?
A
A product life cycle shows the level of sales at the different stages through which a product passes over time
3
Q
Fringe benefits?
A
- perks over and above the normal wage or salary
- e.g, company car, subsided meals, discounts
4
Q
Job production advantages?
A
- high quality products
- motivated employees, coz they get to do a variety of jobs
- can charge higher prices because the business offers a unique product/service
5
Q
Job production?
A
- a method of production that involves employing all factors to complete one unit of output at a time
- e.g, tailors, building a bridge
6
Q
Cost plus pricing?
A
Adding a % to the costs of producing a product to get a price
7
Q
Promotional pricing?
A
Usually involves lowering the price of a product for a short period of time to draw in customers
8
Q
Promotional pricing disadvantages?
A
-many limit consumer options for items they dont want
9
Q
Short chain of command?
A
- Communication is quicker and more accurate.
- Top managers are less remote from lower employees, so employees will be more motivated and top managers can always stay in touch with the employees.
10
Q
Cost plus disadvantages?
A
- Ignores competition.
- A company may set a product price based on the cost plus formula and then be surprised when it finds that competitors are charging substantially different prices. This has a huge impact on the market share and profits that a company can expect to achieve
11
Q
Cost plus pricing advantages?
A
- It takes few resources.
- Cost plus pricing doesn’t require a lot of additional market research
- It provides full coverage of cost and a consistent rate of return
11
Q
Promotional pricing advantages?
A
- could help increase demand
- customers could return in the future, increasing loyalty and future sales
