mistake cards

Question 1

What type of source of finance is debt factoring?

Answer 1

Short-term

Question 2

What is penetration pricing?

Answer 2

Penetration pricing is a pricing strategy where the price of a product is initially set low to rapidly reach a wide fraction of the market and initiate word of mouth.

Question 3

When does strategic drift occur?

Answer 3

When a business maitains a strategy that is no longer suited to current circumstances

Question 4

study network diagrams

Question 5

What is dynamic pricing?

Answer 5

The practice of varying the price for a product or service to reflect changing market conditions, in particular the charging of a higher price at a time of greater demand.

Question 6

What is payback in regards to an invetsment

Answer 6

The TIME it takes for the investment to cover itself

Question 7

An employee resists change because it will not help her personally. The business
overcomes her resistance by offering her a role in managing the change. This is an
example of using:

Answer 7

Manipulation to overcome self-interest

Question 8

What is NOT INCLUDED in assetts or liabilities from a basic balance sheet?

Answer 8

Sales revenue, Costs of Sales, profit

Question 9

What is an emergent strategy?

Answer 9

A strategy that changes and adjusts to market conditions as they occur

Question 10

What is contingency planning?

Answer 10

The aim of contingency planning is to minimise the impact of a significant foreseeable event and to plan for how the business will resume normal operations after the event.

Question 11

What is the process for contingency planning?

Answer 11

Identifying what and how things can and might go wrong
Understanding the potential effects if things go wrong
Devising plans to cope with the threats
Putting in place strategies to deal with the risks before they happen

Question 12

What is strategic planning?

Answer 12

Long term planning, affects whole business, refers to how a business well achieve its cooporate objectives that have been derived from the mission statement

Question 13

How do you calculate the float time?

Answer 13

LFT - Duration - EST

Question 14

What is contribution per unit?

Answer 14

selling price per unit - variable costs per unit

Question 15

What is TQM?

Answer 15

Total quality management:

Creating an enviroment which enocurages employees to monitor and improve quality of goods produced in order to better meet customer demand

Question 16

What are the different types of market segmentation?

Answer 16

gender
age
location
income

Question 17

What is the STP process?

Answer 17

Marketing process; Segmentation, Targeting, Positioning
1) Market segmentation
2) Targeting Strategy; Mass, niche or concentrated
3) Market positioning; how to compete in target market, positioning map
4) Competition Strategies; I.E differentiation, low cost etc…

Question 18

What are the 3 types of consumer goods?

Answer 18

Convenience good, shopping good and speciality good

Question 19

What is the capital structure of a business?

Answer 19

Equity + liabilities
The finance provided to it to operate long term

Question 20

What is the difference between loans and venture capital?

Answer 20

Venture capital is invested as share capital in return for an equity stake in the business.
A return is usually generated when the venture capitalist ‘exits’ and sells their shares.

Question 21

Whats the difference between venture capitalists and business angels?

Answer 21

Business angels are wealthy individuals that provide funding to a business in return for equity. The main difference is the amount tends to be smaller, between 10k and 250k, as venture capital firms usually do not want to lend this small amount and banks require assurance to back the loan.

Question 22

What is it called when mulitple business angels invest together?

Answer 22

A syndicate

Question 23

What are the different types of ‘labour shedding’?

Answer 23

Offereing early retirement, retraining, redeployment, volunatry redundancy and layoffs.

Question 24

What are works councils

Answer 24

It’s a type of employee involvement or participation system that is designed to give employees a voice in decision-making and to improve communication and cooperation between management and employees.

Question 25

What is benchmarking?

Answer 25

Understanding the position and performance of a business in relation to best practices. Business can then implement strategies to close performance gap.

Question 26

How do you calculate added value?

Answer 26

sales revenue - cost of sales

Question 27

How do you calculate contribution per unit?

Answer 27

Selling price of unit - variable costs per unit
(think contribution to fixed costs)

Question 28

What are mutuals, charities and social enterprises?

Answer 28

All types of non-profits

Mutual = doesnt have shareholders or owners, exist only to serve ‘members’ I.E nationwide building society

Social enterprise = Businesses with social objectives whose surpluses are reinvested toward that purpose. Not all profit has to be reinvested, can keep some, but aim to serve society

Charities = Business that ensure any proceeds made from activities are spent in accoradnce with sated aims of charity