Mock Flashcards
Greenwashing definition
When a business provides the public and investors with misleading information about the environmental impact of a company’s product/service.
Gig economy definition
A labor market characterized through short-term contracts or freelance work rather than a permanent job.
Freelancers definition
When someone who is self-employed works for multiple employers at once. Freelancers are part of the gig economy.
Stakeholders definition
Can be internal or external, and are affected by the business through any business actions.
2 advantages of turning private to public
- Raising large amounts of finance by issuing shares to the public, which helps them expand their operations.
- Banks will offer them loans with lower interest rates.
2 disadvantages of turning private to public
- Dilution of control, where the owners lose full control of ownership if they do not have majority.
- Lack of privacy since their financial records are publicized.
Balance sheet
[Company Name] (profit/non-profit making entity)
Non-Current Assets
Current Assets
Cash
Debtors
Stock
Total Assets
Current Liabilities
Creditors
Short-term loans
Overdraft
Non-Current Liabilities
Long-term loans
Total Liabilities
Net Assets (Total Assets - Total Liabilities)
Retained Earnings
Share Capital (only for profit making)
Total Equity (must = net assets)
Payback period steps
- Create a cumulative column
- Locate where the expected revenue goes from - to +
- Take the value of the cumulative in the first year/the revenue expected in the second year * 12 to get the number of months.
Average rate of return steps
- Take the last cumulative value
- Divide it by the number of years
- Divide it by the cost
- *100%
Net present value steps
- Create a new column where the expected revenues * discount factor to get present values
- Add them to get the total present value
- Subtract the cost to get the net present value
What does working capital equal
working capital = current assets - current liabilites
Maslow’s Hierarchy of Needs
Basic Needs: Food, warmth and shelter
Safety Needs: Security of body and health, employment resources and family.
Love/belonging: Friendship, family and sexual intimacy
Esteem: Confidence, achievement, respect of and by others
Self-actualization: Creativity, morality, problem-solving and acceptance of facts
Maslow believed that people have needs that must be met to motivate them, which he ordered based on importance. The basic needs at the bottom of the hierarchy are the most important, and must be met no matter what. The first 4 levels are all considered basic needs that eventually ‘go away’ when met and the individual does not feel any anxiety. The rest of the needs are considered growth needs, and do not ‘go away’ when met. Instead, the individual strives to find new ways to meet the needs, and be the best they can in as many fields as possible in order to fulfill their potential. It disregards a key issue faced by managers where individuals are demotivated when needs are met.
McClelland’s Acquired Needs Theory
David McClelland believed that an employee’s motivation is influenced by three needs: Achievement, affiliation and power.
Achievement: Motivates employees who want to work on tasks and succeed through mastery and hard work.
Affiliation: Motivates employees through the forming of social relationships. These employees prefer being in groups and care about what others think of them.
Power: Motivates employees who want to encourage, influence and teach others. They think in terms of winning and losing, and want to win and gain power.
No employee falls perfectly under one of these categories, and they are interconnected. All employees have some measurement of each of these needs. For example, an employee motivated by power can also want to form social relationships and be liked. When managers understand their employee’s needs, they can create a motivational approach for each of them.
Definition o\f supply chain
The process a product goes through from suppliers to manufacturers to the retailer, and eventually to the customer.
Definition of mass marketing
Targeting a wide range of customers. which is cheaper due to economies of scale.
