The nature of operations

Question 1

Added value

Answer 1

the difference between the cost of purchasing raw materials and the price in which the goods are sold for

Question 2

Intellectual capital

Answer 2

intangible capital of a business that includes human capital (well trained and knowledgeable employees), structural capital (databases and information systems) and relational capital (good links with customers and suppliers)

Question 3

Production

Answer 3

converting inputs into outputs

Question 4

Level of production

Answer 4

the number of units produced during a time period

Question 5

Productivity

Answer 5

the ratio of outputs to inputs during production

Question 6

Efficiency

Answer 6

producing output at the highest ratio of input to output

Question 7

Effectiveness

Answer 7

meeting the objectives of the enterprise by using inputs productively to meet customers needs

Question 8

Labour intensive

Answer 8

involving a high level of labour input in comparison to capital equipment

Question 9

Capital intensive

Answer 9

involving a high level of capital equipment compared to labour input