Theme 1

Question 1

Market Segmentation

Answer 1

Dividing the market into groups of people with similar attributes or common characteristics.

Question 2

External Shocks/Crisis

Answer 2

Factors beyond the control of a business.

Question 3

Equilibrium

Answer 3

The price where supply and demand are equal.

Question 4

Complimentary Goods/Products

Answer 4

Product that are consumed and used together.

Question 5

Emotional Branding

Answer 5

Creation of brands that may appeal to customers emotional nature rather than their logical side.

Question 6

Psychological Pricing

Answer 6

Tactics that are designed to appeal to a customer’s emotional response to the

Question 7

Competitive pricing

Answer 7

When a business sets a similar price selling similar

Question 8

Penetration Pricing

Answer 8

Setting a low price initially and setting

Question 9

Price skimming

Answer 9

Setting a high price at the launch of a product

Question 10

Cost plus pricing

Answer 10

A cost base method for setting the prices of goods and services and is calculated by adding the mark up of percentage to the cost of product.

Question 11

Redundancy

Answer 11

When a business needs to reduce the size of his workforce or even close.

Question 12

External Recruitment

Answer 12

When the business looks to fill the vacancy from outside the business.

Question 13

Internal Recruitment

Answer 13

Selecting employees who already work within the business to fill the vacancy.

Question 14

Off-Site training

Answer 14

When employees are given training away from their normal job environment this can often be in a classroom.

Question 15

Chain of Command

Answer 15

The way the authority and power is organised in a business.

Question 16

Hierarchy

Answer 16

The order or levels of responsibility in an organisation from the lowest to the highest

Question 17

Flat structure

Answer 17

Structure with few layers and a wider span of control for each manager.

Question 18

Tall structure

Answer 18

one with many layers and a narrow span of control for each manager

Question 19

Span of control

Answer 19

the number of employees or subordinates that a manger is responsible

Question 20

Delegation

Answer 20

authority to pass down from superior to subordinate

Question 21

Commission

Answer 21

a payment to a worker based on a percentage of the value of sales.

Question 22

Piece rate pay

Answer 22

a payment system where employees are paid and agreed rate for every item produced

Question 23

Laissez faire

Answer 23

a leadership style where employees are encourage to make their own decisions

Question 24

Democratic

Answer 24

a type of leadership style in which members of the group take a participation in the decision making process for stock group member are encourage to share ideas and communication is two ways

Question 25

A trade off

Answer 25

a situation where having more of one thing leads to having less of something else a level business

Question 26

Franchise

Answer 26

a type of business operator allows others to trade under his name for a fee