Topic 2: Business Management Flashcards

1
Q

Identify the features of effective business
management

A

The features of effective business management are Planning, Organising, Leading, and Controlling

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2
Q

Recall the acronym for the features of effective business management

A

POLC

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3
Q

Identify the requirements for business goals

A

Specific, Measurable, Achievable, Realistic, and Time-based

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4
Q

Recall the acronym for the requirements for business goals

A

SMART

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5
Q

True or False: Profit maximisation is a long-term goal, in general, and may require the business to accept lower profits, or even losses, in the short-term

A

True

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6
Q

Explain why unethical business activity may initially boosts a company’s share price but in the long term, be harmful for the business

A

Unethical activities will boost the business since most unethical activities are financially good (slavery) but ultimately will harm the business by damaging its reputation

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7
Q

Recall when the classical management approach was invented

A

The classical management approach was invented during the Industrial Revolution

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8
Q

Identify the types of classical management approach

A

The types of classical management approach are classical-scientific and classical-bureaucratic

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9
Q

Identify the principles of classical-scientific management

A

The principles of classical-scientific management are:
1. Scientifically examine each part of a task
2. Select suitable workers and train them
3. Cooperate with workers
4. Divide work and responsibility

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10
Q

Recall who pioneered the classical-scientific approach

A

Frederick W Taylor pioneered the classical-scientific approach

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11
Q

Recall how Taylor examined the tasks to determine the most efficient method to perform it (classical-scientific)

A

Taylor used time and motion studies

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12
Q

Recall who pioneered the classical-bureaucratic approach

A

Max Weber and Henry Fayol pioneered the classical-bureaucratic approach

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13
Q

Outline the principles of the classical-bureaucratic management approach

A

The principles of the classical-bureaucratic management approach are:
1. A strict hierarchical structure
2. Clear lines of communication and responsibility
3. Jobs broken down into simple tasks; specialisation
4. Rules and procedures
5. Impersonal evaluation of employee performance to avoid favouritism and bias

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14
Q

Identify the types of planning

A

The types of planning are strategic, tactic, and operational planning

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15
Q

Identify the steps of the organising process

A
  1. Determining the work activities
  2. Classifying and grouping activities
  3. Assigning work and delegating authority
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16
Q

Identify the steps of the controlling process

A

The steps of the controlling process are:
1. Establish standards
2. Measure performance
3. Take corrective action

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17
Q

Identify the types of management approaches

A

The types of management approaches are classical, behavioural, and contingency management approach

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18
Q

Recall who pioneered the behavioural management approach

A

Elton Mayo pioneered the behavioural management approach in The Hawthorne Studies

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19
Q

Identify the main features of the behavioural management approach

A

The main features of the behavioural management approach are providing worker satisfaction, emphasising teamwork, and providing facilities

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20
Q

True or False: Under the contingency management approach, there is no miracle ‘blueprint’, the manager must adapt their approach to their employees, business, and circumstances in general

A

True

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21
Q

Identify the advantage and disadvantage of dividing the business functions

A

Division causes the business to become more specialised but it also requires a higher level of coordination to run smoothly

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22
Q

Identify the key business functions

A

Operations, Marketing, Financial, and Human Resources

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23
Q

Identify the types of quality management

A

The types of quality management are Quality control, Quality assurance, and Total quality management

24
Q

Identify the 4 features of marketing

A

Place, Promotion, Price, and Product

25
Explain the correlation consumers make with price and quality
Consumers correlate prices with quality. Low price = Low quality High price = High quality
26
Identify the methods businesses calculate their price
The methods are cost-based, market-based, and competition-based
27
Identify the main purpose of recording financial transactions
The main purpose of recording financial transactions is to summarise transactions into financial reports and statements. The records and documents allow the business owner to see the financial aspects of the business over a period
28
Recall what accountability is also known as
Accountability is also known as stewardship
29
Identify what it means if a business is liquid
A business is said to be liquid if it has the cash available to meet payments as they are due
30
Recall, in a cash flow statement, what is the cash inflow classified into
Cash inflow is classified into operating, investing, and financing activites
31
Recall, in an income statement, what are the main categories
The main categories are revenue, cost of goods sold (COGS), gross profit, expenses, and net profit
32
Gross profit = ...
Gross profit = Sales − COGS
33
COGS = ...
COGS = Opening stock + Purchases − Closing stock
34
Net profit = ...
Net profit = Gross profit − Expenses
35
Assets = ...
Assets = Liabilities + Owner’s Equity
36
Recall, in an income statement, what are the main categories of expenses
The expenses are selling, administrative, and financial expenses
37
Explain why taxation is not included in an income statement
Taxation is not a selling, administrative, or financial expense and therefore, the income statement is not concerned with it
38
Recall what owner's equity is also known as
Owner's equity is also known as capital
39
True or False: Intangibles are classified as current assets/liabilities
False: Intangibles are classified as non-current assets/liabilites
40
Identify the main elements of the human resource/staffing process
The main elements are: 1. Acquisition 2. Development 3. Maintenance 4. Separation
41
Identify the types of voluntary separation
The types of voluntary separation are retirement and resignation
42
Identify the types of involuntary separation
The types of involuntary separation are retrenchment and dismissal
43
True or False: Redundancy is an involuntary separation
False: It is both an involuntary and voluntary separation
44
Identify what KPI is an acronym for
Key Performance Indicator
45
Outline acquisition of human resources
Acquisition is the hiring of new employees
46
Outline development of human resources
Development is the improvement in employees' skills and abilities
47
Outline maintenance of human resources
Maintenance is the act of motivating employees, with monetary and non-monetary rewards, to stay with the business
48
Outline separation of human resources
Separation is the act of employees leaving the business
49
Identify the strategies that a business can implement to manage change effectively
A business can manage change effectively by identifying the need for change, setting achievable goals, resistance to change, and management consultants
50
Identify possible business goals
A business may have goals for profits, market share, growth, share price, environmental, and social
51
Differentiate a mission and vision statement
A mission statement is the present actions of a business to achieve its goals. On the other hand, a vision statement is the goals the business wants to achieve and work towards
52
Identify the promotional strategies that businesses can employ
The types of promotional strategies are personal selling, relationship marketing, sales promotion, publicity, public relations, and advertising
53
ROI = ...
Net Profit * 100 / Cost of Investment
54
Identify what ROI stands for
ROI stands for return on investment
55
Identify the skills of effective management
The skills of effective management are: 1. Interpersonal 2. Communication 3. Strategic thinking 4. Vision 5. Problem-solving 6. Decision-making 7. Flexibility 8. Adaptability to change 9. Reconciling the conflicting interests of stakeholders
56
Identify the features of classical management
The features of classical management are planning, organising, and controlling
57
Identify the features of behavioural management
The features of behavioural management are leading, communicating, and motivating