YEAR 10 END OF TERM BUSINESS

Question 1

What is meant by cash flow?

Answer 1

Cash is constantly moving into and out of a business. For example, when a retailer purchases inventory, money flows out of the business toward its suppliers.

Question 2

Fixed cost:

Answer 2

Fixed cost means a cost that does not change.

Question 2

Examples of primary market research:

Answer 2

Interviews (telephone or face-to-face) Surveys (online), postal surveys Questionnaires (online or mail).

Question 3

Examples of secondary market research:

Answer 3

Published market studies

Customer emails.

Customer surveys and feedback.

Question 4

Variable cost:

Answer 4

A cost that keeps on changing.

Question 5

Total Cost:

Answer 5

Fixed cost+ Variable cost

Question 6

Break-even:

Answer 6

Break-Even Point (BEP) = Fixed Costs ÷ (selling price – variable cost).

Question 7

Job production:

Answer 7

Job production is the production of high-quality, customised products that meet customers’ specific needs

Question 7

Mark up:

Answer 7

(selling price - cost)
—————————-X100
Cost

Question 8

Job description:

Answer 8

A job description is a written explanation that outlines the essential responsibilities and requirements for a vacant position.

Question 9

Person specification:

Answer 9

The person specification is a description of the qualifications, skills, experience, knowledge and other attributes (selection criteria) which a candidate must possess to perform the job duties.

Question 10

Economies of scale:

Answer 10

Economies of scale are cost advantages reaped by companies when production becomes efficient

Question 11

Diseconomies of scale:

Answer 11

Diseconomies of scale occur when a business grows so large that the costs per unit increase.

Question 12

Qualitative market research:

Answer 12

Qualitative market research is the study of the factors that influence people’s behavior within a specific market.

Question 13

Quantitative market research:

Answer 13

Quantitative research deals in numbers, logic, and an objective stance.

Question 14

Net cash flow:

Answer 14

Total cash inflows – Total cash outflows

Question 15

Communication:

Answer 15

Communication is a process that involves sending and receiving messages through the verbal and non-verbal methods.

Question 16

Internal communication:

Answer 16

Internal communication is an entire process within an organization. It includes how information is shared up and down communication channels, as well as laterally, in order to achieve the organization’s goals. Communication is shared in various forms (verbal, written, and digitally), within teams and company-wide.

Question 17

External communication:

Answer 17

External communication refers to exchanging information between a company and external entities such as customers, suppliers, investors, media, and the general public.

Question 18

Government legislation:

Answer 18

The preparation and enactment of laws by a legislative body through its lawmaking process.

Question 19

Added value:

Answer 19

An improvement or addition to something that makes it worth more.

Question 20

Source of finance:

Answer 20

Where a business gets money from to fund their business activities.

Question 21

Internal finance and its types:

Answer 21

Money that comes from inside the business.

Personal savings – Owners savings.

Retained profit- The profit you reinvest in your business.

Selling assets – Selling something valuable and getting cash in return to invest in business.

Question 22

External finance:

Answer 22

Money that comes from an external source. For example: Bank loans, crowd funding etc.

Question 23

Gross profit Margin:

Answer 23

Gross profit margin = gross profit revenue ×100

Question 23

Non – current assets:

Answer 23

Non-current assets are assets and property owned by a business that are not easily converted to cash within a year.

Question 23

Revenue:

Answer 23

Revenue is the money generated from normal business operations.

Question 24

Current assets:

Answer 24

Current assets are the resources that a business owns and expects to use or sell within a year.

Question 25

Gross profit:

Answer 25

Gross profit = revenue – cost of sales

Question 26

Recruitment:

Answer 26

Recruitment is the process of actively seeking out, finding and hiring candidates for a specific position or job.

Question 27

Full and part time employment:

Answer 27

Full-time employment is usually 35 hours or more per week. Part-time employment is usually 1 - 34 hours per week.

Question 28

Permanent contract:

Answer 28

It is a contract with no expiration date, which remains valid until either employer or employee chooses to end the agreement.

Question 29

Temporary contract:

Answer 29

A temporary position is one that has a defined duration of employment with a contract end date.