Brand Question List
A name, term, design or symbol that identifies a sellers product and makes it distinct
Break-even point Question List
The number of units you need to produce / sell to stop making a loss and start making a profit
Cash Inflow Question List
Cash that comes in to the business, main source is from customers buying products
Design Mix Question List
The 3 main areas to be considered when designing a new product. 1) Aesthetics - How it looks 2) Function - How it works 3) Economic - How much it costs to make
Two ways of improving cashflow Question List
1) Destocking 2) Reducing credit terms
Ethics Question List
How morally a business conducts itself. Sometimes doing the right thing costs money!
European Union Question List
Group of European countries who have come together to create a single market
Exports Question List
Goods produced in one country but sold in another
Export subsidy Question List
Government policy to help encourage the export of goods
Hierarchy Question List
The number of levels of management in an organisations structure
Imports Question List
Goods bought from another country
Import protection Question List
Government restricts imports into their country
Just In Time Question List
Stock arrives JUST when required
Lead time Question List
The time between stock being ordered and arriving
Margin of Safety Question List
Any sales above the break-even point is your margin of safety (or safety net)
Marketing Mix Question List
Product, price promotion, place. The elements to consider in order to launch a product
The 4 orientations of a business Question List
Market, sales, product, production
5 levels in Maslow’s Hierarchy of needs Question List
Level 1 - Survival needs Level 2 - Safety needs Level 3 - Social needs Level 4 - Self esteem needs Level 5 - Self actualisation needs
Maximum Stock Question List
The maximum quantity set for each order a company makes
What are X managers in McGregor’s X/Y theory Question List
Strict, tight control
Merger Question List
Where two businesses join together to form a new business e.g. PC World and Currys
Minimum stock Question List
The minimum level of stock a company must have in order to keep trading
4 stages in the product life cycle Question List
Introduction, growth, maturity, decline
Re-order level Question List
When this level of stock is reached, the company must place their next order
Research and Development Question List
Investing time creating and designing an innovative product
Share capital Question List
Money obtained through the sale of shares
Sustainability Question List
The responsible management of resources. For instance using renewable energy sources like solar power instead of fossil fuels like oil
Takeover Question List
Where one business buys at least 51% of another business in order to control it
Quality control Question List
Checking finished products for problems or defects at the end of the production process
Quality Assurance Question List
Monitoring and evaluating quality throughout the production process
Venture Capital Question List
Money invested into a business by business angels or "dragons"
3 internal sources of finance Question List
1) Retained profits 2) Owners funds 3) Sale of assets
2 ways to improve profit Question List
1) Increase price 2) Reduce costs
Advantage of customer service Question List
Get repeat business Increase sales Gain an advantage over competitors
Disadvantage of recycling waste Question List
Costs increase
Trade descriptions Act Question List
Goods must be as described
Span of control Question List
The number of people you are responsible for
Internal communication Question List
Communication between employees
External communication Question List
Communication between employees and individuals outside the business
Formal communication Question List
Communication through recognised channels
2 methods of informal communication Question List
1) Gossip 2) Meetings
3 different payment methods for workers Question List
1) Flat rate 2) Commission 3) Profit sharing 4) Share ownership 5) Piece rate
Give an example of a pressure group Question List
Greenpeace Fathers for justice Tescolopoly Amnesty International
2 advantages of a single european market Question List
1) No barriers to trade 2) Access to more labour
Operating (Net) Profit Question List
= Gross Profit - Expenses
Making a Profit Question List
Objective for all firms in the private sector except charities. Profit can be used to expand the firm (retained) or paid to owners as a reward for risking their money.
Question List
Red = fixed cost Blue = sales revenue Green = total costs
Advantages of using break even charts Question List
1 Helps planning 2 Identifies how much a firm has to sell to make a profit
Disadvantages of using break even charts Question List
1 Only a forecast! 2 Selling price may have to fall if competition is strong 3 Fixed or variable costs may go up/down e.g. rent increase.
Formula for break even output Question List
=Fixed Cost (Price – Variable Cost)