Study guides, Class notes & Summaries

Business - Answer any activity that provides goods and services in an effort to earn a profit Profit - Answer revenue - expenses = Profit (or loss) Loss - Answer When a business incurs expenses that are greater than its revenue Entrepreneurs - Answer people who risk their time, money, and other resources to start and manage a business Standard of Living - Answer the quality and quantity of goods and services available to a population Quality of Life - Answer the overal...

Breakeven - Answer The point when a firm's total costs equals its sales revenue. It is measured by the volume of output or number of customers needed to break even. Budgets - Answer A financial plan of how the money in a business will be used. The Budget refers to the financial plans of the government. Business objectives - Answer The targets which a business sets itself, e.g. to survive, make profits, increase market share, expand. Business ethics - Answer Moral principles, th...

TOPIC ONE - Answer OPERATIONS Define the operations function - Answer refers to business processes that transform and add value to inputs to produce outputs, part of the value chain Define the operations process - Answer Inputs - Transformation - Outputs (More Value then Inputs) Define strategic role of operations management - Answer 'affecting all key business areas in the longer term' - meeting key objectives of profit maximisation and competitive advantage What is Michae...

Strategic Role of Human Resources - Answer This involves the managing the employer and employee relationship. It also involves recruitment, industrial relations, conflicts within the business Outsourcing - Answer Human Resource Functions Using Contractors Human Resource Functions - Answer These are contracted specialists. Businesses of all sizes and functions outsource. Businesses outsource to provide a broader skill base, cheaper to employ contractors, specialists can be more effic...

Cost-based leadership (Strategic role of Operations) - Answer Reducing transformation costs to produce a lesser costing product Goods/service differentiation (Strategic role of Operations) - Answer Creating a product that is different to competitors Strategic role of operations - Answer To implement the business strategy Interdependence with Finance - Answer Required to pay employees and suppliers, ensures that raw materials and component parts are available when needed Inter...

Enterprise - Answer Where new businesses are formed and new products or services are created and bought to the market. Entrepreneurs - Answer Individuals who have an idea that they develop by setting up a new business and encouraging it to grow. They take risks and gain rewards for success. Opportunity Cost - Answer The benefit given up or not choosing the next best alternative. Niche Market - Answer A small section of the market that businesses specifically target. Franchise...

What is cost leadership? - Answer aiming to have the lowest cost while making the most profit what is economies of scales - Answer this is when businesses can buy in bulk meaning they get there products at a cheaper price what is a standardised good? with example - Answer good with uniform features e.g. big mac, newspaper what is a customised good? with example - Answer when features change depending on the customer e.g. made to measure suits, house renovations what is the di...

Goods - Answer Tangible products Services - Answer Intangible products, tasks paid to do Production - Answer The process of creating finished products Semi-finished products - Answer Products ready to be incorporated into finished products Finished products - Answer Products ready for consumption Business activities - Answer Management, Production, Marketing, Controlling products, Forecasting finances, Planning finances, Distributing goods and services and organising r...

A physical product such as a house or designer suit - Answer Good An intangible item such as insurance or decorating - Answer Service A more general term which includes goods and services - Answer Product Measures the total value of the production of an economy over a period of time - Answer Gross Domestic Product Sets out a business's overall purpose to direct and stimulate the entire organisation - Answer Mission Statement The long-term plans of the business from whic...

A Need - Answer A good or service essential for living. A want - Answer A good or service that people would like to have, but which is not essential for living. Economic problem - Answer Unlimited wants but limited resources - this creates scarcity. Scarcity - Answer Lack of sufficient products to satisfy total wants of population. Opportunity Costs - Answer The next best item given up by choosing another. Factors of production - Answer Resources needed to produce good...