Business Studies

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...

Stakeholders - Answer Individuals or groups of individuals who affect or are affected by a business Give 8 examples of stakeholders - Answer 1. Government 2. Owner 3. Employees 4. Financiers 5. Community 6. Costumers 7. Managers 8. Suppliers Consumer Goods - Answer Goods and services that are produced for consumers Producer Goods - Answer Goods or products sold from one business to another Needs - Answer Essentials needed for human survivial Wants - Answer Lux...

Above-the-line promotion - Answer Placing adverts using the media. Acid test ratio - Answer Similar to the current ratio but excludes stocks from current assets. Sometimes called the quick ratio. Advertising - Answer Communication between a business and its customers whereby messages are placed in the media to encourage the purchase of products. Agent or broker - Answer An intermediary that brings together buyers and sellers. Anti-competitive practices or restrictive trade pr...

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...

Need - Answer A good or service that is essential for people's living Want - Answer A good or service which people want to have, not essential Economic problem - Answer When wants exceed the resource available to make scarcity Scarcity - Answer when there are unlimited wants but limited resources Factors of Production (4) - Answer Land, labor, capital, enterprise Opportunity cost - Answer The next best alternative choice given up as another was chosen Specializatio...

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...

Small Business - Answer An organisation that has less than 20 employees Objective - Answer A specific target a business sets itself Seasonality - Answer A concept that explains that some businesses experience fluctuating levels of demand throughout the year Longevity - Answer The ability of a business to continue to survive in the longer term Mission Statement - Answer A summary of the main direction the business is heading in and what they believe in Stakeholder - Answe...

Productivity - Answer output measured against the inputs used to create it. Buffer Inventory Level - Answer inventory held to deal with uncertainty in customer demand and deliveries of supplies. Lean Production - Answer techniques used by businesses to cut down on waste and therefore increase efficiency. Kaizen - Answer Japanese term meaning "continuous improvement" through the elimination of waste. Just-in-time (JIT) - Answer production method that involves reducing or v...