Unit 104 - Lesson 4

​Unit 104 - Principles of Business

By Plumbers Cymoedd

Multiple Choice

What is meant by the profit of a business?

• The profit of a business is the total assets owned by the company.
• The profit of a business is the amount spent on marketing and sales.
• The profit of a business is the total revenue before any deductions.
• The profit of a business is the financial gain after subtracting expenses from revenue.

​Business Understanding

The survival and expansion of any company or business, large or small, depends on its profitability.

•Without profits, a company will cease to exist.

•Without companies, there is no employment.

•Without profits and employment, there are no government taxes.

•Without government taxes, there are no public services or unemployment benefits.

Multiple Choice

What is meant by losses in a business?

• Losses in a business indicate a surplus of assets over liabilities.
• Losses in a business are profits gained from sales.
• Losses in a business are where expenses exceed revenues.

• Losses in a business refer to increased revenue streams.

​Consequences of poor business management

Poor business management can often spell the end for construction companies. Poor planning, financial organising and lack of care can lead to unhappy endings for employers.

•Miscalculating or under-estimating for a building contract can result in lower profits or even financial losses for the company.

•Loss of assets can occur due to poor cashflow or financial management.

•Delay in company growth or future business opportunities can result from poor management of income and expenditure.

•Staff can lose their jobs and become redundant.

Multiple Choice

What is meant by a companies overheads?

• Overheads are its indirect costs of doing business that are not directly linked to production.

• A company's overheads are the salaries paid to its employees directly involved in production.
• Overheads refer to the profits made by a company each year.
• A company's overheads are its direct costs associated with production.

​Overheads

These are costs associated with the day-to-day running of a business. These include:

• Purchase of rental of a premises.

• Payment for services

• Purchase or lease of a vehicle

• Annual insurance
  

Fill in the Blank

Keeping track of funds that go out and funds that come in is achieved by using established systems and processes know as?

Math Response

If Company A has:

£2,300 in Cash

• £400 in Accounts Payable

• £500 in Accounts Receivable

• £1,100 in Bank Loans

What is Company A's Owners Equity?

Type answer here

Correct Answer: 1300

Deg^°

Rad

​Business Growth

To grow a business can be challenging. Trying to simultaneously maintain a healthy cash flow and grow a business.

The amount a company charges a customer for work carried out can be calculated using what?

​Business Growth

The amount a company charges a customer for work carried out can be calculated using what?

• The cost of materials needed.

• The equipment and labour required.

• Overheads that must be covered over the duration of the project.

• Prime costs involved when setting up the project.
  
  

​Open up your teams page

Complete assignment on pricing a job.

Multiple Choice

What is a job quotation?

• A job quotation is a summary of completed tasks and achievements.
• A job quotation is an formal request for job applications.

• A job quotation is a casual discussion about potential work and potential costing.

• A job quotation is a formal estimate of the cost and details for a specific job.

Multiple Choice

What is an invoice?

• An invoice is a summary of a company's annual profits.
• An invoice is a receipt for a returned item.
• A billing document that details a transaction between a buyer and a seller.

• An invoice is a document that lists the number of employee's and they're salaries.

Multiple Choice

What is the definition of quality workmanship?

• Quality workmanship is the skillful and careful execution of a task, resulting in a durable and precise final product.
• Quality workmanship is the neglect of details and standards, producing an unreliable and inconsistent final product.
• Quality workmanship is the random and careless execution of a task, leading to a fragile and imprecise final product.
• Quality workmanship refers to the use of low-quality materials and hasty techniques, resulting in a subpar outcome.

​Open up your teams page

Provide a 250 word rationale as to why quality is so important within your trade area and has such a big impact on reputation and business.  

​Importance of customer Service

To maintain a good reputation, a construction company must meet the expectations of the customer throughout a project.

Multiple Choice

Which of the following is a method of gaining customer satisfaction?

• Not dealing with problems

• Long queues

• Slow service

• Helpful and friendly staff

Multiple Choice

A benefit of offering good customer service is...

• Repeat business

• Less customers

• Reduced tax

• Poor reputation

Multiple Select

What are the benefits of good customer service?

• Attracting new customers

• Bad publicity

• Satisfied and motivated employees

• Lower staff turnover

Multiple Choice

What causes upset/annoyed customers?

• Breaking promises

• Finding customers products that they need

• Fast checkout queues

• Polite employees

Multiple Choice

This may result in high staff turnover...

• Poor customer service

• Good customer service

• Employees working well together

• Too much customer service training

​The consequences of loss of business

If a company plans projects poorly or does not maintain high standards of work and customer service, it will be unlikely to continue as a profitable business.
The consequences can include:
Loss of earnings, loss of assets, delay in growth, redundancy of staff, lower credit score and bankruptcy.

​Any Questions