Theme 2 Business Studies

What does break even point show?

• where a business is neither making a profit or loss
• how many items to make
• how much profit they're making
• where a business has more fixed costs than variable

What is the margin of safety?

• the margin between projected units and break even point units
• the margin between profit and loss
• the margin between units and sales
• the margin between each break even point

What is the formula for contribution?

• cost price - selling price

• fixed costs - variable costs

• selling price - variable cost

• selling price - cost price

what is the definition of productivity?

• The effectiveness of productive effort, especially in industry, as measured in terms of the rate of output per unit of input.

• Relating to moral principles or the branch of knowledge dealing with these.

• A product that involves an activity

• Any nutritious substance that people or animals eat or drink or that plants absorb in order to maintain life and growth

what is the definition of outsourcing?

• a place, person, or thing from which something originates or can be obtained

• an activity in which a customer browses the available goods or services presented by one or more retailers with the intent to purchase a suitable selection of them. In some contexts it may be considered a leisure activity as well as an economic one.

• the introduction of new things or methods

• obtain (goods or a service) by contract from an outside supplier

A ‘hard’ approach to human resource management would:

• focus on the most efficient use of capital equipment

• treat employees as a resource to be used as efficiently as possible

• view workers as a valuable asset to be developed

• focus solely on better recruitment methods to improve employee engagement

Which of the following is not a benefit of training?

• Improved productivity

• Higher employee wages

• Better quality

• Improved reputation as an employer

Lean production is best defined as:

• a system of frequent improvement
• a production method that aims to reduce all forms of waste
• a production method dependent on automation
• a production method in which zero inventories are held
  by the firm

Capacity utilisation is defined as:

• the proportion of maximum potential output currently being produced
• full-capacity output
• maximum output ÷ current output × 100
• the level of output that is in balance with demand

Niche marketing is

• When a product has mass appeal and is marketed to all types of customer.
• When a product has mass appeal but is only marketed to some customers
• When a product is tailored to meet the needs of a specific type of customer in a small section of a larger market
• When a product is tailored to meet the needs of all types of customer in a large section of a small market