AS/A Level Business Terms Revision

Laid back approach where employees trusted to take decisions.

• Autocratic leadership

• Democratic leadership

• Paternal leadership

• Laisses-faire leadership

Targeting different products to type of customer due to age, social factors, income levels, geographic or sociological factors.

• Market research

• Market segmentation

• Market planning

• Market share

Pre-set level of inventory where a business would place a new order for inventory.

• Inventory reorder level

• Buffer inventory level

• Maximum inventory level

• Economic order quantity

Businesses that are owned by its members and operated in the interests of the members.

• Joint ventures

• Co-operatives

• Franchises

• Private limited companies

Which one is NOT a definition of "contract of employment" ?

• A formal agreement between an employee and an employer.

• A legal document between a business and an employee.

• A formal document between a business and a recruitment agency.

• A formal deed with reference to employment responsibilities, working hours and rate of pay.

Each item finished before next one produced, for example: designer dresses.

• Job production

• Batch production

• Flow production

• Mass customisation

Individual / group with an interest to a business and might be affected by decisions of a business.

• Shareholders

• Board of directors

• Customers

• Stakeholders

Which one is NOT the definition of "market research" ?

• Process of collecting and analysing data to identify customer needs.

• Collecting primary and secondary data, such as when setting up a new business.

• Discussion process with customers, competitors, and suppliers to find the best solution.

• Identifying aspects of the market to aid decision making by using methods like surveys, interviews, internet.

Long-term plan for the whole business to give a business vision and direction.

• Objective

• Target

• Tactic

• Strategy

Define the term "economies of scale".

• Reduction in costs of production, resulting from an increase in the scale of operations.

• The rise in costs of production due to the rise of output.

• The relationship between the economic influence and the size of a business.

• Reduction in demand for a product due to the increase in price.