Podcast
Questions and Answers
What is the primary reason shareholders influence a business's actions?
What is the primary reason shareholders influence a business's actions?
- To maximize shareholder value (correct)
- To ensure the business follows industry regulations
- To contribute to charity efforts
- To protect the interests of employees
Which of the following describes outsourcing?
Which of the following describes outsourcing?
- Delegating specific work to another company (correct)
- Transferring operational control to a board
- Franchising a brand to new markets
- Acquiring a competitor in the same market
What is a potential risk related to leadership within a business?
What is a potential risk related to leadership within a business?
- Higher production costs
- Increased market share
- Hostile takeover risk (correct)
- Improved employee satisfaction
What is a key characteristic of a franchising model?
What is a key characteristic of a franchising model?
Which stakeholder group may have conflicting interests with shareholders?
Which stakeholder group may have conflicting interests with shareholders?
What is the primary focus of ethical business practices?
What is the primary focus of ethical business practices?
What percentage of market share defines a monopoly?
What percentage of market share defines a monopoly?
Which of the following materials is mentioned as problematic for recycling?
Which of the following materials is mentioned as problematic for recycling?
Why is it difficult to compete with a business that has a monopoly?
Why is it difficult to compete with a business that has a monopoly?
What is one environmental concern associated with palm oil production?
What is one environmental concern associated with palm oil production?
What effect does unnecessary air travel have on the environment?
What effect does unnecessary air travel have on the environment?
Which of the following is a competitive market characteristic?
Which of the following is a competitive market characteristic?
How can selecting the right pricing strategy improve competitiveness?
How can selecting the right pricing strategy improve competitiveness?
What is the primary role of a business plan?
What is the primary role of a business plan?
How do objectives change over time for a business?
How do objectives change over time for a business?
What best describes 'Opportunity Cost'?
What best describes 'Opportunity Cost'?
Which of the following best defines 'Entrepreneurship'?
Which of the following best defines 'Entrepreneurship'?
Which of these should NOT be included in a business plan according to the content?
Which of these should NOT be included in a business plan according to the content?
How might the aims of larger businesses differ from smaller ones?
How might the aims of larger businesses differ from smaller ones?
What key question should a business plan answer for potential financial providers?
What key question should a business plan answer for potential financial providers?
What is considered a 'need' in the context of businesses?
What is considered a 'need' in the context of businesses?
What does a level of employment at 97% indicate?
What does a level of employment at 97% indicate?
Which of the following best defines consumer law?
Which of the following best defines consumer law?
What is M-Commerce?
What is M-Commerce?
What is a Multinational Company (MNC)?
What is a Multinational Company (MNC)?
What does consumer spending reflect?
What does consumer spending reflect?
What does the National Minimum/Living Wage refer to?
What does the National Minimum/Living Wage refer to?
How often does the National Minimum/Living Wage tend to increase?
How often does the National Minimum/Living Wage tend to increase?
Which of the following best describes E-Commerce?
Which of the following best describes E-Commerce?
What is a sleeping partner in a business context?
What is a sleeping partner in a business context?
What are economies of scale primarily concerned with?
What are economies of scale primarily concerned with?
Which term best describes the industries that provide services rather than goods?
Which term best describes the industries that provide services rather than goods?
Purchasing economies of scale result in what benefit?
Purchasing economies of scale result in what benefit?
What does entrepreneurship involve?
What does entrepreneurship involve?
Which of the following best defines a trade union?
Which of the following best defines a trade union?
What characteristic defines a footloose business?
What characteristic defines a footloose business?
Who typically takes on the role of an entrepreneur?
Who typically takes on the role of an entrepreneur?
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Study Notes
Needs vs. Wants
- Needs refer to essential products required for survival; wants are non-essential items desired by individuals.
- Goods are physical items that can be purchased, while services are actions performed for customers.
Business Plan Importance
- A business plan serves multiple purposes including securing funding and providing direction.
- Objectives within a business plan should adapt to changing circumstances and business size.
Opportunity Cost
- Opportunity cost is the value of the next best alternative foregone when making a decision.
- Choices can result in different financial outcomes, emphasizing the importance of strategic selection.
Enterprise & Entrepreneurship
- Enterprise encompasses the initiation and management of business activities for profit.
- Entrepreneurship involves creating innovative business ideas and seizing opportunities.
Business Structure and Stakeholders
- Larger businesses often have different objectives compared to smaller businesses or sole traders.
- Shareholders seek shareholder value while directors influence business operations.
Outsourcing and Franchising
- Outsourcing involves contracting external companies to handle specific tasks or jobs.
- Franchising allows other businesses to use a brand’s name in exchange for fees and a share of revenue.
Economies of Scale
- Economies of scale result from increased production leading to lower unit costs.
- Technical economies of scale enable organizations to utilize larger, more capital-intensive machinery.
Unit Costs and Factors of Production
- Unit cost represents the expenses incurred to produce each unit of a product.
- The entrepreneur, as one of the factors of production, is critical in risk-taking and resource organization.
Ethics in Business
- Ethics guide businesses to operate fairly and responsibly in their practices.
- Modern consumers expect ethical behavior, including minimizing environmental impacts.
Competitive Environment
- A monopoly occurs when a single firm dominates over 25% market share, allowing it to set prices.
- Competitive markets feature multiple businesses contesting for customers, impacting pricing strategies.
Employment and Consumer Laws
- Employment rate reflects the percentage of the working population currently employed.
- Consumer laws ensure products and services are safe and businesses interact honestly with customers.
Consumer Spending and E-Commerce
- Consumer spending is the total expenditure by households on goods and services.
- E-commerce refers to transactions conducted online, while M-commerce encompasses mobile device transactions.
Minimum Wage Regulations
- The National Living Wage sets the minimum income for employees, which is updated annually.
- As of 2019, the minimum rate for individuals aged 25 and over was £8.21 per hour.
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