| Give 1 example of a need? | Water |
| Give 1 example of a want | Ice cream |
| Define opportunity cost | is the next-best alternative when a decision is made |
| List the 4 factors of production | Land
Capital
Labour
Enterprise |
| Define entrepreneurship | it is the process of setting up a business,, taking on financial risks in the hope of profit. |
| Classify a business in its 3 sectors and describe every part clearly giving examples | Primary sector-
any industry involved in the extraction and production of raw materials, such as farming, logging, hunting, fishing, and forestry .
Secondary sector_
covers the manufacturing of goods in the economy, including the processing of materials produced by the primary sector.
Tertiary sector-
its is a business or organization controlled by the private sector and public sector. |
| Explain any 2 forms of business organizations ,clearly giving disadvantages and advantages of each form | Franchisor- sells the right to open stores and sell products or services using its brand, expertise, and intellectual property.
PROS-
You can make a profit by asking the brand owners to use their brand image/name on your behalf.
The customers are going to think that the business is from the brand owners because of the brand name and image.
CONS-
the person that asked to use your brand name might not know how to be a good decision-maker.
SOLE TRADER- a sole trader is a person who manages his own business alone he might have employees but the business is his only.
PROS-
doesn`t have to share profit with other people.
he can do his ideas without anyone disagreeing with him or discouraging him.
CONS- he won`t have anyone to assist him with the business.
The business can shut down because he will not be able to run it alone. |
| Define specialisation | is when businesses or a person is focusing on what they are best at.
EG; elisa and elss they trained to do sports when they were still kids until now they are doing sports, they are focusing on what they are good at. |
| Define division of labour | is when the production process is split up into two different parts or more yo do a certain task. These include ;machines and humans. |
| Define value addition | the difference between the price of a product or service and the cost of producing it. |
| Define stakeholders | a person who is interested in helping the team or a business in terms of finance but will want something in return.EG; shares. |
| Define objectives | the specific, measurable results that companies hope to maintain as their organisation grows |
| Define motivation | motivation is what makes employees want to work effectively like money is the main motivator said F.W TAYLOR. |
| Write any two importances of setting objectives to a business | For your business to grow in profit in the market and to earn more customers because if you don't get customers you will receive no profit.
For the business to be well known and around the country and world |
| why is value addition important | For customers to purchase your goods or services and to earn a profit because customers tend to like beautiful products and well detailed ones. |
| Discuss F.W TAYLOR`S motivational theory | In 1911 F.W TAYLOR said money is the main motivator, money makes employees work effectively although there were some people opposing what Mr. Taylor was saying because people can get paid while they are not doing anything at all or working effectively. for you to know how the employee is working effectively there is a need to measure their working progress and there is nobody who would like to be measures in order to get paid. |
| write any 2 reasons why people work | For financial income like a salary
To buy luxuries with the salary |
| Define a wage and a salary | wage-
is usually paid weekly to the employees
salary-
is paid monthly for the work the employees did for the company over the month. |
| List any 2 financial rewards and 2 non-financial rewards | financial rewards-
salary
wages
non-financial rewards-
free accommodation
free holidays |
| what is meant by piece rate | it`s when a boss pays his employees according to the quantity of products employees have made |
| what is meant by a bonus | its a lumpsum usually paid to employees after they work ,it is usually given after a year or once in a year |
| Define organizational structure | the method by which work flows through an organisation |
| give any 2 advantages of a organisational chart | faster decision making
better communication |
| Define chain of command | the hierarchy of reporting relationships from bottom to top or top to bottom |
| Define span of control | the number of employees that can be managed effectively and efficiently by the supervisors or managers in an orgnasition |
| give 2 advantages of the span of control | better communication
more tasks can be completed |
| Define management | planning ,leading, organising and controlling the business |
| Define delegation | giving employees permission or authority to do a given task |
| Discuss the roles of management | planning- the business has to make future plans for the business to grow and get more profit.
CONTROLLING-the manager needs to control the business.
Organizing-the business needs to be organized in order to make more profit
LEADING-every business needs a good leader and qualified people in order to run the business nicely |
| what is meant by a democratic leadership | is when the employees are included in decision making,that means that their thoughts matter to the manager |
| identify two examples of other leadership styles could use | autocratic leadership style
laissez-faire leadership style |
| identify and explain two disadvantages to this of having a tall organisational structure | to many workers and if they make one mistake everything goes down .they can steal some of the profits.
it can create confusion if someone has made a mistake |
| Define recruitment | it is when a business or organization looks for a person to replace a certain job. |
| Define job description | outlines the responsibilities and duties to ne carried out by someone to do a specific job |
| define internal recruitment | the process of filling vacancies within a business from its existing workforce. |
| define external recruitment | when the business looks to fill the vacancy from any suitable applicant outside the business |
| give any 2 advantages and 2disadvantages of internal communication | PROS-less expenses so that they wont have to spend money on advertising
the employee knows what the business experts want.
CONS-they won`t be new ideas for the business to do
the other employees can feel that he/she is not worthy enough for the job. |
| give any 2 advantages and 2 disadvantages of external recruitment | PROS- he/she will bring new ideas for the business to do.
the other employees won't feel left out because someone outside the organization will get the job
CONS-expenses will be a lot because they will need to advertise for the job.
they have to do the recruitment process and that takes a lot of time and money to. |
| what is meant by job analysis | for the people who are applying to know what the job does and the certain amount of work what the people will have to do |
| what is meant by a job description | it is when the people who are applying to know what the job expects and want to gain |
| what is meant by business | an organization or enterprising entity engaged in commercial, industrial, or professional activities |
| define communication | the imparting or exchanging of information by speaking, writing, or using some other medium |
| Define internal communication | it is when people only in the organization are communicating |
| external communication meaning | the processes responsible for communicating with people and entities outside your organization |
| Define verbal communication | it is a way of communicating using the mouth to talk |
| Define written communication | any written message that two or more people exchange. |
| Define effective communication | it is when a sender receives a feedback from the sender |
| define one way communication | when a message flows from sender to receiver only, thus providing no feedback. |
| Define two way communication | when both the receiver and sender can receive feedbackfrom one another |
| why is communication important? give only 2 reasons | it can help you reduce misunderstandings
develop strong relationships and establish yourself as an active team member |
| give any 2 features of effective communication | sender
receiver |
| Define communication | is when messages are sent through established channels using professional language |
| Define informal communication | is when information is sent and received casually with the use of everyday language |
| The communication barriers | The sender-
poor attitude/wrong body language ,unclear message ,message to long.
Medium-
too many people pass on message,message may be lost ,techinical breakdown.
Receiver-
lack of trust, poor attitude ,doesn`t listen
Feedback-
no feedback received feedabck received is too slowy or is distorted |
| Define mass marketing | a very large number of sales of a product |
| Define niche marketing | a small, usually specialized segment of a much larger market |
| Define market segment | are identifiable sub-group of a whole market in which consumers have similar characteristics |
| Define market research | is the processor of gathering, analyzing, and interpreting information about a market. |
| Define primary research | is the collection of original data via direct contact with potential customers E; G interviews,questionnaires,observations, focus groups |
| Define secondary research | is information that is already collected and is available for use by others |
| Define marketing mix | is a term that is used to describe all the activities which go into marketing a product or service |
| The 4 ps | product
price
place
promotion |
| Define product of the 4 ps | in marketing, we look at the product itself like the design and quality, packaging, and how the product is compared with its competitors. |
| Define price of the 4 ps | in marketing we look at the price is sold and the price must be made with the prices of the competitors products |
| Define place of the 4 ps | This refers to the channels of distributions that are selected. we will be looking at where the manufacturer will sell his products that is to the public, wholesalers or direct to customers. |
| Types of products | consumer goods
consumer services
producer goods
producer services |
| Define consumer goods | these are goods that are consumed by people EG, food |
| Define consumer services | these are services that are produced by people EG, education |
| Define producer goods | These are goods that are produced for other businesses to use EG, lorries and machinery |
| Define producer services | these are services produced for other businesses EG, accounting and insurance |
| Define branding | A brand of a product is created for the product to have different fixtures from other products |
| Define brand image | is an image or identity given to a product that gives it a personality of its own and distinguishes from its competitiors brands |
| Define brand loyalty | its when consumers keep buying the same brand over and over again |
| Define packaging | It's the physical container or wrapping for a product it's used for promotion and selling appeal. |
| Define cost-plus pricing | this is pricing in order to cover costs and ensure a certain profit is made |
| Define competitive pricing | involves putting prices inline your competitors prices or just below |
| Define psychological pricing | is an approach when particular attention is paid to the effect that the price of a product will have upon consumers perceptions of the product. |
| Define penetration pricing | is used when trying to enter new markets |
| Define price skimming | this is when a high price is set for a new product on the market |
| Define promotional pricing | this is when a product is sold at a very low price for a short time of period |
| Define dynamic pricing | this happens when customers are split into two or more groups and they are charged the same product depending on time and level of demand |
| Define price elasticity of demand | it is the measure of the responsiveness of demand to a change in price |
| Aims of promotion | to increase sales
to create a brand image
to improve the company image
to inform people about particular issues often used by the government |
