Business Operations and Economics Review

Flashcards covering key concepts from the lecture notes on business operations, economics, and capacity management.

What factors may influence operational objectives?

Amount of finance, productivity of the workforce, state of the economy, and changes in trends.

How is labour productivity measured?

The amount of units produced per employee over a certain period of time.

What is the formula for calculating unit costs?

Total costs divided by total output (units).

What are the three main sectors of the economy?

Primary, secondary, and tertiary.

What is opportunity cost?

The cost of choosing one option over another, which is the alternative choice.

What factors could influence the leadership style adopted by a business?

The skills of the workforce, the size of the business, and the personality of the leader.

What does a business's capacity measure?

The maximum it can produce given its existing resources, such as raw materials, labour, and machinery.

How can a business's capacity change?

Yes, as machinery/technology may need updating or maintenance (which decreases production), or if employees are more motivated (leading to higher labour productivity).