Business Studies Lecture Notes

Flashcards covering McGregor's Theory X, Opportunity Cost, effects of interest rates on business, and stages of the Product Life Cycle.

According to McGregor's Theory X, what are employees typically assumed to be?

Lazy, lacking ambition, only motivated by money, and having no ability to organize themselves, make decisions, or take responsibility.

What is the definition of 'Opportunity Cost'?

The loss of potential benefit of the next best alternative.

How will a rise in interest rates typically affect a business's sales and profits?

Sales will fall as consumers get a higher reward for saving, leading to less sales revenue and lower business profits.

What characterizes the 'introduction' stage of the Product Life Cycle?

Low sales as the new idea is first introduced, requiring high investment in advertising to inform potential customers.

What happens during the 'growth' stage of the Product Life Cycle?

Rapid growth in sales and profit, often accompanied by widespread promotion to educate customers about the new product.

Describe the 'maturity' stage of the Product Life Cycle.

Sales reach their peak and begin to level off, characterized by tough competition and businesses offering better quality or features.

What happens during the 'decline' stage of the Product Life Cycle?

The market shrinks, sales decline, and the business produces less or exits the market.

What are some examples of 'extension strategies' in the Product Life Cycle?

Lowering price, changing packaging, or adding new features.