Business Studies Flashcards

Flashcards for quick review.

What is cost leadership in operations management?

Aiming to have the lowest costs to be most price competitive in the market.

What are the two types of goods regarding standardisation?

1. Standardised goods are mass-produced and uniform in quality. 2. Customised goods are tailored to meet the needs of consumers.

What is interdependence in the key business functions?

The mutual dependence of the four key business functions to achieve common goals like profit and maximisation

What is environmental sustainability in CSR?

Protecting the environment by, ethically sourcing materials, outsourcing responsibly, adopting sustainable practices, reducing carbon footprint

What is visibility in the 4 V's?

How and how much should customer choices shape the operations process

What is a Gantt chart?

Outlines each step in the operations process, the order they will be done and the time needed for each step

What are the advantages of using technology in operations?

Using machinery and systems to improve process efficiency and employee productivity. Manufacturing- robotics, CAD, CAM Service-based: telephones, printer, internet

What is customer service in operations?

Meeting and exceeding customer expectations. Purpose: build a strong relationship Aim: operations can use customer feedback Review and reshape their processes

What is conformance?

The ability of the manufacturer to meet the production expectations consultancy, minimal variations between items produced

What does dependability refer to?

How consistent and reliable a product is, for goods it's how long the products are useful before they fail, whereas service means consistency of service standards and reliability

What is Just-in-time (JIT)?

Little stock is held as possible and only brought it when required

What are compliance costs?

Compliance cost refers to the expenses incurred by an organization to ensure adherence to industry regulations and standards

What are the main financial objectives in finance?

Profitability, Growth, Efficiency, Liquidity, Solvency

What is Profitability?

Earnings of business after expenses are paid

What is Liquidity?

Measure of how quickly an asset may be converted into cash & therefore available to pay short-term debts

What is Owner's Equity?

Contributions by the owners, small businesses and start ups (savings)

What is factoring?

Selling accounts to third party at discount

What are debentures?

long term securities yielding a fixed interest rate

What are 'New Issues'?

First time on share market Issued through a stockbroker

What is the Australian Securities Exchange (ASX)?

Primary stock exchange group in Australia

What is monetary policy?

Steps taken by RBA to affect the finance market & assist the federal government to achieve its goals of low inflation & economic growth

What are financial needs?

New businesses will have to determine start-up costs e.g. o New equipment o Obtaining appropriate premises

What are Project budgets?

Relate to capital expenditure and R & D

What are Financial risks?

Is the risk to a business of being unable to cover financial obligations

What should current assets be purchased with following the matching principle?

Short term finance

What is the purpose of matching sales inflow can match sales outflow?

Vital to asses for the business to asses whether money inflow can match money outflow

What does investing include?

Purchases or sales or long term assets such as property, plant and equipment

What is a balance sheet?

Represents a business’s assets & liabilities at a particular point in time, expressed in money terms

How does the balance sheet show LIQUIDITY & SOLVENCY?

LIQUIDITY 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 GEARING (SOLVENCY) 𝑡𝑜𝑡𝑎𝑙 𝑑𝑒𝑏𝑡 𝑡𝑜𝑡𝑎𝑙 𝑒𝑞𝑢𝑖𝑡𝑦 𝑥 : 1. 0

What are normalised earnings?

Are earning adjusted to take into account volatile or cyclical upswings/ downswings, removing one-time unusual influences

What is Sugging?

Selling goods under the disguise of a survey, questionnaire etc. then offering customers the product claiming that the customer ‘needs’ it

What is the Australian Consumer Law?

Replaced 17 existing national, state and territory consumer laws

What is competitive positioning?

is a formal business process to determine how to differentiate the business from competitors in the market

Why is having a good sales mix important?

Marketing for selling for a range of products, focused on costs