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13.10.22 CTEC Unit 3 - Business Decisions Flashcards | StudBud
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13.10.22 CTEC Unit 3 - Business Decisions
13.10.22 CTEC Unit 3 - Business Decisions
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Unit 3 - Business Decisions
Flashcards
80 cards
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Questions
80
Answers
1
If price is $5.99, AVC is $0.99 and AFC are $2.00, the unit contribution is
Is impossible to determine
$3.99
$5.00
$2.99
2
Name the main disadvantage to formal communication
Often fails to motivate employees
Will clarify important issues
Time consuming
3
Inventory management's overall objective is what?
Analyze Data
Cost Control and Reduction of Stockouts
Track inventory
None of the above
4
Critical Path Analysis identifies...
a pattern
the resources necessary to complete a task
the number of activites in the project
the activities necessary to complete a task
5
The average rate of return will be higher if there is no residual value when capital is sold
False
True
6
Internal communication:
Occurs between suppliers and distributors.
Occurs inside of the organization.
Does not follow a chain of command
Occurs outside of the organization.
7
Revenue is..
The same as Profit
The money coming into a business through sale of goods/services.
The location of a business
Available Capital
8
What is an example of operational decisions?
What should I do to help facilitate employees?
How will I balance my new work demands?
How should I market my new clothing line?
Should I pursue a new clothing line?
9
Which line is not on a break even chart
Total revenue
Total cost
Variable cost
Fixed cost
10
What line is not on a break even chart
Total cost
Total revenue
Fixed cost
Variable costs
11
What TWO are the benefits of using break even analysis before a business starts?
They can set the sales price to cover costs
The business knows their costs
They don't know their margin of safety
They have identified their customers
12
Decisions dictate how much to charge for goods/services:
Franchisee
Marketing
Franchisor
Pricing
13
The payback period method of investment appraisal would be least important for those firms
Prioritising time in investment decisions
Requiring an early investment return
Focusing on profitability more than cash flows
That see liquidity as more important than profitability
14
The following are all methods of investment appraisal, except
Balance sheet return
Payback period
Net present value using discounted cash flows
Average rate of return
15
what is not an example of off the job training?
cooking
going to a company to train
being trained at collage
cleaning
16
What is the Critical Path Analysis?
A technique that identifies things needed to complete a task
A route to the final boss
17
What are strategic decisions?
Decisions that employees make each day to make the organization run
Discuss how to make a decision
How to get things done
They set the course of an organization
18
The Rate of Staff Absenteeism shows:
The no. of staff that leave the business for whatever reason
The no. of staff that don't turn up for work when required
The no. of staff who have sick days
The no. of staff that have no idea
19
Investment appraisal is...
used to find out the quickest way of completing a project
Tells us the GDP, inflation and unemployment
evaluating the profitability or desirability of investments
used to forecast sales
20
The Level of Management responsible for Strategic Planning
Middle Management
Shop floor staff
Senior Management
Supervisory level management
21
Benefit of External Communication
Efficiencies on the production line
Good reputation
Supporting staff development
Clarity of job roles
22
A barrier to communication may be defined as:
the media through which the communication occurs
any form of visual communication
a failure to provide a written record
anything preventing a message being received or understood
23
Variable costs...?
are paid on a regular basis
change depending on output
do not have to be paid in full
are the costs a business pays out when it first sets up
24
Who else might be interested in a business' break even analysis
A share holder
A customer
a stake holder
A Lender
25
Important strategic decisions are made without consultation by real leaders
False
True
26
How could you reduce a break even point?
Increase sales revenue
Decrease advertising
Reduce sales revenue
Increase promotional activities
27
On the job training . . . .
involves working away from the place of work
Involves special theoretical courses
Involves working on tasks whilst training
Occurs before Induction training
28
How do you calculate Average Rate of Return (ARR)?
Average profit/ investment X 100
investment/ Profit X 100
Investment/ average profit x 100
Profit/ investment X 100
29
What is communication?
Passing a message between two people
A person sending a message
Feedback after receiving a message
A person receiving a message
30
"Stress at work _____ rise to absenteeism, which is disastrous ______ business."
turns / among
makes / towards
brings / to
gives / for
31
Which stakeholders are likely to conflict?
Owners and staff members over wages
Local Community and Big Daddy Shaw
Local Community and Suppliers
Shareholders and board of directors
32
At Break even, Total Cost =Total Revenue
False
True
33
Induction training should include information on
how to obtain first aid treatment
how to apply plasters
the contants of the first aid box
how to administer basic first aid
34
Workforce Planning involves assessing...
Previous workforce
Current workforce and future staffing needs
Hiring staff
Staff motivation
35
What are not the benefits of on the job training?
Cheaper than any forms of training
Output is being produced
Can be easy to organise
Staff may get frustrated
36
Workforce Planning involves assessing...
Staff motivation
Previous workforce
Current workforce and future staffing needs
Hiring staff
37
Fixed costs = £1200, unit contribution is £ 8 breakeven is......
£150
9600
150 units
1208
38
What is Workforce Planning
Employing the boss' son
Analysing supply and demand of future workforce
Working from home
Leaving work early if you feel like it
39
total revenue minus total costs =
loss
profit
40
Failing to communicate with stakeholders could
Cause confusion
All of the above
Create ill feeling
Increase Costs
41
What are the three methods of investment appraisal?
Payback, Annualised Revenue Return, Net Present Value
Payback, ARR and NPV
PQR, NPV and loan assessment
Net Present Value, Average Real Return, Fallback
42
Break even is express in terms of what?
baked beans
amount in €
Number of units
amount in £
43
If fixed costs = £600 and unit contribution = £3
breakeven = 200 units
breakeven = 1800 units
breakeven = 603 units
breakeven = 3600 units
44
What happens to break even ANALysis when price is raised
Break even is the same
Break even is lower sales
Break even is higher sales
Break even is 120
45
How do you calculate net present value?
Total discounted cash flow - initial investment
Discounted cash flow/ Profit - Investment
Discounted cash flow + Profit - Investment
Cash flow + initial investment
46
What are the benefits of off the job training?
Customers and others are not put at risk
Learning cannot be distracted by work
It nay take time to organise
learning cannot be distracted by work
47
Induction training should be given to cover:
Safe working procedures
First aid arrangements
Fire and emergency evacuation procedures
All of the above
48
What is an example of tactical decisions?
How do I approach a customer?
Who should be let go when we downsize?
Should we merge with another company?
What should I say to customers?
49
If output is 250 units, breakeven is 130 units , unit contribution is £3 then profit is
£380
360 units
£360
380 units
50
What is NOT an investment appraisal tool?
Average Rate of Return
Payback Period
Net Present Value
Return on Capital Employed
51
In the Break Even Analysis on the x-axis you represent ...
revenues
prices
costs
products
52
Strategic Choice and Decisions relate to..
WHEREDO WE WANT TO BE?
DIDWE GET THERE?
WHEREARE WE NOW?
HOWWILL WE GET THERE?
53
Break even is expressed as
Shiny match attax
Zimbabwe Dollar
units
pounds
54
What's an example of Off the job training?
Playgrounds
Conferences
Workshops
Mentoring
55
Name the most common barrier to effective communication
Use of technical jargon
Letter doesn't arrive
A poorly worked letter
Receiver doesn't do as requested
56
Unit contribution =
selling price minus variable cost per unit
selling price minus total variable cost
57
The purpose of communication is to:
Inform
Persuade
All of the above
Negotiate
58
Benefit of Internal Communication
Motivating staff
Being considered part of the local community
Getting customers onboard
Reassuring Suppliers
59
Break even point is?
Opposite to break odd
When sales equal total expenses
What Chuck Norris will do to you
What you hope to do when you go to the casino
60
What are strategic decisions?
Discuss how to make a decision
Decisions that employees make each day to make the organization run
They set the course of an organization
How to get things done
61
Which of the following is UNRELATED to Critical Path Analysis?
Blue Ocean
Perquisite
LFT
EST
62
Advantages of on the job training?
Can learn bad habits
Cheap and easy to set up
Allows new employee to meet their team
Opportunity to Travel
63
Why is change in a business environment important
To influence inflation rates
To influence interest rates
To ensure business consistency
To support business growth
64
Communication breakdown can be avoided when:
The receiver does not listen.
The technology does not function effectively.
The sender speaks clearly.
The receiver does not understand the message.
65
Which of these is a risk of ignoring break even analysis
It allows a business to set a margin of safety
Allows the business to stock profitable goods
Cost of stock or materials may be too high
None
66
What is the major concern of workforce planning nowadays?
talent capability
None of them
Both of them
talent availability
67
Induction training
takes place after 12 months of employment
Takes place when the employment is terminated.
Takes place before the employee is hired.
Takes place at the start of the employment contract
68
In Critical Path Analysis, the Critical Path is __________.
dependent on the operations manager
always shorter than all other paths
always the longest path
never the longest path
69
____ own a corporation, but they do not make its day to day business decisions
CEO
Big business
people
Stockholders
70
What is the contribution per unit?
50p
95p
£1
45p
71
Which is not a Inventory management KPI used as a measurement?
Inventory Accuracy
Average Profit Margin
Carrying Cost
Inventory Turnover
72
What are the benefits of using Inventory Management system?
Better reporting and forecasting capabilities
Reduction in error due to data duplication
System records of SKU
All of the above
73
Total contribution =
breakeven
loss
profit
unit contribution X output
74
What is break even?
When a business makes profit
When a business makes a profit and a loss
When a business makes no profit or loss
When a business makes a loss
75
if variable cost per unit rises then the unit contribution
will be higher
will be lower
76
Non-Verbal communication includes:
Emotion
Tone of voice
Language used
Words
77
What is the formula for absenteeism
No of workers employed / No of days absent x 100
Staff employed / days lost to absence
No of employees absent / total No of employees x 100
Days off x No of workers absent
78
A problem with off the job training is
Workers feel motivated
Training will be expensive
Cheap
Up to date skills can be gained
79
Which of the following is NOT a communication medium?
Feedback
Email
Memo
80
Effective communication requires a culture of...
Empathy
Accountability
Respect
Trust
