End of Business Review

A prototype is trial, pre-launch version of a product used in the R&D process.

Capacity utilization measures the extent to which a firm is operating at its maximum potential level.

Price is part of the marketing mix for services.

The marketing mix describes the 4 Ps of marketing – product, price, place, and promotion.

Buffer stocks describes the use of reserve stocks under a just- in-case stock control system.

A problem in the marketing of services is that is harder to correct mistakes for sub-standard service.

Mass production would be the most suitable operations method to manufacture bottled water.

Kaizen involves empowering workers to make their own decisions for continuous improvements.

Physical evidence in the marketing mix refers to the tangible aspects of providing a service.

Insolvency occurs when a business has a negative cash flow but may actually be profitable.

The costs of land, labour, and transportation all have a direct impact on the location decision.

Daily media news articles are an example of primary market research.

Share capital is an example of an internal source of finance.

A benefit of break-even analysis is that it is relatively simple to calculate and analyse.

Cash cows are a firm's products with a short product life cycle.

In general, using a market-orientated approach is likely to be less risky for businesses.

Privately held companies are owned by stakeholders.

The "L" in the STEEPLE analysis stands for "Laws."

Crisis management involves preparing the necessary actions a firm needs to take if a crisis occurs.

A company's retained earnings are listed as a liability on the firm's statement of financial position.

Specialization is one of the three main methods of production or operations methods.

Direct costs refer to the costs that are clearly identified with the production of a specific good or service.

The term "product" can refer to both physical goods and intangible services.

Force field analysis, though useful, is subjective in its use.

A master budget is used to schedule work and order raw materials.

Responsibility is not a hygiene factor, according to Herzberg's two-factor theory of motivation.

It is generally desirable for the working capital cycle to be long.

Sampling errors describe mistakes arising from sampling design.

Advertising costs are an example of capital expenditures.

For the IB exam, you will need to know 5 different types of circular business models.

In the context of marketing, "place" refers to the geographical location of a business.

Virtual reality (VR) is an artificial, computer-generated environment accessible in a seemingly real world.

The balance sheet shows an organization's financial position at a specific point in time.

The three main causes of fluctuations in sales are seasonal variations, cyclical variations, and random variations.

Total contribution is total revenue minus total cost.

Quantitative responses from primary research tend to be more difficult to collect and collate than qualitative responses

In a task culture, formal job titles are relatively unimportant compared to an organization that has a role culture.

The use of a name, symbol, or design to identify a particular product is known as advertising.

The acid test ratio is an efficiency ratio.

With "Dog" products, you should consider using divesting strategies.

ATL promotion describes the use of promotional media such as TV where a business does not have any direct control.

In the Critical Path Analysis, EST stands for easiest start time.

As a purely quantitative planning tool, decision trees ignore qualitative factors that often affect decision making.

Recruiting workers is not likely to be a key function of management.

Very high prices in niche markets is a feature of the differenation strategy from Porter's Generic Strategies.

In Maslow’s hierarchy of needs, security needs describes the combined survival needs of people, such as food and water.

Operations management only applies to the secondary (manufacturing) sector.

Motivation describes the need to do something in return for money, such as wages and salaries.

Employees with excellent product knowledge are an example of process in the marketing mix of services.

The two axes on a product life cycle diagram are profits and time.

The salaries of senior executives are classified as a fixed cost.

Patents are used to protect inventions of a business.

Having a unique or distinctive selling point is considered a strength with the SWOT Analysis

A luxury car dealership is likely to have a low average stock turnover ratio.

Loan capital refers to interest-bearing and external sources of finance that increase the firm's level of borrowing.

On a break-even chart, the vertical axis measures the time.

Operations management does not directly affect a firm's marketing.

Rising interest rates in the domestic economy is considered a weakness for the SWOT analysis.

Delegation requires workers to be accountable for their work and can be a very effective motivational tool.

To be classified as a multinational company, the business must operate in more than two different countries.

Market penetration has the lowest risk on the Ansoff Matrix.

Awareness of changing consumer tastes in domestic markets is a direct concern for international marketing.

Strike action is the most extreme form that employees can take to achieve their objectives.

It is generally easy to create a Gantt Chart.

Expansion into international markets can occur through both external or internal methods.

Internal communication refers to communications between stakeholders within the business organization.

Stakeholders can be both internal and external to a business.

A childcare centre is an example of a business which operates in the quaternary sector.

Transparency is a fundamental factor affecting the effectiveness of crisis management.

Insourcing is the practice of bringing back business functions to the domestic country from overseas.

Actively pursuing ethical business objectives can be beneficial for the organization's triple bottom line.

Simple Linear Regression uses scatter plots with a line of best fit.

Before pursuing a project, qualitative investment appraisal should also be considered.

The higher the current ratio, the more money is tied up in liquid resources.

Quality management can help to reduce substandard quality output or even encourage zero defects.

Investment appraisal is a means of assessing whether an investment project is worthwhile or not.

Achieving a higher productivity rate is likely to be an objective of employees.

A firm's gross profit is calculated by deducting the cost of sales from sales revenues.

A laissez-faire leadership style is suitable if employees are highly skilled, experienced and driven.

The statement which sets out an organization’s long-term aspirations is known as the vision statement.

Forecasting an organization’s current and future staffing needs is part of workforce planning.

The ability of a bigger business to employ managers specialising by function is an example of a HR economy of scale.

The terms "data" and "information" can be used interchangeably.

On a position map, the location of a product or brand is determined by its consumers.

Bureaucratic organizations are often fast to respond to changes in the external environment.

When calculating a firm's market share, the figure is expressed as a percentage.

A business plan is an official document detailing an organization's proposals for reaching its corporate aims/objectives

Budgets helps managers to plan resource allocation within a business organization.

The current ratio is calculated by using the formula:Current liabilities ÷ Current assets.

Hofstede's cultural dimensions looks at 6 different aspects.

An increase in the creditor days ratio suggests that the timing of payments to suppliers has been delayed.

Cost-plus pricing can be used for almost all goods and services.