business

• What is the break-even point?

  The break-even point is where revenue and total costs are equal.
• Why is break-even analysis useful in business decision making?

  It helps predict how many units need to be sold to cover costs.
• How can break-even analysis assist in pricing strategies?

  It can show how different pricing strategies affect the break-even point.
• What impact do changes in fixed or variable costs have on break-even analysis?

  Changes in costs can highlight how many units need to be sold to break even.
• What is the formula for calculating break-even quantity?

  Break-even quantity = $\frac{\text{Fixed costs}}{\text{Selling price per unit} - \text{Variable costs per unit}}$
• What is cash in a business context?

  Cash is the money available for business operations, distinct from profit.
• Why is cash flow important for a business?

  Cash flow indicates the money coming in and out, affecting solvency.
• What can happen if a business has more cash outflows than inflows?

  The business could face financial trouble or insolvency.
• What is a cash flow forecast?

  A cash flow forecast shows the expected flow of money into and out of a business.
• What is a sole trader?

  A sole trader is a business owned and operated by one person.
• What are the advantages of being a sole trader?

  Advantages include full control and keeping all profits.
• What are the disadvantages of being a sole trader?

  Disadvantages include unlimited liability and limited growth potential.
• What is a partnership in business?

  A partnership is a business carried on between 2 and 20 partners.
• What are the advantages of a partnership?

  Advantages include shared workload and more skills available.
• What are the disadvantages of a partnership?

  Disadvantages include unlimited liability and potential for conflict.
• What is a public limited company?

  A public limited company is a large business where shares can be sold to the public.
• What are the advantages of a public limited company?

  Advantages include unlimited capital and limited liability.
• What are the disadvantages of a public limited company?

  Disadvantages include difficulty in management and threat of takeover.
• What is organic growth in business?

  Organic growth is internal growth where a business expands by itself.
• What are some methods of organic growth?

  Methods include developing new products and gaining new customers.
• What is external growth in business?

  External growth occurs through mergers or takeovers.
• What is a merger?

  A merger occurs when two businesses join together to form one larger business.
• What is a takeover?

  A takeover occurs when one business takes over another business.
• What are the types of mergers?

  Types include horizontal and vertical mergers.
• What is a horizontal merger?

  A horizontal merger occurs between businesses in the same industry.
• What is a vertical merger?

  A vertical merger occurs between businesses that supply inputs or services.
• What is the role of human resources (HR)?

  HR manages everything related to a company’s employees.
• What are some responsibilities of HR?

  Responsibilities include recruiting, training, and motivating staff.
• Why is identifying HR needs important for a business?

  It helps the HR department react to changes in demand and technology.
• What is an organizational structure?

  An organizational structure shows how people and departments are organized within a business.
• What is a tall organizational structure?

  A tall structure has many layers of management and a narrow span of control.
• What are the advantages of a tall organizational structure?

  Advantages include more promotion opportunities for workers.
• What are the disadvantages of a tall organizational structure?

  Disadvantages include higher costs and slower decision-making.
• What is a flat organizational structure?

  A flat structure has fewer management layers and a wider span of control.
• What are the advantages of a flat organizational structure?

  Advantages include quicker communication and decision-making.
• What are the disadvantages of a flat organizational structure?

  Disadvantages include less managerial support and potential communication errors.
• What is effective communication?

  Effective communication is when a message is clear, understood, and acted upon.
• What is employment law?

  Employment law protects workers from unfair treatment by employers.
• What is the Employment Rights Act?

  The Employment Rights Act is a legally binding contract outlining employee rights.
• What constitutes discrimination in the workplace?

  Discrimination is treating someone less favorably based on protected characteristics.