Business

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what is an enterprise
combination of attitudes and skills that helps an individual turn an idea into reality
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what is an entrepreneur
someone who makes a business idea happen, either through their own effort or by organising others to do their work
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what is a autocratic manager
managers keep authority to themself,do not delegate or share information with employees, tell them what to do
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traits for autocratic
tell employees what to do, dont listen to them much, know what they are doing, give orders and dont want feedback
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what is a democratic manager
manager who takes into consideration their employees views and opinions, involve them in the decision-making
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democratic traits
like to involve workers in decisions, listen to employees ideas, communication is 2 way, regular delegation
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what are the two ways to approach democratic leadership
management by objective - leader agrees clear goals with staff, proves resources and allows staff to make to day to day decisions. Laissez-faire- let it be attitude and do not take time to ensure that junior staff know what to do
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what is a paternalistic manager
manager who believe they know what is best for them, telling them what to do but will explain their decision and are concerned over their social needs
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paternalistic traits
thinks and acts like a father, tries to do what is best for staff, believes staff need direction, interested in their social needs, and how they feel and if they are happy to work
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what is theory x
dont trust staff, belive they do not enjoy work and focus on their wages, and need to be controlled
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what is theory y
believe employees enjoy work and want to contribute ideas and effort, involve them in decision making and give them greater responsibilites
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what is a franchisee
a person who has paid to become part of an established franchise business
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what is a franchisor
the owner of the holding company and franchise
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why become a franchisee
safer start up, already has a national reputation, marketing decisions willl be handled by head office
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advantages of franchisee
training to become full entrep, finance is easier and cheaper to get, interest rates are charged lower by bank
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advantages of franchisee
training to become full entrep, finance is easier and cheaper to get, interest rates are charaged lower by bank
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what is a opportunity cost
the cost of missing out on the next best alternative when making a decision
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what is a trade off
when an individ has to give up something in order to get what he wants most, may not be quantifiable
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interest rate?
the price charged by a bank per year for lending money or for providing credit
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contribution?
what a business needs to achive from selling products on order to first cover its fixed costs and therefore make a proft
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ped between 0-1
price elasticity is low, has a well-differentiated product, well branded, demand is price-inelastic
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ped = -1
%change in demand is the same as % change in price
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ped is -1 or more
demand is very sensitive to price change, price is elastic, undifferentiated product
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factors affecting demand - substitutes,cost os swtiching products, luxury or essential,habit
sub- more elastic in demand, find it easy to swtich. cost in switch- more likely to be inelastic if costs are involved. luxury of essential- neccesties are inelastic, feel the need it, luxy mroe elastic. habit -used to buying a product, less sensiti
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signifiance of ped to a business
help deicde hw consumers will react to change in price. they can cut costs-more pontential profit without disturbing demand. they can cut the price boostin demand, increasing revenue and maybe profit, especially if unit costs are reduced by bulk buya
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what is income elasticity of demand
meaures the responsiveness of deman to a change in consumers real income
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normal goods numerical value
positive figure, responds proportionately to a change in income, demand is very sensitive, demand is elastic
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luxury good numerical value
income elasticity of femand more than +1. when people are better off, buy more of it such as holidays
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inferior good numerical value
negative, demand falls as income rises such as people not buying tesco brand juice and more expensive brand
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factors affecting income elas of demand - attractiveness ofa product to a consumer
degree of attractiveness of product- if its an absolute must people feel the need to get it even if their income aint great, peoples desires and loyalty may make it a necessity, low income, positive income elasticity.
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factors affecting income elas of demand - how large a proportion of their income is spent on a item
most people its a car that takes a large chunk from their income, positive income but at low level, under +1
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signif of income elas to a business
help managers decide how sensitive their product is when income changes. they can use information to forecast sales
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signif of income elas to a business - is a companys main product is a highly income- elastic luxury brand the business can?
focus on a new development on a value for money brand for people under financial crisis, then if in recession there will be strong sales for the inferior product. also more cautious on financial side, keepingextra strong cash flow to cope w/ downturn
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Card 2

Front

what is an entrepreneur

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someone who makes a business idea happen, either through their own effort or by organising others to do their work

Card 3

Front

what is a autocratic manager

Back

Preview of the front of card 3

Card 4

Front

traits for autocratic

Back

Preview of the front of card 4

Card 5

Front

what is a democratic manager

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Preview of the front of card 5
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