Unit 5 Short Questions

Unit 5 Short Questions

Year	Question	Topic
2013	4	True or false
2012	7	Expansion
	10	Break Even Analysis
2010	2	Product development
	6	Break Even Analysis
2009	4	Market Research
	9	Production
2008	7	Finance
2007	9	Break Even Analysis
2006	9	Finance
2005	9	Production
2004	7	Production
	9	Feasibility
	10	Break Even Analysis

Year	Question	Topic
2013	4	True or false 1. False 2. False 3.True 4. False 5.True
2012	7	Expansion Merger ·         Inorganic expansion A merger involves  two businesses join together to form one larger, stronger business. ·         In a merger the businesses join together permanently. This is a long term agreement between the businesses and control is shared Irish Permanent and TSB merged to for PermanentTSB Franchise ·         Organic expansion Franchise is Natural, slow internal expansion ·         The franchise is controlled by the franchiser This is when an original owner (franchiser) grants permission to other entrepreneurs (franchisee) to use their idea, as they created it for a fee.Supervalu is a Franchise
	10	Break Even Analysis BEP in Units: 10,000 in euros € 450,000 Profit at Forecast € 125,000   ·                     The business has made enough revenue to cover all costs When the business passes the breakeven point it then enters the margin if safety.  The business makes a profit at this stage.
2010	2	Product development Prototype development ·         Producing 1 working unit of the product This cycle is the only method for refining the original design to create a fully functioning product ·         Can be a lengthily and costly process Test Marketing ·         A type of field research Assess potential customers reactions to the trial product.  Selling a limited number of products to the market ·         Changes can be made after this It can be used to see whether or not the public will buy the product, how the product may need to be adjusted to make it appealing to the public, and how members of the public interact with the product.
	6	Break Even Analysis Break even point in units- 4,000 units Break even point in euro-€40,000 (ii) Profit at forecast sales- €30,000 (iii) Margin of safety- 6,000 units
2009	4	Market Research Desk ·         Research based on secondary sources of information  research that has already been conducted by others. ·         Internal and external sources of information may be used in desk research Internal Sources of Information: Company Reports, Management Accounts, Marketing Plan, Company Strategy, Customer Feedback etc External Sources of Information: Websites (e.g. for financial information www.finfacts.ie, Irish Finance Portal), Reports from state agencies (e.g. CSO, Enterprise Ireland, ESRI, FÁS), Example: The total number of cars sold in the first quarter of 2009 can be found through the research conducted and published by the CSO or Society of the Irish Motor Industry (SIMI). Field ·         Research based on primary sources of information. Field research (primary research) seeks to discover new detailed information about the target market. ·         Market research methods used may include:  Questionnaires Observation Sampling Personal Interviews etc. Example: Car dealership checking satisfaction rating of customer purchasing new car in relation to car and experience of dealership may use questionnaire
	9	Production Job Production Refers to the production of a single customised product Worker: skilled Cost :Expensive Machinery : often done by hand e.g. a bespoke oak kitchen, wedding dress etc. Batch Production Refers to the production of certain quantities of identical products at the same time/in one production run Worker: semi skilled Cost :less Expensive Machinery : flexible machinery   e.g. loaves of bread, school textbooks etc.
2008	7	Finance Medium Source Leasing Why? ·         Matching principle The length of the finance should match the life of the product.  Expect to have the van 1-5 years before needed an upgrade ·         Upgrade to latest model With leasing it is easy to change the product (Van) without changing financial position.
2007	9	Break Even Analysis Name Break Even Chart Label 1 Fixed Costs Label 2 Total Costs (Fixed and Variable) Label 3 Total Income/Revenue (Income from Sales)
2005	9	Production Job Batch Job Job
2004	7	Production Job Production The product is produced to a specific customer order. It is a once-off production unit. It is not produced to be held in stock. High level labour skills are required. Example Wedding dress Batch Production The production is not continuous. The batch may be repeated again in time. A certain number, quantity or group of products is made at the one time. Example: the baking of bread. Mass Production Production of huge numbers of the same products. There is non-stop continuous production of identical products. Produced for stock and then sold. Example: toilet roll
	9	Feasibility ·         A market study conducted to research the viability of a product/business idea It assesses the viability of a business/product proposal. The study is conducted in such away as to confirm or otherwise the possible success of a product/idea in a target market. ·         A feasibility study attempts to answer questions like: Should the product be produced or the service provided? Will the sales increase and by how much? How much will it cost to develop? Can the business afford it? When, and to what extent, will the profits of the enterprise rise because of the new product?
	10	Break Even Analysis Label diagram