Exam (elaborations)
IB Business TTT Questions and Answers 2024
- Course
- Institution
Exam of 13 pages for the course TTT at TTT (IB Business TTT)
[Show more]
Content preview
IB Business TTTAbove the line promotion - answer Above the line promotion is promotion that is carried
out through independent media that enable a firm to reach a wide audience easily. Ex:
Newspapers, magazines, and TV
Absorption pricing - answer Good is priced by the amount of direct and indirect costs
used in the production of good. Production of the good is costed using absorption
costing and then priced accordingly. Ex: The rent on a building may be split across the
production of different goods by looking at the floor space used for the production of
each good and split accordingly. Labor expenses may be split according to the number
of people working on the production of each good.
Accountability - answer BASICALLY RESPONSIBLE. The area to which an individual or
department within a firm is held responsible for a particular policy or activity. If the firm's
management structure is clear then individuals should be aware of the authority that has
been given to them and therefor the area they are accountable of.
Acid test ratio - answer The current ratio with stock and work-in-progress deducted from
the current assets. A better measure of short-term liquidity than the current ratio. Value
of the acid test ration should be greater than one to ensure that the firm can meet their
short-term liabilities(responsibilities) from the liquid current assets, but the exact
preferred value will depend on the particular industry.
Advertising - answer Way of trying to increase the level of demand for a good or service
by making its availability known to consumers. There are various media where adverts
may be placed including television, radio and magazines. Advertising can be either
informative or persuasive advertising but the aim of both is to shift the demand curve to
the right.
Advertising elasticity of demand - answerA measure of the responsiveness of the
demand for a firm's product it to changed in the level of advertising spending.
Calculated by diving the percentage change in quantity demanded by the percentage
change in advertising spending. Figure of greater than one - elastic and indicate that
demand was responsive to advertising with a larger proportionate change in demand
than advertising spending. If the figure is below one, demand would be described as
inelastic or unresponsive to advertising spending.
Alienation - answerAlienation is the process where workers become dissatisfied with the
work they are doing. This is particularly likely where the tasks are boring in nature.
Ancillary firms - answerFirms which provide goods and services for other firms. In other
words suppliers to other firms.
, Ansoff Matrix - answerLooks at the degree of risk associated with different growth
strategies. Acts as a way of classifying marketing strategies and growth. Shows which
strategy is most appropriate to which type of product. Classifies strategies into market
penetration, new product development, market development, and diversification.
Appraisal - answerMethod for judging the performance or effectiveness of an employee.
Method most commonly used is a one-to-one interview between the employee and their
line manager that focuses on various aspects of the employees performance. As a
result of the appraisal performance targets may be set for the employee and career
prospects and training requirements may also be discussed.
Appropriation account - answerSection of the profit and loss account that shows how a
firm has used or distributed their post-tax profits. Some of the profits may be paid to
ordinary shareholders as dividends and some may be retained for re-investment by the
firm.
Asset-led marketing - answerWhere the firm bases its marketing strategy on its
strengths (assets) rather than simply the needs or wants of the customer.
Average cost pricing - answerMethod of pricing where the firm finds the average cost of
the product (the unit cost) and then sets their price by adding a mark-up onto the
average cost. For example, the average cost may be $10 per unit and the firm may add
a mark-up of 10% giving a price of $11.
Average costs - answerThe amount spent on producing each unit of output. The
average cost is calculated by dividing the total cost by the level of output. This gives the
cost per unit which is made up of two elements - the average fixed cost and the average
variable cost.
Balance sheet - answerOne of the financial statements that limited companies and
PLCs produce every year for their shareholders. It is like a financial snapshot of the
company's financial situation at that moment in time. It is worked out at the company's
year end, giving the company's assets and liabilities at that moment. It is given in two
halves - the top half shows where the money is currently being used in the business
(the net assets), and the bottom half shows where that money came from (the capital
employed). The value of the two halves must be the same - capital employed = net
assets, hence the term balance sheet.
Batch production - answerA method of production where the process is split into a
number of different operations. Each of those operations is then carried out on the
whole batch before another batch is started. This method of production is often used
where the demand for a product is constant rather than just a one-off demand.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller julianah420. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $16.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75323 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now