Objectives And Strategy- Risk And Undertainty Flashcards Preview

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Flashcards in Objectives And Strategy- Risk And Undertainty Deck (18)
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1
Q

What is contingency planning?

A

Planning for unexpected events, especially those that pose a severe threat to the success/survival of the business

2
Q

How do you prevent a hostile takeover?

A

Owning 51% of shares of a business

3
Q

How should prevent gearing?

A

Maintaining good cash flow

4
Q

How do you prevent only having one major supplier or customer,

A

Securing more that 1

5
Q

What are the 6 steps in the flow chart of creating a contingency plan?

A
Identify potential risk 
Brainstorm solutions 
Select appropriate solution 
Formalise 
Practise 
Adjust
6
Q

What are 3 advantages of contingency planning

A

Reduce risks
People won’t panic
Showing potential investors they are capable

7
Q

What are 3 disadvantages of contingency planning

A

Opportunity cost
Waste of time
Difficult to plan for some crisis

8
Q

Name 5 types of risk

A
Recession 
Hostile takeover 
Strikes
Contamination 
Failure of new product
9
Q

What are 4 different ways to deal with risk

A

Share/deflect risk
Make contingency plans
Treat it as opportunity
Adapt business to deal with it

10
Q

What is continuous data?

A

Data that can be spilt up e.g. Shoe size

11
Q

What is discrete data?

A

Data that cannot be spilt up e.g CDs you own

12
Q

What do histogram show?

A

Continuous data

13
Q

How do you work out frequency?

A

Class width X frequency density

14
Q

What are 2 advantages of histograms?

A

Good for large sets of data because they can be grouped within intervals
Good visual way to represent information

15
Q

What are 2 disadvantages of histograms?

A

Cannot determine actual figures

More difficult to compare 2 sets of data

16
Q

what is an index number?

A

A number that measures the changed in a variable over time

17
Q

How do you work out index numbers?

A

Price for year / price for base year, X 100

18
Q

If when working out an index number you have a weight them how do you calculate the index number?

A

Divide new by base and times by weight