Assumed knowledge

Question 1

Profit

Answer 1

Is the amount of money earned by a business. Income (revenue) minus the costs (expenses)

Question 2

Goods

Answer 2

Tangible - meaning it can be bought and consumed at a later date (e.g water bottle)

Question 3

Services

Answer 3

Non tangible - meaning it is consumed at the time of purchase (e.g haircut)

Question 4

Determining business size

Answer 4

Key factors - 
No. of employees 
No. of owners 
Market share 
Legal structure 
Who makes decisions 
Sources of finance

Question 5

Small business

Answer 5

Under 20 employees

Independently owned and operated by usually one or two people

Legal structure - sole trader, partnership

E.g - corner store & local mechanic

Question 6

Medium business

Answer 6

From 20 - 199 employees

Owned & operated by a few people and some private share holders

Legal structure - partnership, private company

E.g - hotel & engineering factory

Question 7

Large business

Answer 7

From 200 + employees

Owned by thousands of shareholders

Legal structure - public company

E.g Woolworths & Qantas

Question 8

Stake holder

Answer 8

A stakeholder are those who have an interest in an organisation or those who could be affected by the decisions made by the organisation.

E.g employees, government, society, suppliers, consumers and shareholders