BUISNESS

Question 1

Q: What are the characteristics of critical path analysis in transformation processes?

Answer 1

It is a scheduling tool that helps identify which parts of the repair process can be completed simultaneously to reduce overall repair time.

Question 2

Q: What is a disadvantage of leasing property?

Answer 2

The business does not own the property at the end of the lease period, and maintenance is typically not covered.

Question 3

What are the advantages of using a mortgage as a long-term finance source?

Answer 3

Ownership of the property once repaid and potential security for the loan.

Question 4

How can a business improve accounts receivable turnover?

Answer 4

By using debt collection agencies, factoring, or offering shorter interest-free periods to collect debts faster.

Question 5

Why is liquidity important in financial management?

Answer 5

It indicates the ability to pay current debts, helping maintain a good credit rating and avoid additional fees.

Question 6

How does a situational analysis change when expanding into Europe?

Answer 6

Strengths and weaknesses shift, e.g., losing loyal customers and needing to train new staff, while opportunities and threats may also change.

Question 7

How can employee development improve workplace culture?

Answer 7

By offering training in areas like team building and communication, which can boost morale and reduce turnover.

Question 8

Why are monitoring and controlling important in marketing?

Answer 8

They help compare actual results with planned results, allowing necessary adjustments to achieve marketing objectives.

Question 9

How does an autocratic leadership style affect employee performance?

Answer 9

It may intimidate employees, leading to high stress and decreased productivity.

Question 10

What is the strategic role of human resources in a retail store?

Answer 10

To acquire, develop, and maintain staff, creating a positive business culture that aligns with business goals.

Question 11

What is the purpose of quality assurance?

Answer 11

Ensuring that repairs meet established standards, such as Australian quality assurance standards, to differentiate from competitors.

Question 12

What is quality control in the context of a repair business?

Answer 12

Checking quality at various points in the repair process to ensure repairs meet customer expectations.

Question 13

How does process layout benefit a business?

Answer 13

: It organises equipment and materials efficiently, speeding up the process and reducing costs.

Question 14

What is a key performance objective for a burger business, and why is it important?

Answer 14

Dependability is crucial because customers expect their burgers to be served consistently in terms of time, size, temperature, and taste. This builds trust and repeat business.

Question 15

Explain the advantages of the Just-in-Time (JIT) inventory management strategy.

Answer 15

JIT allows businesses to order and receive fresh produce as needed, minimizing waste and reducing storage costs. This approach optimizes inventory levels and can improve cash flow.

Question 16

What are the inefficiencies associated with a narrow kitchen layout in a restaurant?

Answer 16

: A narrow kitchen layout forces employees to navigate back and forth between workstations, increasing the risk of accidents and wasting time. This can lead to slower service and reduced customer satisfaction.

Question 17

How does the layout of a restaurant influence its profitability?

Answer 17

A layout with more tables maximizes seating capacity, enabling the business to serve more customers at once, thus increasing revenue potential compared to a layout with fewer tables.

Question 18

What are the potential effects of an increase in the minimum wage on a business?

Answer 18

Increased minimum wage can lead to higher operational costs for the business. This may force the business to raise prices for consumers or cut back on expenses, potentially impacting profitability.

Question 19

What are minimum employment standards, and why are they significant?

Answer 19

Minimum employment standards consist of legally mandated rights such as annual leave and paid public holidays. They protect employees and ensure fair treatment in the workplace, fostering a more positive work environment.

Question 20

How do performance appraisals benefit employers?

Answer 20

Performance appraisals provide valuable feedback to employees regarding their strengths and areas for improvement. They help identify training needs, can motivate high performance through rewards, and support overall workforce development.

Question 21

What is the purpose of the induction process for new employees?

Answer 21

The induction process familiarizes new employees with the workplace culture, policies, and procedures. This helps them integrate into the team more quickly, enhancing their competence and fostering a positive attitude towards their roles.

Question 22

How is the efficiency of a business calculated, and what does it indicate?

Answer 22

Efficiency is calculated as Total Expenses ÷ Total Sales. A lower efficiency percentage indicates that the business is better at managing its resources and minimizing costs relative to sales, contributing to higher profitability.

Question 23

What relationship exists between the expense ratio and a business’s efficiency?

Answer 23

A lower expense ratio (e.g., $0.40 in expenses for every $1 of sales) indicates higher efficiency. If a business reduces its indirect costs while maintaining or increasing sales, it demonstrates effective resource utilization and can improve profitability.

Question 24

Why is understanding gearing important for lenders assessing a business?

Answer 24

Gearing reflects a business’s capacity to meet long-term financial obligations. High gearing might indicate higher risk to lenders, while a manageable level suggests the business can comfortably meet loan repayments.

Question 25

What are the advantages of using debt finance to acquire new stores?

Answer 25

Low Interest Rates: Accessing funds at a relatively low cost (e.g., 4% interest).
Increased Profit Potential: New stores can boost revenue, aiding in debt repayment.
Quick Access to Capital: Debt finance allows for immediate funding without lengthy processes.
Retention of Ownership: The business does not dilute ownership or control, maintaining family management.

Question 26

: Why should a business adopt a marketing approach rather than a selling approach?

Answer 26

The marketing approach focuses on understanding and satisfying customer needs, which is essential in competitive markets. By conducting market research, businesses can develop products that meet customer desires, leading to greater customer satisfaction and loyalty.

Question 26

What promotion strategy could effectively launch a new product range?

Answer 26

Utilizing advertising through television and social media platforms would effectively reach a broad audience, creating awareness of the new product range and encouraging potential customers to engage.

Question 27

Who represents the interests of employees in workplace disputes?

Answer 27

Trade unions represent employee interests. They advocate for their members and provide services such as bargaining during negotiations with employers.

Question 28

What is the difference between voluntary and involuntary separation?

Answer 28

Voluntary separation occurs when an employee chooses to leave, such as through resignation or retirement. Involuntary separation happens when an employee is forced to leave due to reasons like contract expiration, misconduct, or redundancy.

Question 29

How do technological influences affect staff numbers in businesses?

Answer 29

Technological advancements can increase production efficiency, often leading to reduced labor needs. For example, Samsung utilizes CAD and robotics, resulting in fewer assembly jobs.

Question 30

What role does globalisation play in reducing staff numbers?

Answer 30

Globalisation allows companies to outsource jobs to countries with lower labor costs. For instance, Bonds shifted manufacturing offshore to cut costs, leading to job losses in Australia.

Question 31

What is the purpose of a SWOT analysis for a business?

Answer 31

: A SWOT analysis helps a business understand its current position by identifying Strengths, Weaknesses, Opportunities, and Threats, which inform marketing strategies and objectives.

Question 32

: What is competition-based pricing and why might it be effective?

Answer 32

Competition-based pricing sets prices based on competitors. It can help a business enter a new market by:

Pricing below competitors to attract customers.
Matching competitor prices to save on market research.
Pricing above to suggest higher quality.

Question 33

What are the benefits of a standardised marketing strategy?

Answer 33

A standardised marketing strategy enables global consistency in branding, reduces costs through economies of scale, and simplifies operations by avoiding customization for different markets.

Question 34

How can operations management contribute to a business’s goals?

Answer 34

Operations management ensures that processes are efficient, which can enhance product differentiation. For example, expanding from denim-only products to a wider range could attract more customers and boost sales.

Question 35

What strategies can a business adopt to address technological influences?

Answer 35

To manage technology impacts, a business might implement advanced payment methods (e.g., smartphones, EFTPOS) to enhance customer experience and speed up service.

Question 36

What financial strategy can improve efficiency in accounts receivable collection?

Answer 36

Offering discounts for early payments encourages customers to pay faster, improving cash flow. This can be paired with penalties for late payments to further incentivize timely payment.