Bus Man Exam Unit 1 Flashcards
Define the term ‘entrepreneurship’.
Entrepreneurship is the process of starting and running a new business to make a profit by identifying market opportunities.
Q: Identify one successful entrepreneur and describe two characteristics that have contributed to their success.
Elon Musk’s success stems from his visionary thinking and resilience. He envisions revolutionary changes, like making space travel accessible with SpaceX and promoting sustainable energy with Tesla. Despite setbacks, he perseveres, turning failures into learning opportunities. These qualities drive his remarkable achievements as an entrepreneur.
Outline one motivation for starting a business, using an example of an entrepreneur with whom you are familiar.
Desire to Change the World: Elon Musk started SpaceX with the goal of reducing the cost of space travel and making life multi-planetary, driven by a vision to ensure the long-term survival of humanity.Financial independence is a common motivation. For instance, Sara Blakely, the founder of Spanx, started her business with the goal of achieving financial freedom.
Explain how two entrepreneurial characteristics have contributed to the success of an entrepreneur with whom you are familiar.
Jeff Bezos, the founder of Amazon, exemplifies customer focus and long-term vision. His relentless focus on customer needs and his ability to think strategically about the future have been critical to Amazon’s success.
Identify three characteristics that a successful business manager is likely to have. Justify why each characteristic might be needed for a business to be successful.
Leadership: Inspires and guides the team towards achieving the company’s goals.
Decision-making: Navigates challenges and opportunities effectively,
Financial acumen: Manages resources wisely, making informed financial decisions that contribute to the company’s profitability.
Using an example, explain how changing customer needs can provide opportunities for a business idea.
The increasing demand for sustainable products has created opportunities for businesses like Beyond Meat, which offers plant-based alternatives to meat products.
Define the term ‘business opportunity’.
A business opportunity refers to a set of circumstances that allows entrepreneurs to create and establish a new business venture, often arising from unmet needs or changing market conditions.
Explain why it is important for a potential business owner to set goals.
Setting clear goals provides direction, motivation, and a roadmap for the business, helping to focus efforts and track progress towards desired outcomes.
Providing an example of each, distinguish between social goals and financial goals.
Social goals: TOMS Shoes donates a pair of shoes for every pair sold, aiming to make a positive social impact.
Financial goals: A company aims to achieve a specific revenue target, focusing on financial growth and sustainability.
Define the term ‘decision-making’.
Decision-making involves selecting a course of action from available alternatives to achieve a specific objective, considering factors such as risks, benefits, and consequences.
Explain the importance of decision-making in business.
Decision-making drives strategic direction, operational efficiency, and resource allocation, influencing the success and sustainability of a business.
Analyze the relationship between business opportunities and business concept development.
Business opportunities and concept development are closely linked. Identifying a business opportunity involves recognizing unmet needs or gaps in the market. This opportunity is then transformed into a business concept, which outlines how to address these needs with a specific product or service, target market, and unique value proposition. For example, recognizing the growing demand for sustainable transportation led Elon Musk to develop Tesla’s electric vehicles, combining cutting-edge technology with environmental consciousness.
Define the term ‘business concept’.
A business concept refers to the fundamental idea or vision for a new business venture, outlining the product or service offering, target market, and value proposition.
Explain why it is important to assess the market before commencing a business.
Market assessment helps understand demand, competition, and consumer preferences, reducing risks associated with business launch.
Explain how a business has used market research or feasibility studies to assist them with decision-making.
Starbucks uses market research to develop products and select locations, informed by consumer preferences and market demand.
Outline the main purpose of market research.
Market research aims to gather information on consumer needs and preferences to inform strategic business decisions.
Describe two economic contributions that businesses make to the nation.
Job creation: Businesses provide employment opportunities, contributing to economic growth and stability.
Tax revenue generation: Businesses generate tax revenues for governments, supporting public services and infrastructure development.
Explain two ways in which behaving in a socially responsible manner could make a business more profitable in the long run.
Behaving in a socially responsible manner can make a business more profitable in the long run by enhancing brand reputation and mitigating risks. A strong reputation for ethical and sustainable practices attracts loyal customers and can command premium prices, boosting sales. Additionally, adhering to ethical standards helps avoid costly legal issues and reputational damage, ensuring more stable financial performance and greater investor confidence.
Describe two methods by which the Australian government supports and funds businesses to undertake research and development that fosters innovation and entrepreneurship.
R&D Tax Incentive: Provides tax offsets for eligible R&D activities, encouraging innovation investment.
Grants and funding programs: Direct financial support to businesses for R&D projects, promoting innovation and entrepreneurship.
: Explain how council grants for new businesses can foster a culture of business innovation and entrepreneurship.
Council grants reduce startup costs and provide financial support, incentivizing risk-taking and innovation among aspiring entrepreneurs.
What is the internal environment?
Factors and stakeholders within the organization affecting operations, such as employees, management, culture, and organizational structure.
Outline one stakeholder in the internal environment.
Employees play a crucial role in the day-to-day operations and success of the business.
Outline one similarity between a sole trader and a partnership.
Sole Trader: A sole trader is a business owned and operated by a single individual who assumes all responsibilities and liabilities.
Partnership: A partnership is a business owned and operated by two or more individuals who share responsibilities and liabilities.Both have owners liable for debts. However, sole traders have single ownership, while partnerships involve multiple owners.
Compare private and public companies, with an example of each.
Private companies are privately owned, while public companies are owned by shareholders. Example: Private - IKEA, Public - Apple Inc.
Differentiate between incorporated and unincorporated businesses.
Incorporated entities have a separate legal identity, while unincorporated ones do not. Example: Incorporated - Corporation, Unincorporated - Sole trader.
Discuss one advantage and one disadvantage of a private company going public.
Going public enables a private company to raise substantial capital through the sale of shares, but it also entails increased administrative and compliance costs. It grants access to a larger pool of capital but brings increased regulations and scrutiny.
Explain why a business owner might choose a sole trader structure.
Sole traders may choose this structure for its simplicity in operation and decision-making, as well as the ability to directly reap all profits. It offers simplicity and control over decision-making.
Describe various business models with examples.
Each business model serves different customer needs and market segments, requiring unique strategies for success. Models include online, direct-to-consumer, bricks and mortar, social enterprise, franchise, importer, and exporter.
Propose a suitable business model for a new pizza recipe. Highlight one advantage and one disadvantage.
A franchise model offers brand recognition and operational support, but franchisees must adhere to strict franchisor guidelines and pay ongoing fees. While a franchise model offers brand recognition and operational support, franchisees must adhere to strict franchisor guidelines and pay ongoing fees.
Discuss the costs and benefits of purchasing an existing business compared with establishing a new one.
Acquiring an existing business mitigates startup risks by inheriting a proven business model and established customer base, but it may involve a higher initial investment compared to starting from scratch. Purchasing an existing business allows for immediate cash flow
Explain the distinction between natural and capital resources.
Natural resources are essential inputs for production processes, while capital resources represent the tools and equipment used in production. Natural resources, like water and wood, are from nature, while capital resources, such as machinery and tools, are man-made.
Identify two business resource needs relevant to a bakery and provide examples.
Bakery businesses require raw materials like flour and sugar for product manufacturing, as well as equipment such as ovens and mixers for production processes. Ingredients like flour and equipment such as ovens are essential for a bakery’s operations.
Explain two factors to consider when selecting a business location.
When selecting a business location, two crucial factors to consider are the proximity to the target market and the cost of operations. Proximity to the market ensures reduced transportation costs, increased convenience, and better accessibility, leading to higher sales and customer satisfaction. Simultaneously, opting for a location with affordable operating costs, encompassing expenses like rent, utilities, taxes, and labor, aids in optimizing financial resources and enhancing competitiveness within the market.
Describe three types of locations from which a business can operate.
Businesses can operate from retail storefronts, home-based setups, or online platforms. Retail storefronts provide high visibility and foot traffic, home-based businesses offer cost savings and flexibility, and online platforms enable global reach and scalability.
Describe two sources of finance available to establish a business and discuss one advantage and one disadvantage of each.
Bank loans provide access to capital without relinquishing ownership control, but they require regular loan repayments and may be difficult to obtain without sufficient collateral. Personal Savings, which they provide flexibility, perserving ownership control. But relying on this has a limit which, it may redue the growth potential in your business.
Describe two business support services suitable for an entrepreneur in the initial planning stages.
Financial services provide assistance with financial planning, budgeting, and securing funding, while technological support helps businesses leverage digital tools for efficiency and growth. Legal services provide guidance on regulatory compliance, while mentoring offers advice from experienced professionals.
Explain the term ‘SWOT analysis’ and its application in evaluating a business’s current situation.
a strategic planning tool used to assess the strengths, weaknesses, opportunities and threats of your business. Developing a SWOT analysis can help you look at your business in a new way and from different directions.
