Business

Question 1

Profit

Answer 1

The primary goal for most businesses is to make a profit by ensuring that revenue exceeds costs.

Question 2

Key roles of a business

Answer 2

profit, employment , choice, innovation and entrepreneurship, wealth creation , quality of life

Question 2

employment

Answer 2

Businesses provide jobs, which in turn give people the means to earn incomes.

Question 3

Choice

Answer 3

Businesses provide consumers with options for products and services.

Question 4

Innovation and Entrepreneurship

Answer 4

Businesses drive innovation by developing new products or improving processes. Entrepreneurs take risks to start new ventures.

Question 5

Wealth Creation

Answer 5

Businesses generate wealth for owners, employees, governments (through taxes), and society.

Question 5

Quality of Life

Answer 5

Businesses can enhance the overall standard of living by providing valuable products and services and fostering economic growth.

Question 6

Factors Influencing Choice of Legal Structure

Answer 6

size, ownership preferences, Finance

Question 6

business are classified by

Answer 6

Size, Geographical Spread, industry, legal structure

Question 7

name 5 external influences

Answer 7

economic, legal , social , political , competition

Question 8

Name 5 internal influences

Answer 8

products, location , resources, management

Question 9

what is an internal stake holder?

Answer 9

Employees, managers, and owners.

Question 10

what is an external stake holder

Answer 10

Customers, suppliers, government, and the community.

Question 11

stages of a business life cycle

Answer 11

establishment, growth , maturity , post maturity

Question 12

what is establishment phase

Answer 12

Initial setup of the business, focusing on gaining market presence.

Question 13

what is growth phase

Answer 13

Expansion of market share, customer base, and product offerings.

Question 14

what is maturity phase

Answer 14

Slower growth, business stabilizes but may face competition.

Question 15

what is post maturity phase

Answer 15

Could involve further growth, steady state, or decline.

Question 16

recognize and name the challenges at each stage

Answer 16

In the establishment stage, businesses need capital and marketing to attract customers.
In growth, they may need to manage cash flow and scale up operations.
Maturity brings pressure to innovate and maintain market share.
Post-maturity can involve managing declining sales or repositioning the business.

Question 17

what involves a business decline

Answer 17

Factors include poor management, failure to innovate, or economic downturns.

Question 18

Stakeholder Issues in Liquidation
When companies go into liquidation
who is affected

Answer 18

Employees may lose their jobs and entitlements.
Creditors may not recover what they are owed.
Owners/shareholders may lose their investments.
Customers may lose access to products or services.

Question 19

small businesses?

Answer 19

Small businesses: Sole traders or partnerships, often local or niche.

Question 20

large businesses?

Answer 20

Public companies with global operations.

Question 21

industries?

Answer 21

Industries: Primary (e.g., mining), secondary (e.g., manufacturing), tertiary (e.g., retail), quaternary (e.g., IT services), quinary (e.g., childcare).

Question 22

Business Strategies for Different Stages

Answer 22

Establishment: Focus on marketing, product development, and securing funding.
Growth: Expansion into new markets, hiring staff, and scaling production.
Maturity: Efficiency improvements, product diversification, and maintaining competitive advantage.
Post-Maturity: Renewal through innovation or restructuring to avoid decline.