Business

Question 1

Define business ethics

Answer 1

The moral guidelines and principles a businesses should follow. These are put in place to provide a just and ethical manner and working environment

Question 2

Types of business ethics

Answer 2

Correct wages and entitlements to sick, leave, and holiday pay
Providing a safe working environment for employees and applying OH&S regulations
Follow fair trade practices

Question 3

Three different forms of business ownership

Answer 3

Sole trader
Partnership
Private company

Question 4

Location of business

Answer 4

Choosing the right location for your business will help you business excel. Do this by thinking of your target market, income levels, and accessibility

Question 5

Define creditor

Answer 5

Owing money to another business as a result of acquiring goods or services on credit

Question 6

Define a debtor

Answer 6

When costumes of a business owe them money as a result of buying goods or services on credit

Question 7

Define assets
Current
Non current

Answer 7

Recourses of monetary value controlled by a business
(Things you own or what people owe you)
Current - payback or used within 12 months
Non current
- more than 12 months

Question 8

Define liabilities
Current
No current

Answer 8

These are the present obligations (debts) of the business
Current- obligations due for payment within 12 months
Noncurrent- longer than 12 months

Question 9

Define owners equity

Answer 9

The owners investment in the business. The residual interest in the assets of the entity after deduction of its liabilities.
This is known as the capital and is calculated by subtracting liabilities from assets.

Question 10

Advantages and disadvantages of establishing a business

Answer 10

Advantages are that you are able to make all decisions, and that you don’t have to worry about the existing goodwill
Disadvantages include higher chance of failure as there is no reputation, and it is more expensive, due to setting up costs

Question 11

Define fair trade goods

Answer 11

Purchasing goods with a fair trade symbol. Example coffee beans from ethical suppliers where workers are paid a fair wage.

Question 12

What types of ownership have unlimited liability, and limited liability

Answer 12

Limited liability- private company

Unlimited liability- sole trader and partnership