Business EXAM Flashcards
What does RBA stand for?
Reserve Bank of Australia
What must a business always consider?
Pricing
What is a USP?
Unique Selling Proposition
What does SME stand for?
Small to medium
How many employees in a Micro business?
1 - 4
How many employees in a Small business?
5 - 19
How many employees in a Medium business?
20 - 199
How many employees in a Large business?
200+
What does BLC stand for?
Business Life Cycle
What is the third stage of the BLC? Explain
Growth - Business’ profits are increasing with increasing popularity/awareness
Name a business in the Growth BLC?
Tesla
What is the fifth BLC? Explain
Post Maturity -
(After Maturity) business will either decline OR innovate and increase profits OR business will maintain.
Name a business currently in the Post Maturity BLC?
Decline/Innovate - Explain
Decline:
Taxi’s
Book stores
Innovate:
Polaroids
What is the first BLC? Explain
Seed - Business is just an idea
What is the fourth BLC?
Maturity - business’ profits increase a little/strong customer base/slight increase market share
What is an example of a business in the Maturity BLC?
McDonald’s / Myers
What is the second BLC? Explain
Start Up - No one really knows about it yet / owners can’t take profit yet as business is still to small
What business’ are currently in the Start Up BLC?
Link Tree
What are the advantages and disadvantages of a business in the Growth BLC?
Advantages:
- increase market share
- increase profit
Disadvantages:
- demand not being met? (running out of stock/too big too fast)
- keeping customers?
- more staff
What are the advantages and disadvantages of a business in the Maturity BLC?
Advantages:
- profits are stable
- market share still increasing?
Disadvantages:
- competition/keeping customers
What are the advantages and disadvantages of a business in the Post-maturity BLC?
Advantages:
- possible innovation = increased market share/profits
Disadvantages:
- possible decline = out of business?
What are the 4P’s in a successful product?
- PRODUCT - any good?
- PRICE - affordable?
- PLACE - where?
- PROMOTION - advertising/marketing?
To analyse in business is to what?
SWOT analysis
What does SWOT stand for?
Strengths
Weaknesses
Opportunity
Threats
Describe the Business Environment?
Internal:
- Employees (size of business)
- Owners
- Structure
- Culture
Operating:
- Suppliers
- Competiton / Customers (who?)
- Interest groups
MACRO:
STEEPLE
What does STEEPLE stand for?
Socio Cultural (trends)
Technology (apps)
Environment
Economy ($)
Politics
Legal (fines/gov)
Ethics
What does CEO stand for?
Chief Executive Officer
What is HR?
Human Resources
What is Finance?
Accounting $$
Marketing is what exactly?
Advertising/Brand
What does EFTPOS stand for?
Electronic Funds Transfer Print Of Sale
What are the three most common types of business structures in Australia?
Sole Trader - 1 person responsible for whole business
Company - owners have limited liability
Partnership - 2-20
What is a Sole Trader? Advantages? Disadvantages?
Business owned by one person
Advantages: All decisions made by person/all profits are owners
Disadvantages: High risk/unlimited liability
What is a Partnership? Advantages? Disadvantages?
Owned by 2 - 20 people
Advantages: Share decisions
Disadvantages: Unlimited Liability
What is a Private Company? Advantages? Disadvantages?
1 - 50
Advantages: Shared decisions/increase funds/limited liability (owners only pay investment amount)
Disadvantages: More costly/rules
What is a Public Company?
5+
Owned by public
Limited liability/buy on stock exchange/private individuals buy on ASX (Australian Securites Exchange)
What does ASX stand for?
Australian Securites Exchange
What does Industry sales ÷ Business sales =
Market Share %
What is a Vision?
Owners hope for future of the business
What is a Mission Statement?
Outlines ambitions and what achievements it hopes to make for its stakeholders.
What is a SMART goal?
Specific
Measurable
Achievable
Realistic
Timely
What is a challenge faced by businesses in the seed BLC?
Figuring out location/finance/website/marketing/time
What is the difference between a profit-based and a non-for-profit business?
Profit based:
- objective - $$$$
Not for profit:
- objective - charity/volunteer
What is GST?
Goods and Services Tax
What are the four key business functions?
Marketing
Operations
HR
Finance
What is the difference between a strategy and a tactic?
Strategy:
Plan/Goal
Tactic:
Individual steps
