Business Studies Study

Question 1

Define Innovation

Answer 1

Either creating a new product, service or process or significantly improving an existing one.

Question 2

Define Incorporation

Answer 2

The process companies go through to become incorporated, i.e. become a registered company and a separate legal entity.

Question 3

Define Liquidation

Answer 3

When an independent, suitably qualified person - the liquidator - is appointed to take control of the business with the intention of selling all the company’s assets in an orderly and fair way in order to pay the creditors.

Question 4

Define Oligopoly

Answer 4

Where a small number of larger firms have a greater control over a market, e.g. car manufacturers.

Question 5

Define Monopoly

Answer 5

Complete concentration by one firm in the industry, e.g. Australia Post.

Question 6

Define Differentiation

Answer 6

Making a product or service different, unique or better than its rivals, e.g. selling a computer with extra service, lessons or added software.

Question 7

Define Marketing

Answer 7

A total system of interacting activities designed to plan, price, promote and distribute products to present and potential customers.

Question 8

Define Competitive Advantage

Answer 8

Refers to the strategies used by a business to gain an ‘edge’ over its competitors.

Question 9

Define Receivership

Answer 9

Where a business has a receiver take charge of the affairs of the business. Unlike liquidation, the business may not necessarily be wound up.

Question 10

Define Outsourcing

Answer 10

The use of external sources or businesses to undertake business functions or activities for the business.

Question 11

Define Acquisition (Hint: There 2)

Answer 11

Relating to takeover, occurs when one business takes control of another business by purchasing a controlling interest in it.

Recruiting the right staff for roles in a business.

Question 12

Define Training and Development

Answer 12

Training: Refers to the process of teaching staff how to perform their job more efficiently and effectively by boosting their knowledge and skills.

Development: Refers to activities that prepare staff to take greater responsibility in the future.

Question 13

Define Maintenance

Answer 13

Refers to a set of processes and practices which aim to ensure the continuous and efficient operation of machinery, equipment, and other types of assets typically used in business.

Question 14

Define Separation

Answer 14

The ending of the employment relationship. There is involuntary separation, which the ending of the employment relationship, and voluntary separation, which occurs when an employee chooses to leave the business of their own free will.

Question 15

What are the 5 industry sectors?

Answer 15

1) Primary

Question 15

Identify and define the 5 industry sectors.

Answer 15

1) Primary - includes those businesses involved in the collection of natural resources.
2) Secondary - involves taking a raw material and making it into a finished or semi-finished product.
3) Tertiary - involves performing a service for other people, e.g. health workers, banks, museums.
4) Quaternary - includes services that involve the transfer and processing of information and knowledge, e.g. finance, education.
5) Quinary - includes all services that have traditionally been performed in the home, e.g. hospitality, tourism, childcare.

Question 16

Identify the parts Business Life Cycle.

Answer 16

1) Establishment
2) Growth
3) Maturity
4) Post-maturity