Chapter 13: Critical Issues in Business Success and Failure

Question 1

A _____ ____ is a process that establishes the current skills levels of employees and future skills requirements
What’s missing?

Answer 1

Skills audit

Question 2

A _____ ________ is a database containing information on the skills, abilities and qualifications of existing staff
What’s missing?

Answer 2

Skills inventory

Question 3

All business must pay close attention to a number of ______ ______ which include:
• Having a business plan
• Managing employees
• Analysing trends
• Identifying and sustaining competitive advantage
• Avoiding overextension of financing and other resources
• Using technology
• Considering economic conditions
What’s missing?

Answer 3

Critical issues

Question 4

________ are learning that teams:
• Make more informed and creative decisions
• Work without the need for close supervision
• Create greater levels of employee cooperation
• Provide improved customer service and production output
What’s missing?

Answer 4

Businesses

Question 5

_____ ______ is a process of investigating changes over time and looking for a pattern in order to predict the future
What’s missing?

Answer 5

Trend analysis

Question 6

\_\_\_\_\_ \_\_\_\_\_\_ helps forecast factors such as:
• Potential sales
• Total revenue
• Total operating costs
• Gross and net profits
• Availability of labour 
What's missing?

Answer 6

Trend analysis

Question 7

The use of a _______ ____ is essential because:
• They allow the owner to clearly define the goals and future projections
• They assist in securing of finance from banking institutions or investors
• They reflect the skills and abilities of the business owner
What’s missing?

Answer 7

Business plan

Question 8

________ ________ refers to the strategies used by a business to gain an ‘edge’ over its competitors
What’s missing?

Answer 8

Competitive advantage

Question 9

Which strategy is this:
• Efficiency of operation 
• Low-cost labour
• Economies of scale
• Technology

Answer 9

Price/cost strategy

Question 10

The concept behind the _________ strategy is to offer customers something that is not already offered by business rivals
What’s missing?

Answer 10

Differentiation

Question 11

A business can \_\_\_\_\_\_\_\_ financially by:
• Using hire purchase
• Purchasing excess stock
• Employing too many staff for the business's current needs
What's missing?

Answer 11

Overextend

Question 12

______ is a long-term source of borrowing for businesses and it involves the payment of money for the use of equipment that is owned by another party
What’s missing?

Answer 12

Leasing

Question 13

Ways a business can prevent ________ financially include:
• Business planning
• Avoiding an over dependence on debt financing
• Long-term financially planning
• A small start
What’s missing?

Answer 13

Overextending

Question 14

__________ available to a business include:
• Customer transaction (EFTPOS)
• Communication equipment (phones, fax machines)
• Transportation of products
• Machinery (computers, robotic machines)
• Internet and intranet

Answer 14

Technologies

Question 15

_______ is a local or restricted communications private network
What’s missing?

Answer 15

Intranet

Question 16

__-_______ is using the internet to conduct business

What’s missing?

Answer 16

E-business (electronic business)

Question 17

__-_______ is the buying and selling of goods and services via the internet
What’s missing?

Answer 17

E-commerce (electronic commerce)

Question 18

Economic conditions that promote business \_\_\_\_\_\_\_ include:
• High levels of consumer spending
• Falling unemployment
• Increased production
Is this business success or failure?

Answer 18

Success

Question 19

Economic conditions that lead to business \_\_\_\_\_\_\_ include:
• Lower levels of consumer spending
• Rising unemployment
• Decreased production
Is this business success or failure?

Answer 19

Failure

Question 20

A nation’s economy will experience will experience periods of _____ and _______
What’s missing?

Answer 20

Boom and recession