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Business Vce > Exam For Business > Flashcards

Exam For Business Flashcards

1
Q

What is the importance and necessity of organisations

A

Team- together everyone achieves more

Important source of employment and career direction

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2
Q

Common characteristics of an organisation?

A

Two or more people
Formal or informal structure
Formal- clearly defined rules and regulations
Informal- loose work relationships

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3
Q

Revenue

Market share

A

What a business earns in the way of sales or fees

A percentage of total sales in a market held by on brand or business

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4
Q

Differences between businesses?

A

Size of assets, revenue
Nature of their operations
Who runs it- sole trader etc

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5
Q

What are the two types of oranisations?

A

For profit- focus is making money, assets and market share e.g Nike

Non for profit- offering a service or charity, e.g Red Cross

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6
Q

Objectives of organisations?

A

There are two objectives financial and social objectives!

Financial- profit, market share and growth
Social objectives- training, services to the community, environmental goods e.g body shop

Mission and visual statement are also objectives

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7
Q

Mission statement-

A

A global statement that reflects an organisation reason for being the way it will be managed!

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8
Q

What is the difference between micro and small business?

A

Micro- fewer than 5 employees, most work from home

Small business- independently owned, owners and managers are the main decisions makers, hires 20 people and 100 for manufacturing

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9
Q

How small business helps our economy?

A

95% of total businesses

Nurturing and developing entrepreneurs, be outsourced, hire new kids who spend money!

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10
Q

What are the characteristics and give examples of the three broad types of business activity!

A

Primary- farmer and taking out natural resources from the earth

Secondary- fishing cannery. Manufacturing products, makes the patties

Tertiary- Nike- selling goods and services at an agreed price
1/2
Quaternary- finance insurance property education
Quinary- hospitality, health personal

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11
Q

A business is within the private sector? What are the two sub titles

A

Unincorporated- sole trader and partnership

Incorporated- private companies, public

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12
Q

What are the two main types of legal structure?

A

Incorporated and unincorporated!

Incorporated is registered and has a seperate legal entity

Unincorporated- sole trader or partnership and will have private assets siezed

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13
Q

What is an organisation?

A

2 or more people who work together to achieve a set of goals and objectives

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14
Q

What is privatisation?

It is when a government operates business is sold to the private sector

A

Public sector- government run, health, education and defence

Private- owned by individuals

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15
Q

Distinguish between small medium and large business!

A

Size- small 5-20 medium 20-200 large 2000+

Legal structure- small sold trader partnership
Medium- partnership company
Large- company, cooperative

Ownership- small private
Medium- private and public
Large- private and public

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16
Q

What are the two levels of external environment?

A

The macro environment- consists of legal, environmental and economical factors which have an impact on a business to see whether they are financial, or paying their taxes!

The operating environment- consists of consumers competitors and lobby groups which have an impact on a business when the comp rise or lower prises or consumers don’t want to pay the prices

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17
Q

What is organisational stakeholder and stakeholder?

A

Employee or customer who is involved with an organisation which therefore has resposibilies towards the activities and interests

An individual or group that have a vested or direct interest with the activities of an organisation!

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18
Q

ACCC is responsible for promoting good business practices!

A

Ethics is a set of principles that an organisation need to follow!

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19
Q

Stakeholders interest and issues

A

Shareholder- receive dividends, socially responsible behaviour

Directors- ensure good ethics and social responsibility

Employees- to receive a fair wage, safe workplace

Customers- obtain high quality goods

20
Q

Define KPI and how it relates to benchmarking?

A

KPI measures used to evuate the performance of a business in terms of efficiency and effectiveness! This relates to benchmarking as u can compare ur KPI to the industry standard

21
Q

KPI- financial side?

A

Amount of assets, liabilities net profit and owners equity

22
Q

Non financial KPI?

A

You have to measure staff satisfaction, environmental impact and levels of social responsibility!

23
Q

Social responsibility- ethical responsibility where a government, organisation or individual has a duty to society; it’s about improving relations with stakeholders

A

Triple bottom lining- report on financial, social and environmental outcomes!

24
Q

Form of ownership structure!

A

Sole trader- usually a unincorporated business that has unlimited liability,

Partnership- combines 2 or more people
Has a partnership agreement that gets them away from personal debt! But it will end if the person leaves

Company- incorporation- owners are shareholders 2 forms of company private and public

25
Q

What is the difference between private and public listed company?

A

Private- restrict to 50 shareholders, pty ltd, family companies

Public- unlimited shareholders, ltd, on the stock exchange

26
Q

Options for creating or buying a business?

A

Starting from scratch- best option
Adv- complete control, money is yours, no goodwill, own touches
Dis- more work, longer to establish, harder to start and make money

Buying an existing business-
Adv- simpler process, existing suppliers and contacts,
Dis- buying someone else’s failure, overpriced

Buying a franchise- paying for the right to use another business
Adv- low risk or fail, tested and succeeds, assistance
Dis- cannot make it ur own, a lot of pavements

27
Q

Who does a business register with?

A

Must be registered on ASIC

28
Q

How does zoning by laws affect a business!

A

A business can only build in a retail zone,

Others they are NOT allowed to are light industrial, heavy industrial, commercial and residential only!

29
Q

Social responsibility?

A

Ethical responsibility where by an individual, organisations or group has a duty to society at large; about keeping key relations with stakeholders

30
Q

Define ethics!

A

A set of moral principles that an organisation needs to follow

31
Q

Why would you have a business plan?

A

To optimise chances of success, it states what objectives u have and how you will achieve them!

32
Q

Components of a business plan?

A 
Cover
Executive summary
Mission statement 
Business profile
Products
Marketing plan
Operational plan
Financial plan
33
Q

What is in the executive summary!

A

Should highlight the objectives and how you will get there, the product you are selling, who your target market it etc

34
Q

What is in a marketing plan?

A 
What market you are in
Who is your competition
Who your target market is
Swot analysis
How the business will advertise
35
Q

Mission statement

A

A statement that reflects a business reason for being the way it will be managed

What market they are targeting
A reference to the type of targets
Important values of a business

36
Q

What are some different types of intellectual property?

A

Patent- makes the selling of device substance or Method yours

Trademark- numbers letters logo shape

Design- features and the way it looks

Copy right- art, songs and literature

37
Q

Define innovation?

Define intellectual property?

A

Introduction of new process and methods

The property of mind or intellect, can be an inventions, rademark or original design!

38
Q

How to come up with a good idea?

A

Family and friends
Personal inspiration
Research
Looking overseas

39
Q

Factors to consider when selecting a location!

A 
Personal factors- proximity if you love it etc
Area profile- industry market
Demographics- population the incomes
Complementary business- 
Zoning regulations
Accessibility- easy access
40
Q

Why people want to start a small business?

A

To be independent
To become wealthy
Fill a gap in the market

41
Q

Skills needed for business success!

A 
Communications skills
Orgainisational skills
Marketing skills
Promoting skills
Financial skills
Negotiation skills
Technical skills
42
Q

Qualities needed for business success!

A 
Innovative
Take risks
Think outside the square
Creative
Confidence
43
Q

What are two ways a business can fail?

A

Insolvency: business closes itself down due to it not being able to meet its financial commitments

Bankruptcy:when a business closes its doors as it cannot pay its debt!

44
Q

Why do businesses fail?

A

A lack of manager experience

Must be able to evaluate the financial performance and performance of the business!

45
Q

What are the three types of planning?

A

Strategical- 2-5 years

Operational- day to day, weekly and monthly adds up to a year

Tactic-1-2 years

Business Vce (14 decks)

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