exam qs Flashcards
Provide definition for the term suppliers and the term special interest groups. Explain how they are different from one another. (4 marks)
Suppliers are those who give a business the resources it needs to make its products. Special interest groups are groups with a specific purpose that influences how a business operates. They are different from one another as special interest groups can influence how a business operates, while suppliers can influence the effectiveness of the business making products.
List the positive and negatives of being a sole trader. (4 marks)
The positives are that you keep all the profits, and you have all the control over the business. The negatives are that you need to carry all the losses, and you have personal liability for any debts.
Define the structure of a social enterprise business. (3 marks)
A social enterprise business is a business which produces goods and services; however, its primary objective is to fulfil a social need. Some of the positives are that it meets social needs and opens up new markets. Some of the negatives are that it can be difficult obtaining capital, and there are significant operating costs.
What is a business plan and why is it a good idea to create one? (3 marks)
A business plan is a written statement of the business’ goals and plans for the future. It can contain financial information, general information, and advertising/marketing information. It is a good idea to make one to give direction to the business, and show the progress made.
What factors make up the operating environment? (4 marks)
Suppliers, special interest groups, competitors, and customers.
Define in detail three different types of business models. (3 marks)
Brick and mortar models are physical stores. Online models exist solely online through websites. Franchises are when someone buys the rights to an existing business.
How is the internal environment different to the external environment? (2 marks)
The internal environment consists of factors which the business owner has complete control over, however the operating environment consists of factors which the business owner has little to no control over.
Oskar has decided to open a gym. How can he ensure that he treats his employees in a socially responsible manner? (2 marks)
He needs to ensure that he treats his employees beyond what is legally required. This can involve being pro union, and providing benefits to staff, such as healthcare related benefits.
Jesse has opened a new business, but he is struggling. What support services are available to him? (3 marks)
Some support services available are government programs, lawyers, and various business associations such as the Australian Business Chamber, which is involved in trade.
Phoenix has given up trying to become a lawyer and started running a business selling cakes and desserts. Identify the three types of resources her business will use, providing a specific example of each. (3 marks)
Her business will use labour, capital, and natural resources. An example of labour resources are the employees of the business. An example of capital resources is a cash register. An example of natural resources is electricity.
Why do business owners need to set goals? (2 marks)
Business owners need to set goals as it gives the business direction for the future. These goals could be social or financial.
How are business managers and entrepreneurs different? (2 marks)
Business managers oversee the everyday operation of the business, which can involve manage projects and employees. However, entrepreneurs are not involved in the everyday operation, and instead work towards the overall vision for the business and its future.
How do entrepreneurs and business activity contribute to the economic and social wellbeing of a country? (6 marks)
They contribute the economic wellbeing of a country by providing employment opportunities, economic growth, and tax revenue for the government. They contribute to the social wellbeing of a country by providing a sense of purpose and belonging to employees, social connections to employees, and engaging in corporate social responsibility which benefit many aspects of a business.
What are the pros and cons of being socially responsible? (5 marks)
Some of the pros are it can attract customers, and therefore increase profit, and have greater employee retention. Some of the cons are that the costs may be passed to customers, and that not all businesses have the skills to effectively address social issues.
Globalisation has resulted in a single, global market. What are the benefits and potential problems of globalisation? (10 marks)
Globalisation is the idea that the world has become a single, integrated market, which creates new opportunities and threats. Some of the benefits are that businesses have access to larger customer markets, the opportunity to have new partners and suppliers, and there is the option to outsource or offshore aspects of the business, which can save costs. Some of the potential problems are that there is increased competition as there are more businesses in the same market. Also, ideas have increased potential to be stolen, and exchange rates can fluctuate. This can affect planning.
