Hass businesses yr9

Question 1

What is financial risk?

Answer 1

Chance of losing money or facing financial instability when investing or making financial decisions

Question 2

What are the ways that people manage financial risks?

Answer 2

Diversification (Spreading money across multiple investments), Insurance (to cover big financial losses), and Superannuation (A compulsory savings plan for retirement)

Question 3

What is diversification?

Answer 3

Spreading money across multiple different investments to reduce risk of a financial loss

Question 4

What is insurance?

Answer 4

A contract in which you pay premiums to a company or organisation in which in return, provide financial protection against potential financial losses or important assets

Question 5

What is Superannuation?

Answer 5

A compulsory retirement based savings management plan where money is regularly funded into from your income

Question 6

What is financial reward?

Answer 6

Money that you gain or profit from investing, saving, or work

Question 7

How do people increase financial reward?

Answer 7

Investing in shares/equities in the stock market. investing in properties, or investing in savings accounts in banks.

Question 8

What are shares/equities?

Answer 8

Units of ownership in a company representing a claim on its assets and earnings.

Question 9

What can change in units of equities?

Answer 9

The unit price can change overtime, depending on the performance of the company, in which you may or may not gain a profit from when selling units.

Question 10

What are bank savings?

Answer 10

Funds deposited in a kind of bank account that earn profitable interest overtime.

Question 11

What are scams?

Answer 11

Tricks used by criminals and offenders to deceive people and victims to obtain something they seek. Usually scammers seek and desire money or personal information

Question 12

How do you protect yourself from scams?

Answer 12

Be cautious (Don’t share personal information to unknown people), and verify before investing (Always check if something is real, verified, or information that is used by official websites and data)

Question 13

What is competitive advantage?

Answer 13

An attribute that allows a business to outperform against competitors, that can attract more customers, sell more products, or operate more efficiently.

Question 14

How do businesses gain a competitive advantage?

Answer 14

Innovation, Cost Leadership, Differentiation, and improved customer service

Question 15

What is Innovation?

Answer 15

The process of creating new ideas, products, services or methods to improve existing solutions.

Question 16

What is cost leadership?

Answer 16

Where a business aims to become a low-cost producer, either from manufacturing or selling products and services at a lower cost against competitors

Question 17

What is differentiation?

Answer 17

When a business makes its products or services more unique, different, or better in some way compared to its competitors.

Question 18

What is customer service in terms of competitive advantage?

Answer 18

Having provided with excellent service and assistance to customers that is distinguished from its competitors. This can lead to customer attraction and loyalty

Question 19

Why is competitive advantage important?

Answer 19

To attract customers and increase profits, which can lead to high sales and increase profits to help grow the business and succeed

Question 20

What are MNC’s?

Answer 20

(Multinational Corporations) - Large companies that operate in multiple countries, managing production or delivering services in various global markets.

Question 21

why do businesses become multinational?

Answer 21

Access to new markets, lower production costs, and global brand recognition

Question 22

What are some impacts of MNC’s?

Answer 22

Economic growth to host countries (jobs, investing in local economies, and new technologies are brought), Cultural Influence (MNC’s can spread cultural products leading to greater cultural exchange between countries), Effect on small business due to competition, and (usually) negative environment treatment to host countries

Question 23

What are some challenges that and MNC might face?

Answer 23

Regulations implemented in host countries (E.g: laws, can cause complications), Cultural differences, and global social criticism

Question 24

What are interest rates?

Answer 24

They represent the cost of borrowing money or the return on money saved or invested.

Question 25

What are the types of interest rates?

Answer 25

Fixed interest rates, and variable interest rates

Question 26

What is fixed interest rate?

Answer 26

Interest rate that stays the same for the entire term of the loan or savings account

Question 27

What is variable interest rate?

Answer 27

Interest rate that can change over time, depending on the market or decisions of the bank

Question 28

What are savings accounts?

Answer 28

A bank account where people can deposit money to earn interest over time.

Question 29

What are loans?

Answer 29

Money borrowed from a bank or financial institution that must be repaid with interest over time.

Question 30

What are some types of loans?

Answer 30

Home loan, Personal loan, Business loan, etc

Question 31

What are deposits

Answer 31

Money placed into a bank account, either in savings, checking, or term deposit accounts

Question 32

What are the types of deposits?

Answer 32

Demand deposits (Funds that can be withdrawn at anytime), and Term deposits (A fixed-term investment where money is deposited for a period, usually at high interest rates)

Question 33

What is economic impact?

Answer 33

Changes in interest rates that can impact inflation, consumer spending, and overall economic growth.

Question 34

What are the two kinds of savings accounts?

Answer 34

Term deposits and Demand deposits

Question 35

Give 1 example of a kind of scam

Answer 35

romance, sudden money earning, fake business, etc