Lesson 7/8/9 - Booklet 1 Revision

Question 1

Name any two features of a Sole Trader

Answer 1

Owned and operated by a single person
May have employees

Question 2

Identify one important feature of a Private company.

Answer 2

Business name is followed by Pty Ltd
Separate legal entity
1-50 shareholders

Question 3

Name one disadvantage/con of a Public company.

Answer 3

Cost of set up and gov regulation = highest
Greater public scrutiny of financial performance
Profits taxed twice

Question 4

Choose the correct answer:
An incorporated business that can trade shares on the ASX.
a) Sole Trader
b) Partnership
c) Private Company
d) Public Company

Answer 4

d) Public company

Question 5

Outline the four business opportunities

Answer 5

Innovation
Entrepreneurship
Market Opportunities
Changing Customer Needs

Question 6

Define the term “Entrepreneurship”

Answer 6

Entrepreneurshiprefers to the concept of developing and managing a business venture to gain profit by taking several risks

Question 7

List the 3 business environments.

Answer 7

1. Internal Environment
2. Operating Environment
3. Macro Environment

Question 8

True or False:
In the Macro Environment, a business owner has some control?

Answer 8

False: No Control

Question 9

True or False:
Sole Proprietor has Limited Liability?

Answer 9

False: Unlimited Liability

Question 10

True or False:
Partnership and Private Company have Unlimited Liability?

Answer 10

False:
Partnership has unlimited and private Company has limited

Question 11

True or False:
Private Companies have 1-50 shareholder

Answer 11

True

Question 12

Which is NOT a business objective?
a) Make a profit
b) Increase market share
c)Meet shareholder
expectations
d) Improving Advertising strategies

Answer 12

d) Improving advertising strategies

Question 13

List any 3 KPI’s.

Answer 13

Percentage of market share
Net profit figures
Number of sales
Level of wastage
Rate of productivity growth