Previously made questions

Question 1

John wants to develop a software “app” for mobile devices that will allow users to know
where there is free parking in the local area. John is investing $70 000 to develop this
“app” that he will sell through his business website.
What would John best be described as?

Answer 1

Entrepreneur

Question 2

What feature of management involves delegating tasks to employees?

Answer 2

Organising

Question 3

Where are shared in public companies traded?

Answer 3

The Australian Securities Exchange

Question 4

Olivia owns a spray-tanning salon and employs 12 people.
What size best describes Olivia’s business?

Answer 4

Small

Question 5

Lisa and John own a successful landscaping business and have decided to expand
operations. They will open up a branch of the business in Queensland as the number of
retired people moving there has increased significantly in the last 5 years.
Which of the following factors has influenced their decision?

Answer 5

Demographic

Question 6

Which of the following would best illustrate the line of authority established within a
business?

Answer 6

Chain of command

Question 7

In a recent SWOT analysis conducted by a manager it was identified that a business uses
outdated technology.

Answer 7

Weakness

Question 8

What is the first step in developing a business plan?

Answer 8

Completing a situational analysis

Question 9

Peter uses a classical approach to management of his business.
Which management style tends to be associated with this approach?

Answer 9

Autocratic

Question 10

Which of the following is an internal influence that may impact on the operations of a
business?

Answer 10

Increase in use of e-commerce

Question 11

Which of the following provides managers with statistical and financial information
allowing them to monitor total sales and the productivity of sales representatives?

Answer 11

Sales report

Question 12

Telecommunication companies are found in which industry sector?

Answer 12

Quaternary

Question 13

Natalia’s Hair Salon has $1 IO 000 in liabilities and $150 000 in assets.
What is the value of owner’s equity for Natalia’s Hair Salon?

Answer 13

$40 000

Question 14

Which stage of the human resource cycle involves identifying staffing needs and seeking
applicants?v

Answer 14

Recruitment

Question 15

Outline ONE advantage of establishing a new business, compared to purchasing an existing one.

Answer 15

• The owner can set up the business as they want
• Owners can determine the pace of growth and change
• Does not have to pay for goodwill
• Cheaper options as the owner can start on a smaller scale.

Question 16

Examine how a SWOT analysis can be used in the planning process.

Answer 16

It is an important source of planning. By examining a business’s strengths and weaknesses it enables the manager to understand the internal environment whilst an examination of the opportunities and threats allows the manager to understand the external environment.
This information can help a business enhance or modify its goals or objectives.

Question 17

Identify management skills that may effectively manage change.

Answer 17

Interpersonal, communication, vision, problem solving, decision making, flexibility, adaptability to change

Question 18

Discuss factors that may cause resistance to change

Answer 18

Management, Fear of job loss, Disruption to routine, Time , Fear of the unknown , Inertia ,Cost

Question 19

Strategies used to manage change effectively

Answer 19

Creating a culture of change
Use change agents
Implement positive leadership
Hire management consultants who are aware of best practices
Open to communication
Develop team spirit
Offer support to reduce fear and anxiety
Build trust among employees
Specify the nature of the change
Allow employees to participate in the change process
Support change with new learning

Question 20

Outline ONE advantage and ONE disadvantage of establishing a company.

Answer 20

PROS: Easier to attract finance, limited liability, can transfer ownership easily, perpetual succession, growth potential.

CONS: Cost of formation . Must publish yearly annual report of audited accounts. Can be too large causing inefficiencies.