SAC Revision 2 Flashcards
Distinguish between occupation and generic skills. Provide two examples for each.
Occupation- skills directly related to your business e.g. Cooking, building skills
Generic- skills that generally relate to all small businesses e.g. Organisation, courtesy
Identify and explain three motivations for people to set up a small business
Independence- can make your own decisions
Profit- gain an income
Meet market needs- you choose what you supply
Explain the purpose of market research
Determines whether or not a businesses goods and services are selling internally and externally
Identify and explain any two market research methods
Conducting research through customer surveys
Trail and error
Define Sole Trader and provide advantages and disadvantages of this type of ownership
A person who is the exclusive owner of a business
Advantages
- keeps all the profit
- inexpensive to setup
Disadvantages
- lacking professional support
- Wait for business to take off
Define the term partnership and provide two advantages and disadvantages of this type of ownership.
A group of between two and twenty people can all be involved in the ownership and running of the business.
Advantages
- inexpensive to set up
- Partners belong to same profession
Disadvantages
- cannot sell shares
- can be conflict
Define the term franchise and provide two advantages and disadvantages of this type of ownership
Contractual arrangement between two parties.
Advantages
- already set up
- less chance of failure than a small business
Disadvantages
- can’t personalise business
- less independent
Two considerations when starting a business from scratch
Doing it at your own risk
Can choose own work hours
Two considerations when buying into an existing business
Zoning laws
Population and business trends in the area
Identify and explain the four roles of management
Planning
Organising
Leading
Controlling
Three levels of planning
Strategic Planning-
Long term planning to define organisations goals and objectives
Tactical Planning-
Assist in implementing the organisations strategic plan
Operational Planning-
Day to day operations by lower level managers and supervisor
Identify and explain a planning procedure that could be used in any business
The strategy to make a of a business. SWOT Strengths Weaknesses Opportunities Threats
Identify three areas of support a potential business owner could get from an accountant and a solicitor
Accountant-
GM of the business
Taxation documents GST and Tax
Advice on financial matters
Solicitor-
Legal liability
Preparation of contracts
Taxation
