Unit 1

Question 1

List 5 of the 11 National employment standards

Answer 1

One of the following:
- Maximum weekly Hours
- Requests for flexible working hours
- Offers and requests from casual to permanent
- Parental leave
- Annual leave
- Carer’s leave
- Long service leave
- Public holidays
- Notice of termination and redundancy pay
- Fair work statement

Question 2

What are the 3 levels of management in a Business?

Answer 2

• Top
• Middle
• Frontline

Question 3

What are the Features of an organizational chart?

Answer 3

• Chain of command
• span of control
• delegation

Question 4

List and describe the 4 types of organizational structures

Answer 4

• Functional, where staff are sorted by what they work in, or the function of their department. i.e. A team in Marketing, one in sales, one in HR,
• Product, where staff are sorted by different branches of products or service the business is marketing. i.e. Apple team on iPhones, one team on Macs
• Divisional, Where staff are split up based on geography or location, such as Asian division, European division.
• Team where staff a split into separate working groups, which can be tasked to complete projects

Question 5

Describe the 4 types of pricing

Answer 5

• Skim where a company enters the market at a high price point and gradually decreases the price as it advances through time and competition increases
• Penetration where a company comes into the market with a low price point, to either match the markets current value or scare competition, gaining immediate market share
• Psychological where a business prices in accordance to behaviors and psychology of customers, for example if customers thought the product is a necessity and should be cheap they will price it at a lower price point
• Premium where a product will price at a higher than usual price point in regards to other similar products to distinguish themselves as a higher quality of product.

Question 6

List the 4 features of Product in the 4P’s

Answer 6

-Positioning
-Features
-Branding
-Packaging

Question 7

Explain 3 ways a business could increase their physical presence

Answer 7

1. Staff Uniform, by creating a staff uniform or creating a more appealing staff uniform it increases customer satisfaction as it creates the appearance of community and belonging in the workplace
2. Signage is a graphic display used to convey a message to certain audience, and if done effectively it provides your customers and potential customers with subtle, but important, communication cues, increases brand awareness, and in the end, it can help you convert a sale.
3. Webpage can increase sales and promote awareness as it reaches out to a wider audience. Establishes presence on a new platform, allows customer to shop in comfort and hits new customers that might previously would not have access to the business.

Question 8

Explain the purpose of a CRM System

Answer 8

A CRM or Customer Relationship Management system is tool that collects and manages information and interactions your business has had with customers, sales leads, suppliers or other businesses. A CRM system can help you track the success of the marketing actions of the business and help identify potential/future customers. Also Allows for an Easy method to maintain relationships with customers.

Question 9

Outline the 2 methods of raising public image and Explain why they are effective

Answer 9

1. Corporate Sponsorships is a tactic where a business provides financial contributions to help fund an event, institution or other projects. For their help the business ears a public association with the program and is able to connect with the programs audience. This can also be applied to sponsoring a person. The sponsor by doing this gains publicity, market reach and good positioning towards audiences
2. Donations are one-off amounts or ongoing donations such percentages of sales going to an event/charity or other organization. They help increase good public image as it portrays the business as charitable and considerate

Question 10

Describe and name the main components of the 4 Motivational Theories

Answer 10

• Adam’s equity theory:
• Input: - Output:
• effort - salary
• skills - bonus
• experience - recognition
• Employee must feel like the outputs matches their inputs
• Maslow’s Hierarchy of needs:
• Self-actualization
• Esteem
• Love and Belonging
• Safety Needs
• Physiological (Physical) Needs
• Herzberg’s Motivation/hygiene theory
• Motivation: - Hygiene:
• Achievement - Wages
• Recognition - Working conditions
• Responsibility - Rules of business
• Advancement - Job security
• Promotion - Quality of supervision
  - Policies of business
• Vrooms expectancy theory
  Expectancy –> Instrumentality –> Valence
  more effort = more performance
  more performance = more reward
  value placed on the reward from performance

Question 11

Briefly describe the 6 elements of a Marketing Plan

Answer 11

1. Competitor analysis
2. Market position
3. Target market analysis
4. Goals
5. Marketing strategy
6. Marketing mix (4P’s)

Question 12

Define the 5 types of companies along with their type of liability. (10 marks)

Answer 12

• A sole trader is a business ran and owned by an individual, the owner is personally viable
• A partnership is defined as two or more people going to a business together with the aim to make profit (2-20 owners), they have unlimited liability (can be sued for everything)
• A separate legal entity, it has proprietary and limited in its name. It is classified as having less than $25 million in assets, <100 employees. They have limited liability, where the liability of share holders are limited to any un-paid shares
• A not for profit organisation is an organisation operating for profit or gain for its individual members. Any profit goes back into the operation. They have limited liability
• A franchise is a business where the ‘franchisor’ allows an independent business owner ‘franchisee’ to use its branding and business model, as well as other intellectual property. It can be set up as the other types of companies, and liability can be discussed with franchisee

Question 13

Outline 3 advantages and disadvantages of a sole trader (3 marks)

Answer 13

*Advantages include
o Easy to lodge tax
o Affordable
o Easy to set up
o Owner has full control
o Owner keeps all profit

*Disadvantages include
o Unlimited liability
o No-one to share workload
o Have to make all the decisions

Question 14

Outline 3 advantages and disadvantages of a Partnership (3 marks)

Answer 14

*Advantages include
o Easy to establish
o Work can be shared
o Partners can bring in money and skills
o Holidays (Paid)

*Disadvantages
o Unlimited liability
o Can be disagreements between partners
o Rules have to be set
o Personal Income Tax

Question 15

Outline 3 advantages and disadvantages of a Small Proprietary company (3 marks)

Answer 15

*Advantages include
o Less risk
o Limited Liability
o Flat tax rate
o Easy to grow

*Disadvantages include
o More regulations
o A lot of paperwork
o Expensive to set up
o Profit shared across multiple owners
o Must operate within the Corporations Act

Question 16

Define the different levels of management within a business (3 marks)

Answer 16

• Top, this includes the owner and board of directors
• Middle, this includes managers
• Frontline, frontline workers and cashiers

Question 17

Outline advantages and disadvantages of a franchisee and franchisor (3 marks)

Answer 17

*Franchisor
o Adv: Initial payment, quicker expansion and lower responsibility
o Dis: Larger chain of command and span of control, Ongoing payments, Less control on lower operations

*Franchisee
o Adv: Well known name, No executive decisions
o Dis: Stuck with business model and must operate by franchisor’s procedures

Question 18

Briefly Describe the 4 stages of the employment cycle

Answer 18

Acquisition Stage: In this stage you are acquiring people. You predict
Development Stage: In this stage you start developing future staff. You induct new employees into the workplace and then provide training
Maintenance Stage: In this stage you maintain the employees. You must provide incentives to employees to keep them in the organization/business
Separation: In this stage the employees leave, resign, retire or the employer terminates them.

Question 19

Explain the different types of tax and which business model has which tax (6 marks)

Answer 19

• Corporate tax: Is a set tax rate on the profits of a corporation (somewhere around 27.5%)
• Personal tax: Is a tax rate that changes depending on your income per year
• Personal tax include Sole trader and Partnership
• Corporate tax include Franchise, small proprietary and not-for profit

Question 20

Define an Organisational Chart, and outline 3 different organisational features (4 marks)

Answer 20

*An organisation chart is a visual representation of who is in charge of who, along with responsibilities in an organisation
o Chain of command: Levels of authority in an organisation (line of communication) , it determines the length of an org chart
o Span of control: The amount of employees directly managed by a manager, it determines how wide or narrow an org chart is
o Delegation: The way tasks are handed down

Question 21

Outline and expand upon the 11 National Employment Standards (11 marks)

Answer 21

• Maximum weekly hours - An employer must not request/require an employee to work more than their assigned work hours unless reasonable such as required by their level of responsibility
• Request for flexible working arrangements - An employee who has worked with the same employer for at least 12 months can request to have changes in hours, patterns or locations of work
• Offers and requests to convert from casual employment to permanent employment - Employees who have worked with their employer for 12 months need to be offered the option to convert to full-time or part-time employment
• Parental leave - Employees are entitled to unpaid leave when an employee is born or adopted
• Annual leave - Is the amount of paid leave an employee is entitled to while having time off work (usually 28 days)
• Personal/cares leave - An employee is entitled to take time off to help them deal with personal illness, caring responsibilities and family emergencies. This can be paid and unpaid
• Community service leave - Employees can take paid and unpaid leave if they are engaging in activities within the community
• Long service leave - After an employee has been working for a long amount of time under the same employer, they are entitled to long amounts of leave
• Public holidays - An employee is entitled to public holidays, whether this includes taking the day off or getting paid more
• Notice of termination - To end an employee’s employment, an employer has to give them written notice of their last day of employment
• Fair Work information Statement - Is a statement that needs to be provided to new employees with information about their conditions of employment

Question 22

Explain the 3 features/sub-stages in the Acquisition stage of the Employment Cycle

Answer 22

Staffing needs: Evaluate if there are enough skills for the work required. You must predict the business’ needs and attract employees
Recruitment: Process of finding candidates and stimulating them to apply for it
Selection: Picking the best candidate and rejecting those unfit for the job

Question 23

Explain the 2 features/sub-stages in the Development stage of the Employment Cycle

Answer 23

Induction: Provide the relevant information and tours of the business as wells as the Fair Work Statement
Training: Provide relevant training needed for the work

Question 24

Explain the 4 features/sub-stages in the Maintenance stage of the Employment Cycle

Answer 24

Contract: Work contact to do with pay, hours, job description
Agreement: Formal agreement to do the work with acceptable quality
Performance Management: Provide check-ups to ensure that the output level is meeting the organisation’s goals
Incentives: Offering incentives to stay

Question 25

Explain the 4 features/sub-stages in the Separation stage of the Employment Cycle

Answer 25

Retirement: Employee leaves work force
Resignation: Employee leaves for another job
Retrenchment: The employee is let go for capacity to meet job or surplus of labour
Dismissal: Employer terminates employee

Question 26

Expand upon the 11 National Employment Standards

Answer 26

Maximum weekly hours:
An employer must not request/require an employee to work more than their assigned work hours unless reasonable such as required by their level of responsibility
Request for flexible working arrangements:
An employee who has worked with the same employer for at least 12 months can request to have changes in hours, patterns or locations of work
Offers and requests to convert from casual employment to permanent employment:
Employees who have worked with their employer for 12 months need to be offered the option to convert to full-time or part-time employment
Parental leave:
Employees are entitled to unpaid leave when an employee is born or adopted
Annual leave:
Is the amount of paid leave an employee is entitled to while having time off work (usually 28
Personal/cares leave:
An employee is entitled to take time off to help them deal with personal illness, caring responsibilities and family emergencies. This can be paid and unpaid
Community service leave:
Employees can take paid and unpaid leave if they are engaging in activities within the community
Long service leave:
After an employee has been working for a long amount of time under the same employer, they are entitled to long amounts of leave
Public holidays:
An employee is entitled to public holidays, whether this includes taking the day off or getting paid more
Notice of termination:
To end an employee’s employment, an employer has to give them written notice of their last day of employment
Fair Work information Statement:
Is a statement that needs to be provided to new employees with information about their conditions of employment

Question 27

Outline the difference between casual employment and part-time employment

Answer 27

• Casual employment: No specific shift, no entitlements
• Part-time: Slightly less money, guaranteed hours, holiday, sick leave

Question 28

In detail, explain the NES standards covering minimum wage

Answer 28

• Under the Fair Work Act 2009, an employee cannot get paid below a minimum wage that is reviewed every July 1st. There is a separate junior and adult wages. On top of that, most employees are covered by a modern award which sets the minimum terms and conditions above the minimum wage. As-well as modern awards, there are enterprise agreements that set a higher level of minimum wage. As a consequence of these minimum wages, it is illegal to pay an employee below the specified amount.

Question 29

Outline the NES standards covering unfair dismissals

Answer 29

• An unfair dismissal is where an employer terminates an employee’s contract without a fair reason to do so. It is unlawful to terminate an employee based on the grounds of discrimination. It also states that an employee has to be given warnings and time to act upon those warnings. As well as given a detailed explanation on what they are doing wrong for any discrimination grounds including: Sex, colour, social origin, pregnancy, mental ability

Question 30

Outline PEST

Answer 30

• Political and legal
• Economic
• Socio-cultural
• Technological

Question 31

Outline inflation

Answer 31

Is the rise or increase in prices. It is measured with CPI (Consumer price index), which is the average price of a basket of set goods in a year

Question 32

Outline interest rates

Answer 32

Is the cost of borrowing money. When you borrow money, you pay the money back + interest

Question 33

Outline skilled and unskilled labour

Answer 33

• Skilled labour refers to work that requires a certain amount of training or skills
• Un-skilled labour refers to work that doesn’t require a certain set of skills or formal education

Question 34

Outline unemployment rates

Answer 34

• Unemployment rates is the current amount of workers in the work-force that are searching for a job, but can’t get one

Question 35

How does the government and banks combat high and low inflation

Answer 35

• When inflation is high, the government raises interest rates as to stop personal spending as they have less money available to them.
• When inflation is low, the government lowers interest rates to increase personal spending and money going into the economy

Question 36

Why do business’ need marketing goals?

Answer 36

To help minimise risk and maximise effectiveness, a business needs to identify specific goals it wants to achieve as a result of the marketing campaign.