Unit 1 chapter 1

Question 1

What is a business

Answer 1

Any activity conducted by an individual or individual(s) to produce or sell goods and services with the main objective to make a profit.

Question 2

Public vs Private Sector

Answer 2

Public sector are business that are operated by the government.
Private sectors are business are owned by individuals or companies.

Question 3

The three industry sectors

Answer 3

Primary - business involved with extracting raw resources from nature.
Secondary- businesses using the raw materials to manufactor and assemble products.
Tertiary- involves the providig services, including retail, wholesale and transport

Question 4

Industry division

Answer 4

Business can be also be categorised by the individual industries they operate in.

Question 5

Business opportunity, how they are sparked

Answer 5

a set of circumstances that might potentially lead to starting a successful business.
Some business opportunities are sparked by:
innovation, Entrepreneurship, market opportunities, changing customer needs, research and development, technological development and global markets

Question 6

sole trader

Answer 6

one owner

Question 7

shareholders

Answer 7

owners of a company

Question 8

revenue

Answer 8

money recieved from selling goods and services

Question 9

assets

Answer 9

items of value a business owns

Question 10

market share

Answer 10

a proportion of sales in a given market held by a business

Question 11

motivations for starting a business

Answer 11

desire for independence, can choose when, who and where you work.
Profit: desire to make money
Market need: identify lack of available goods and services .
Social: focus on community or environmental need, opportunities for unemployed, disadvantaged people.

Question 12

Business goals

Answer 12

provides businesses with a purpose, describes what a business expects to achieve, allows owners to develop ideas for a business

Question 13

vision statement

Answer 13

describes where a business wants to be in the future

Question 14

mission statement

Answer 14

states how a business will achieve it’s vision

Question 15

Smart goals

Answer 15

Specific, Measurable, Attainable, Relevant, Timebound

Question 16

The three types of Goals

Answer 16

Financial: to make profit, increase sales, increase market share, expand the business ect.
Social: community service, social justice
Personal: Generally reflect the goals of the business, improve products, financial security

Question 17

Some characteristics of successful business managers

Answer 17

take risks, innovative, motivated, keen to learn, initiative.
and being able to cope with stress and pressure

Question 18

successful entrepreneurs do:

Answer 18

wiling to seize opportunities, prepared to take risks. innovative, enterprise, shared vision

Question 19

business concept

Answer 19

-describes the core activities of the business and specific features and values of the goods or services it provides

Question 20

How do business concepts develop

Answer 20

when market research and feasibility studies are conducted.

Question 21

Protecting a business idea

Answer 21

Intellectual property: potential business owner’s idea or concept, for example a new creation, brand or design that have a lot of value.

Question 22

trademark

Answer 22

exclusive rights to use a logo sound or picture

Question 23

patent

Answer 23

exclusive rights to a process method or a device

Question 24

copyright

Answer 24

protection of original music, art and films

Question 25

design rights

Answer 25

to commercially use or sell a design

Question 26

domain name

Answer 26

a unique address on the internet

Question 27

market research

Answer 27

gatherinf and analysing data about a specific market

Question 28

market conditions

Answer 28

determines whether or not a product already exits

Question 29

feasibility study

Answer 29

assessment of the practically and potential for success of a business idea. determines whether a business is worth pursing or not

Question 30

what to do for feasibility study

Answer 30

possible demand for the product, potential customers, their location. operations, legal requirments, financial considerations

Question 31

economy

Answer 31

a system set up to determine what goods and services to produce, how to produce them and who they will be distributed to.

Question 32

economic growth

Answer 32

when the real value of goods and services increases over a period of time

Question 33

Gdp

Answer 33

gross domestic prodcut. the monetary vakue of all goods and services produced in aus over time

Question 34

exports

Answer 34

sale of goods and services in other countries. aus exports natural resources and minerals

Question 35

balance of payments

Answer 35

record of a country’s trade and financial transactions with the rest of the world

Question 36

research and development

Answer 36

to improv knowledge and develop new products and processes and improve products and processes

Question 37

coporate social responsibility

Answer 37

ensuring a businesses’ employees are conscious of there social well being