unit 1 chapter 2

Question 1

what should a new business plan include

Answer 1

a clear direction of the business

goals and how they will be achieved

Question 2

business enviroment:

Answer 2

surrounding conditions in which the business operates

Question 3

stakeholders:

Answer 3

groups or individuals with an interest in, or affected by the activities of a business

Question 4

internal environment

micro enviroment

Answer 4

things over the business has control over, for example company polices, culture, staff and management style

Question 5

external enviroment

Answer 5

things the business has little control over for example government polices, taxation and superannuation levels , competitors and economic conditions

Question 6

operating enviroment

Answer 6

stakeholders external to the business that have a direct impact on individual businesses
for example
customers
competitors
suppliers
special interest groups

Question 7

macro enviroment

Answer 7

external changed can mean owners have to make changes to the business plan
for example
laws and regulations changed by governments
economic conditions
global facts
technology
corporate social responsibilities

Question 8

Legislation and government regulations

Answer 8

federal, state and local government laws must be obeyed by business owners
for example
taxation laws, health and safety, anti discrimination

Question 9

new businesses must

Answer 9

• register with Asic
• obtain an ABN
• contact the tax office for a tax file number

Question 10

Location regulations

Answer 10

laws exist relating to where buildings can be located, their height, size and parking

Question 11

health regulations

Answer 11

food act, laws around storage, serving and handling of food

health inspectors conduct regular checks and can force businesses to close if not compliant

Question 12

employment regulations

Answer 12

businesses must comply with employment regulations and laws

• when recruiting staff
• equal opportunities act
• occupational health and safety act

Question 13

taxations laws

Answer 13

businesses must submit a business activity statement (BAS) to the taxation office monthly or quarterly
-pay roll tax

Question 14

trade practices and consumer protection laws

Answer 14

competition and consumer act, protects goods and services so that they aren’t faulty

Question 15

environmental protection

Answer 15

laws prevent pollution and environmental damage to the air and water and land

Question 16

attitudes and beliefs

Answer 16

business owners need to consider the communities values, beliefs and trends

Question 17

values and beliefs

Answer 17

-they influence the way people behave for example what they eat, do wear, and how they live

Question 18

trends:

Answer 18

reflecting trends in society is important for example ageing population and diverse workplace

Question 19

economic conditions

Answer 19

-the influences that relate to economic activity in a region

Question 20

name the four phases of the business cycle

Answer 20

expansion= increasing consumer spending, sales rising
Contraction = decrease consumer spreading and sales falling
Peak= operation at full capacity, sales at highest level
Trough = operation at lowest level
sales at lowest level

Question 21

Interest Rates

Answer 21

the price charged or paid for the use of money

expressed as a percentage of the total amount

Question 22

Tax rates

Answer 22

a percentage of a business’s income

Question 23

income tax

Answer 23

varies with respective income or profits

the more you earn the more pay you pay

Question 24

business and consumer confidence levels

Answer 24

when people feel confident about the economy, they will spend more money

Question 25

Technological issues

Answer 25

• the growing use of tools, techniques systems to solve problems or an operations purpose
• improved technology can provide improved effciency and productivity, new products and improve the quality of goods and services

Question 26

developments in technology

Answer 26

improve productivity
faster global communication
-loss of jobs, products dont last as long so more money is needed for research and development

Question 27

globalisation

Answer 27

the effect of high-tech communications lower transport costs and the unrestricted trade and flow of money turning the world into one large market

issues:
overseas competitors

Question 28

offshore labor

Answer 28

moving some business processes or services to another country due to lower costs.

• loss of Australian jobs
• exploitation of foreign workers

Question 29

exchange rates

Answer 29

the price of one currency expressed in terms of another currency for example how much one currency is to be given up to buy a given amount of different currency.

Question 30

protection of intellectual property

Answer 30

from overseas competitors can be achieved through:
patents- a legal exclusive right for any device substance method or process.
trademarks: a right over a letter word phase sound
copyright: a free automatic protection of original music art