UNIT 3 – Area of Study 1: Business foundations.

Question 1

Types of Businesses

Question 2

Sole trader Describe features/characteristics

Answer 2

a business owned and operated by one person responsible for all aspects of the business. if business fails personal assets will be taken

Question 3

Sole trader Strengths & weaknesses

Answer 3

STRENGTHS
-owner has complet control
-less costly to operate & fewer gov regulation
- owner keeps all profits
-low cost of entry only need to set up a ASIC
WEAKNESSES
-owner dies no one else to run business
-owner responsible for all losses of a business
-banks are less likely to give loans to sole trader
-unlimited liability for all debts of the business

Question 4

Sole trader Example

Answer 4

Tradespeople: plumbers, electricians, or gardeners hairdress

Question 5

Partnership Describe features/characteristics

Answer 5

Sharing of profits and losses.
Mutual agency.
Unlimited liability.

Question 6

Partnership Strengths & weaknesses

Question 7

Partnership Example

Question 8

Private Limited Company Describe features/characteristics

Question 9

Private Limited Company Strengths & weaknesses

Question 10

Private Limited Company Example

Question 11

Public Listed Company Describe features/characteristics

Question 12

Public Listed Company Strengths & weaknesses

Question 13

Public Listed Company Example

Question 14

Social enterprises Describe features/characteristics

Question 15

Social enterprises Strengths & weaknesses

Question 16

Social enterprises Example

Question 17

Government business
enterprises Describe features/characteristics

Question 18

Government business
enterprises Strengths & weaknesses

Question 19

Government business
enterprises Example

Question 20

Business objectives

Question 21

To make a profit Explain

Question 22

To increase market share Explain

Question 23

To improve efficiency Explain

Question 24

To improve effectiveness Explain

Question 25

To fulfil a market need Explain with example

Question 26

To fulfil a social need Explain with example

Question 27

To meet shareholder expectations Explain

Question 28

Stakeholders of businesses

Question 29

Stakeholder Define

Question 30

Owners Describe

Question 31

Owners Explain interests

Question 32

Managers Describe

Question 33

Managers Explain interests

Question 34

Employees Describe

Question 35

Employees Explain interests

Question 36

Customers Describe

Question 37

Customers Explain interests

Question 38

Suppliers Describe
Explain interests

Question 39

Suppliers Describe
Explain interests

Question 40

General community Describe
Explain interests

Question 41

General community Describe
Explain interests

Question 42

Characteristics of stakeholders

Question 43

Examples of at least two potential conflicts between stakeholders