VCE Business Management Unit 1 and 2 warmup questions Flashcards
Define Entrepreneurship
The act of starting and operating a new business in response to opportunities, assuming all the risk in the hope of making a profit.
define social corporate responsibility
Corporate social responsibility (CSR) is where a business goes above and beyond their legal obligations to demonstrate an ongoing commitment to the economy, environment and community.
What is a business? (1 mark)
Any activity conducted by an individual or individuals to produce and sell goods and services that satisfy the needs of society, as well as making profit.
define bricks and motors business type
Brick and mortar refers to physical, traditional retail businesses that customers can visit to view and purchase products in person.Brick and mortar stores can be found in shopping malls, town centres, city streets, or the outskirts of small communities.
distinguish between internal and external environments of a blueness?
The difference between them is the level of control the business has over them. A
business has total control over the factors in its internal environment, however, it has limited (operating)
to no (macro) control over the factors in the external environments.
what is a sole trader of a business
A sole trader (proprietor) business has one person who owns and runs the business. The owner may employ other people to work in the business, but the owner or sole trader is the person who provides all the finance, makes all the decisions and takes all the responsibility for the operation of the business.
Define the term research and development (2 marks)
Research and development (R&D) is the set of activities undertaken to improve existing products, create new products and improve production processes.
What is crowdfunding?
Crowdfunding involves raising small amounts of money from a large number of individuals to finance a new business venture.
Describe one corporate social responsibility consideration a restaurant business may incorporate into
its planning. (4 marks)
One consideration is whether the business sources its food supplies from Australian
producers, especially local ones. It considered by many to be socially responsible to purchase from local
suppliers rather than foreign suppliers because it supports both the local and Australian economy,
generating more jobs and income than if supplies were sourced offshore.
Describe two characteristics of a sole trader (2 marks)
A sole trader has one owner who makes all the decisions, and limited liability which
means the one owner is responsible for paying all debts of the business.
Describe two characteristics of a private limited company? (2 marks)
A private limited company has one to twenty shareholders who are all part owners and receive dividends
from the profits. Also, it has limited liability so the shareholders aren’t responsible for paying back the
debts of the company from their personal assets
Social enterprise ( 2 marks)
A social enterprise is a business that exists primarily to fulfil a social or environmental purpose, while also aiming to make a profit. Profits are usually reinvested to support the business’s mission rather than being distributed to owners. For example, Thankyou sells water and hygiene products and uses the profits to fund clean water and sanitation projects in developing countries.
Describe the type of business structure Dexter should establish for ‘Games ‘n’ Stuff’. (2 marks)
Games ‘n’ Stuff should be set up as a partnership. Dexter is establishing a new business and likely wants to keep establishment costs low. In addition to this, he will be able to include Harry Moriarty as a partner who has skills in the financial elements of the business, expanding their available skill set and likelihood of success.
Describe one of the key elements of the operations system at Sammahs food
Inputs refer to the resources used to make a business’ goods or services, such as raw materials, equipment or labour. Some inputs at Samaah’s Foodz include the ingredients used to make the savoury foods that are frozen, as well as the freezers used to freeze and store the product. Additionally, the employees employed to stack the frozen savoury food items are an input.
Distinguish between an incorporated business and unincorporated business? (2 marks)
An unincorporated business has no separate legal existence from its owner(s) and will be either a sole trader or partnership. An incorporated business has its own separate legal existence, so that regardless of what happens to individual shareholders of the company, the business can continue to operate.
Describe the buieness model used by Games N stuff’ (3 marks)
Games ‘n’ Stuff is definitely an Online business. An online business is a model that produces digital content that can only be consumed online from a computer or other device. In the case of ‘Games ‘n’ Stuff’, they produce videos, articles and other online services relating to games and pop culture that can only be consumed via the internet.
Identify the type of business ‘who gives a crap’ is and describe the features of this type of business? ( 2 marks)
Who gives a crap involves a social enterprise. While the business objective of ‘who gives a crap’ is to generate profit, the significant portion of the profit is directed to benefit society. In this case, ‘who gives a crap’ provides 50 percent of their profit towards building toilets for those in need.
Define and provide an example of a private limited company? (2 marks)
A private limited company involves a business that is incorporated, allowing private limited companies to have their own legal identity allowing to own assets in their own right. Ownership within a private limited company is divided into shares with one owning a piece considered shareholders of a company.
Define lean management (2 marks)
Lean management is an approach that involves identifying and eliminating waste in business operations to improve efficiency, quality, and customer value.
