Mid-Year Exam

Question 1

Define innovation.

Answer 1

It is a key feature of entrepreneurship involving change, improvement and/or transformation of a product.

Question 2

Explain, using an example of a contemporary business case study, the concept of entrepreneurship.

Answer 2

Entrepreneurship is starting or operating a business in response to opportunities and taking risks to make a profit. Apple, founded by Steve Jobs in a garage, has innovated and introduced new products like the iPod and iPhone, revolutionizing the music player and smartphone industries.

Question 3

What do the SMART goals stand for?

Answer 3

Specific, Measurable, Achievable, Relevant, and Time-Bound

Question 4

Explain how changing customer needs can provide opportunities for a business idea.

Answer 4

By identifying changes in customer needs, businesses can develop new products or services that meet these needs more effectively than their competitors.

Question 5

Explain one strategy used by the federal government to foster a culture of innovation or entrepreneurship.

Answer 5

The Entrepreneurs’ Programme is an effective strategy used by the Australian federal government to foster a culture of innovation and entrepreneurship, providing businesses with resources, support, and funding to grow and succeed.

Question 6

Discuss the role of market research in achieving business success.

Answer 6

Market research is the process of identifying, gathering, and analysing information about a specific market to help businesses make informed decisions, minimize risks, and identify opportunities for growth and innovation. It can be time-consuming and expensive, especially for new small businesses.

Question 7

Explain two ways that businesses contribute to the economic well-being of a nation.

Answer 7

Employed Australians use their wages to buy goods and services, support businesses and create job opportunities.

Taxation revenue provides the government with additional revenue when goods and services are taxed.

Question 8

Explain businesses’ contribution to career and social well-being.

Answer 8

The social connections that people make at work may also affect their health, personal habits and general well-being. Resulting in personal happiness and self-fulfilment.

Question 9

Choose an entrepreneur you know to show what characteristics they had in order to have a successful business.

Answer 9

Bill Gates demonstrated his willingness to take risks, invest in new technologies, and pursue uncertain ventures to build a successful business. He also demonstrated innovation through creating new technologies, collaborating with partners, investing in research and development, and pursuing social innovation.

Question 10

Explain why an individual would create a concept development.

Answer 10

Iris the founder of Quick Flick identified a gap in the market, generated ideas, evaluated feasibility, and developed a detailed plan for bringing the product to market. This is a structured way to develop an idea, see if customers like it, and determine what customer market is willing to buy it.

Question 11

What local governments do to support innovation.

Answer 11

Local governments can create innovation hubs to foster innovation and entrepreneurship in the local community, providing resources such as mentorship, networking, and funding.

Question 12

Describe two factors of the macro environment in relation to business planning.

Answer 12

Economic conditions:
- The set of influences that relate to economic activity, including interest rates, wages, unemployment, exchange rates and inflation. Directly impact consumer behaviour, spending power, and resources. During periods of high inflation and interest rates, businesses may face challenges in managing costs, while during periods of economic growth, businesses may have more opportunities for expansion and investment.

Technological considerations:
In modern-day society, businesses need to adapt and incorporate technology into their operations to remain competitive. Technological factors include areas such as automation, digitalization, e-commerce, etc. When planning a business, it is important to consider how technology can impact processes, productivity, customer engagement, and market reach. For example, a business that fails to adopt relevant technological advancements may struggle to meet customer expectations or face obsolescence.

Question 13

Describe two factors of the operating environment in relation to business planning.

Answer 13

Customers
- Making businesses ensure their future viability and profitability
- Recognise and assess changes in consumer tastes so it can constantly satisfy consumers’ wants and needs

Competitors
- Influencing the decisions that business owners make. - - Changes in the actions of competitors are likely to result in an alteration to a business’s practices.
- For example, if a competitor introduces a wider range of products that consumers find appealing, the business must ensure that it adjusts its product range in order to maintain market share.

Question 14

Describe two factors of legal obligations in relation to business planning.

Answer 14

Register the business name with the Australian Securities and Investments Commission (ASIC) unless the owner is trading under their own name. To avoid fines.

Question 15

Define Corporate Social Responsibility.

Answer 15

Managing a business in such a way that the broader social welfare of the community, including its employees, customers, suppliers and the environment, is taken into consideration when making business decisions

Question 16

Distinguish between the external macro and operating environment.

Answer 16

• Both a part of the external environment

Marco: the broad conditions and trends in the economy and society within which a business operates.
(Business = no control)
- Corporate social responsibility
- Global issues
- Economic conditions
- Legal and government regulations
- Societal attitudes and behaviours
- Technological considerations

Operating: the specific outside stakeholders with whom the business interacts in conducting its business.
(Business = some control)
- Suppliers
- Customers
- Competitors
- Special Interest Groups

Question 17

Using a contemporary business explain how a business can be socially responsible.

Answer 17

McDonald’s initiatives focus on children’s well-being, education, and local community development. For example, the Ronald McDonald House Charities provide accommodations near hospitals for families with critically ill children.

Question 18

Describe two social attitudes that could affect the planning of a business.

Answer 18

Environmental consciousness - businesses must consider green initiatives, sustainable practices, and renewable energy sources to meet the demands of environmentally conscious consumers.

Ethical consumption - Businesses must focus on fair trade, responsible sourcing, and social responsibility to align with consumer values, enhance their brand reputation, and remain competitive in a socially conscious marketplace. This can be achieved through ethical audits, guidelines, and fair wages.

Question 19

Explain what an interest rate is and how it can affect business planning.

Answer 19

The price charged or paid for the use of money that has been deposited or borrowed.

High-interest rates reduce the likelihood of a business making a large profit, but falling interest rates can make business loans more affordable, allowing a business owner to plan to expand.

Lower interest rates mean consumers have extra money to spend on goods and services, which can have an impact on business planning.

Question 20

Explain business and consumer confidence levels in relation to two phases of the business cycle.

Answer 20

Business and consumer confidence levels refer to how businesses and customers are feeling about the economy.

During the peaks, wages/salaries are high, profits are at the highest level, employment is high, and unemployment is low.

During the troughs, wages/salaries are low, profits are at the lowest level, consumer spending is at the lowest, low employment, and high unemployment.

Question 21

Define the term ‘globalisation.’

Answer 21

The effect of hi-tech communications, lower transport costs and unrestricted trade and financial flows turning the whole world into a single market, producing a more integrated global economic system

Question 22

Define ‘corporate social responsibility’

Answer 22

Managing a business in such a way that the broader social welfare of the community, including its employees, customers, suppliers and the environment, is taken into consideration when making business decisions.

Question 23

Define business environment.

Answer 23

The surrounding conditions in which the business operates which can be divided into internal and external.

Question 24

Explain the types of personal motivations.

Answer 24

• Financial and personal independence
• Make a profit
• Fulfil a market need
• Fulfil a social need

Question 25

Explain the types of sources of business opportunity

Answer 25

• Innovation
• Market opportunities
• Changing customer needs
• Research and development
• Technological development
• Global markets

Question 26

Explain the types of characteristics of business entrepreneurs

Answer 26

Shared vision - clear direction and encourages staff to contribute to achieving it.

Initiative - taking the first step in a process.

Innovation and Enterprise - adding a new product or improving an existing product and taking risks to determine if the market is interested in their ideas.

Question 27

Define ‘business concept development’.

Answer 27

An original idea for a good or service that is different from anything already on the market, a distinct improvement on something already available, or that product is unavailable in a particular area.

Question 28

Explain the importance of business concept development.

Question 29

Explain the contributions to Australia’s economic and/or social wellbeing.

Question 30

Explain the methods businesses use to foster a culture of business
innovation or entrepreneurship.

Question 31

Explain the factors of corporate social responsibility.

Question 32

Explain the macro environment factors

Question 33

Explain the internal environmental factors

Question 34

Explain the impact of changing social values and attitudes on business planning.

Question 35

Explain the legal structures.

Question 36

Explain the advantages and disadvantages of legal structures.

Question 37

Explain the different types of business models.

Question 38

Explain the sources of finance.

Question 39

Explain the business support services.

Question 40

Explain the SWOT analysis.

Question 41

How does SWOT help a business?