AOS 2

Question 1

BUSINESS MODELS

Answer 1

bricks and mortar, bricks and clicks, dtc (direct to consumer), franchise, import and export

Question 2

Business structures

Answer 2

soletrader, partnership, incorporated (private and public), social enterprise and government business enterprise (GBE)

Question 3

soletrader

Answer 3

one person, unlim liability, one person runs and operates business, take all responsibility
ad: low cost and no tax on profits
dis: unlim liability and liable for debts

Question 4

partnership

Answer 4

2-20 owners, similar to soletraders
ad: low cost and shared partnership
dis:unlim liability and liable for debt

Question 4

government business enterprise

Answer 4

business owner and operated by gov to make profit eg auspost abc
pros: taxpayer money used well

Question 5

proprietary (priv) business

Answer 5

must have at least one shareholder and max 50 + a director
small-medium size bus
pty ltd or proprietary limited after name
pro: limited liab, business has control over buying and selling of shares
cons: costly

Question 6

public incorp

Answer 6

minimum one person no max shareholders
pros: limited and public can buy and sell shares
cons: costs, double tax

Question 7

social enterprise

Answer 7

1-4 shareholders
social problems, usually charities
50% profits reinvested to expand
dont rely on donations
pros: motivated employees, community goals help generate profits
cons: gotta consider financial goals, hard to raise external finance

Question 8

bricks and mortar

Answer 8

physical location
pros: face to face, build a customer relationship
cons: expensive to establish, competition

Question 9

bricks and clicks

Answer 9

online presence
pros: open 24/7 and global reach
cons: no face to face interaction, competition

Question 10

direct to consumer (DTC)

Answer 10

sell products directly to consumer without intermediaries (eg retailers/wholesalers)
pros:Brand loyalty- high focus on connection with customers
lower costs
cons: online risk exposure

Question 11

franchise

Answer 11

buy rights to use business name and distribute goods or service of existing business
franchisor sells business to franchisee
pros: successful business formula, well recognized
cons: expensive, cant expand business

Question 12

import and export

Answer 12

import: buying products from overseas and bringing them to australia
export: selling products from australia overseas

Question 13

business resources

Answer 13

natural, labour, capital

Question 14

business locations