BM

Question 1

Business Opportunity

Answer 1

is a set of circumstances that a person can perceive as an avenue

Question 2

Potential business owners

Answer 2

are always searching for opportunities, including ideas for new products, new customers, and new ways of running a business.

Question 3

Innovation

Answer 3

is creating a new good/product service or process or significantly improving an existing one.
Ex: DVD player and PC are an innovation on an existing product.

Question 4

Innovation and Invention

Answer 4

Invention is about making a new item or finding new ways of making items whereas innovation is when someone improves or makes a significant contribution to an existing product, process, or service.
Innovation flows from the invention.

Question 5

Innovation benefits

Answer 5

• new efficient processes can same time, money and create less waste.
• Give a competitive advantage(facett)
• builds culture of innovation to encourage creative thinking and problem solving

Question 6

Innovation benefits 2

Answer 6

successful exploitation of new ideas is crucial to a business being able to improve its processes, bring new and improved products and services to market, increase its efficiency and, most importantly, improve its profitability.

Question 7

Entrepreneurship

Answer 7

the ability and willingness to start, operate and assume the risk of a business venture in the hope of making a profit.

Question 8

An entrepreneur

Answer 8

• Seeks out opportunities
• manage business activities
• takes calculated financial risks
• experience business success and sometimes failure

Question 9

Market opportunities

Answer 9

Refers to the chances to increase trade caused by the changing trends in a market with the key ability to recognise the market trend.

ex: A certain aesthetic in fashion may be trending, therefore, more customers would demand particular types of clothing which either increase or decrease sales or even make an opportunity for new buisness

Question 10

Changing customer needs

Answer 10

Markets are constantly changing as are the needs of the customers.
A new business might find opportunities by focusing on one of these changes

Question 11

Changing incomes

Answer 11

Increase in incomes may mean that they more products, particularly more luxurious.

or if its increasing they are likely to demand cheap or fewer products.

Question 12

Change in taste and fashion

Answer 12

Changes can increase or reduce the demand for certain products.

Question 13

Prices of complementary and substitute goods and service

Answer 13

Some products are complementary; they go together like car and petrol

Others are substitutes; they can replace each other like tea and coffee.

This means that if the price of petrol increases then demand petrol will fall; which can cause demand for cars to fall because cars and petrol are complimentary. Leading for the demand of large cars switching to small cars as they consume less petrol

Question 14

Changing population

Answer 14

changes in age and gender distribution will have an impact on demand: for example , an ageing population is likely to demand products related to the heath and retirement industries

Question 15

Changing expectation about the market, including future prices and incomes

Answer 15

This means that customers will act in a certain way if they expect that something is going to happen.

Question 16

Changes in the number of potential customers:

Answer 16

An increasing number of customers often generates greater demand for products, whereas a decline in the number of potential customers is likely to reduce demand.

Question 17

R&D

Answer 17

a set of activities undertaken to improve existing products and improve production processes

• Theorsing and hypotheszing
• Exploring and clarifying
• products design and development

Ex: it can allow a person to develop new products in response to the actions of any competitors.
Also lead to technological developments, such as robotics and information technology that improve the way the product is produced or the way it is delivered to its customers

Question 18

Technology Development

Answer 18

Refers to application of knowledge that have changed people’s lives and changed the way in which business operate

New communication technologies allow ideas and information to be transmitted rapidly to an ever increasing number, making it easier for customers to learn about products made overseas.
TD such as mobile phones and internet have helped open the global market

Question 19

Global markets

Answer 19

refers to markets being global, meaning that goods and services are exchanged between businesses and customers across the world.

provides opportunities for people seeking ideas for new businesses because it means that the potential business owner can have access to more customers and more sales.

Question 20

Benefits of the global market

Answer 20

-Opportunity to grow further and expand business

• Access to global customers
  
  • Access to overseas suppliers
  • Access to natural resources not in home country
  • Access to overseas workers and labour laws
  • Access to overseas tax laws and government subsides
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• Access to global customers
  
  • Access to overseas suppliers
  • Access to natural resources not in home country
  • Access to overseas workers and labour laws
  • Access to overseas tax laws and government subsides

Question 21

Personal Motivation

Answer 21

The desire for independence :
The great attraction is the belief that owners will have more control over their own destiny. Some people dream about starting their own business and becoming wealthy. The potential for long-term financial independence is also a motive for starting a new business.

Question 22

To make profit

Answer 22

meone willing to work hard may believe that they can earn much more by working for themselves than they would by working for someone else. They would expect their extra effort to be rewarded through the profits from their own business.

Question 23

To fulfill a social need

Answer 23

a social enterprise may be established in order to fulfill a social need. This is a business that makes a profit, or surplus, but concentrates on some sort of community or environmental need.

Question 24

To fulfill a market need

Answer 24

The potential business owner may have particular skills that can be the basis of a new business, or may recognise that particular goods or services for which there is a demand are not available in a particular suburb or town. In some cases an invention or the development of a new product will inspire the developer of that product to set up a business to market it.

Question 25

Goal setting in business

Answer 25

Goals in a business describe what a buisness expects to accomplish over a set period. Without a goal, a business has no clearly defined purpose and nothing to aspire to. Goals provide a business with direction and help to measure results. Setting goals can also allow the potential business owner to develop their ideas for a business. Setting goals is an important step in helping a business realise its vision of where it wants to be in the future Goals are the motivating force behind a buisness

Question 26

make the goals S.M.A.R.T.

Answer 26

S.M.A.R.T. goals are specific, measurable, attainable, relevant and time bound. Mid- to short-term goals that are specific and measurable are often referred to as objectives.

Question 27

Financial Goals

Answer 27

These goals involve making a monetary return and can be measured in figures - Making a profit Profit is what is left after business expenses have been deducted from money earned from sales (revenue). Many businesses not only want to make a profit but also want to maximize their profit. A business may set several other goals to support its main goal of maximizing profit. ``` Increase sales Increase market share: Market share is a business’s share of total industry sales. Expand the business Maximizing the return on investment Improving the way business operates ```

Question 28

Social Goals

Answer 28

Aim to make a positive impact on the environment, employee's, the community or other stakeholders

Question 29

Provision of employment

Answer 29

A goal to employ disadvantaged members of the community such as those with a disability, Indigenous Australians or homeless/unemployed They may also value diversity and inclusion and try to employ people from a range of backgrounds (eg. age, gender, nationality) A business may also aim to employ members of the local community rather than outsource functions to overseas

Question 30

Social Justice

Answer 30

Businesses may promote awareness of a particular social issue or engage in activities that support a social cause (such as poverty or homelessness).

Question 31

Market share

Answer 31

The percentage of sales that a particular business controls in an industry or market. In order to increase market share, a business will need to aim to become more competitive.

Question 32

a successful Manager

Answer 32

``` communication planning delegation leading decision making interpersonal ```

Question 33

Characteristics of successful entrepreneurs

Answer 33

A shared vision initiative innovation and enterprise

Question 34

A shared vision

Answer 34

They have an understanding or hope of what the business will be like in the future. This gives the business a clear direction. Having a shared vision means that everyone in the business works together, as a team, to develop and then accomplish a goal. When this happens, it is much more likely that staff will enthusiastically contribute to making sure the vision is achieve t

Question 35

Initiative

Answer 35

They will take the first step in a series of actions or in a process Frequently without someone telling them to take the step instead of being independent

Question 36

Business concept

Answer 36

describes the core activites of the buisness and the specific features and value of the goods or services it provides.

Question 37

Inspiration for new ideas

Answer 37

listening to people, particularly for ideas on the goods or services people want, but that may not be readily available reading magazines and books and researching on the internet visiting displays and exhibitions in areas such as new technology or new products from overseas accessing government statistics and research information identifying a ‘gap in the market’ — that is, a demand not currently being satisfied determining improvements that could be made to an existing product.

Question 38

IP

Answer 38

refers to the ownership of ideas or proprietary knowledge. Basically, the productive new ideas you create. It can be invention, trade mark, design, brand or the application of your idea

Question 39

Trademark

Answer 39

A trademark provides the owner with exclusive or legal rights for a logo, symbol, word or slogan/phrase that is identifiable with a certain product Trademarks are territorial and must be filed in each country where protection is sought

Question 40

Patent

Answer 40

A patent provides owner with exclusive or legal rights for an invention such as the design or process - The creator has to make a formal application to intellectual Property Australia to be given that right - If the right is awarded then the inventor has the sole legal right to do what they want with their invention-- sell it, licence it out to others, or just do nothing. - Aims-- is to protect the intellectual property of the developer, and make sure it is worthwhile for people to take the time, trouble and expense to develop new inventions - When a person is awarded the patent they have to explain the new invention in the patent application, and this is made public - Patents are territorial and must be filed in each country where protection is sought

Question 41

Copyright

Answer 41

Is free and automatic protection of original works such as writing, music, art, films, sound recording, broadcast and computer games

Question 42

Market research

Answer 42

is a process involving gathering and analysing information concerning a specific market. Involves these steps: -Identifying what information is needed to make a decision about the potential of the business. For example, someone wanting to set up a pet care business would want information about pet numbers and types in a particular area. Gathering the relevant information from appropriate sources. This could involve surveys or interviews, or examining government statistics. Market research businesses can be hired to carry out this research. Analysing and interpreting the relevant results to extract some clear information that will assist in decision making. This analysis can give the potential business owner an idea of the market conditions that exist for the proposed good or service.

Question 43

A feasibility study

Answer 43

is an assessment of the business idea's potential for success. This involves determining how practical the idea is and if it would successfully translate to the market Includes: An assessment of the market: involves analysing the level and type of demand for new or improved product, who and where potential customers are and will they buy it. Consideration of the operation: describing the product that will be sold, the resources needed, location of the business, and legal requirements an analysis of commercial feasibility. This involves considering the financial aspects of the business idea, such as how long it will take before the business has its first sale, how the price of the product will be determined, how much finance will be needed to start the business and sustain operations, as well as forecasting sales, costs, cash flow and profit.