Bus Man Exam Unit 1

Question 1

Define the term ‘entrepreneurship’.

Answer 1

Entrepreneurship is the process of starting and running a new business to make a profit by identifying market opportunities.

Question 2

Q: Identify one successful entrepreneur and describe two characteristics that have contributed to their success.

Answer 2

Elon Musk’s success stems from his visionary thinking and resilience. He envisions revolutionary changes, like making space travel accessible with SpaceX and promoting sustainable energy with Tesla. Despite setbacks, he perseveres, turning failures into learning opportunities. These qualities drive his remarkable achievements as an entrepreneur.

Question 3

Outline one motivation for starting a business, using an example of an entrepreneur with whom you are familiar.

Answer 3

Desire to Change the World: Elon Musk started SpaceX with the goal of reducing the cost of space travel and making life multi-planetary, driven by a vision to ensure the long-term survival of humanity.Financial independence is a common motivation. For instance, Sara Blakely, the founder of Spanx, started her business with the goal of achieving financial freedom.

Question 4

Explain how two entrepreneurial characteristics have contributed to the success of an entrepreneur with whom you are familiar.

Answer 4

Jeff Bezos, the founder of Amazon, exemplifies customer focus and long-term vision. His relentless focus on customer needs and his ability to think strategically about the future have been critical to Amazon’s success.

Question 5

Identify three characteristics that a successful business manager is likely to have. Justify why each characteristic might be needed for a business to be successful.

Answer 5

Leadership: Inspires and guides the team towards achieving the company’s goals.
Decision-making: Navigates challenges and opportunities effectively,
Financial acumen: Manages resources wisely, making informed financial decisions that contribute to the company’s profitability.

Question 6

Using an example, explain how changing customer needs can provide opportunities for a business idea.

Answer 6

The increasing demand for sustainable products has created opportunities for businesses like Beyond Meat, which offers plant-based alternatives to meat products.

Question 7

Define the term ‘business opportunity’.

Answer 7

A business opportunity refers to a set of circumstances that allows entrepreneurs to create and establish a new business venture, often arising from unmet needs or changing market conditions.

Question 8

Explain why it is important for a potential business owner to set goals.

Answer 8

Setting clear goals provides direction, motivation, and a roadmap for the business, helping to focus efforts and track progress towards desired outcomes.

Question 9

Providing an example of each, distinguish between social goals and financial goals.

Answer 9

Social goals: TOMS Shoes donates a pair of shoes for every pair sold, aiming to make a positive social impact.
Financial goals: A company aims to achieve a specific revenue target, focusing on financial growth and sustainability.

Question 10

Define the term ‘decision-making’.

Answer 10

Decision-making involves selecting a course of action from available alternatives to achieve a specific objective, considering factors such as risks, benefits, and consequences.

Question 11

Explain the importance of decision-making in business.

Answer 11

Decision-making drives strategic direction, operational efficiency, and resource allocation, influencing the success and sustainability of a business.

Question 12

Analyze the relationship between business opportunities and business concept development.

Answer 12

Business opportunities and concept development are closely linked. Identifying a business opportunity involves recognizing unmet needs or gaps in the market. This opportunity is then transformed into a business concept, which outlines how to address these needs with a specific product or service, target market, and unique value proposition. For example, recognizing the growing demand for sustainable transportation led Elon Musk to develop Tesla’s electric vehicles, combining cutting-edge technology with environmental consciousness.

Question 13

Define the term ‘business concept’.

Answer 13

A business concept refers to the fundamental idea or vision for a new business venture, outlining the product or service offering, target market, and value proposition.

Question 14

Explain why it is important to assess the market before commencing a business.

Answer 14

Market assessment helps understand demand, competition, and consumer preferences, reducing risks associated with business launch.

Question 15

Explain how a business has used market research or feasibility studies to assist them with decision-making.

Answer 15

Starbucks uses market research to develop products and select locations, informed by consumer preferences and market demand.

Question 16

Outline the main purpose of market research.

Answer 16

Market research aims to gather information on consumer needs and preferences to inform strategic business decisions.

Question 17

Describe two economic contributions that businesses make to the nation.

Answer 17

Job creation: Businesses provide employment opportunities, contributing to economic growth and stability.
Tax revenue generation: Businesses generate tax revenues for governments, supporting public services and infrastructure development.

Question 18

Explain two ways in which behaving in a socially responsible manner could make a business more profitable in the long run.

Answer 18

Behaving in a socially responsible manner can make a business more profitable in the long run by enhancing brand reputation and mitigating risks. A strong reputation for ethical and sustainable practices attracts loyal customers and can command premium prices, boosting sales. Additionally, adhering to ethical standards helps avoid costly legal issues and reputational damage, ensuring more stable financial performance and greater investor confidence.

Question 19

Describe two methods by which the Australian government supports and funds businesses to undertake research and development that fosters innovation and entrepreneurship.

Answer 19

R&D Tax Incentive: Provides tax offsets for eligible R&D activities, encouraging innovation investment.
Grants and funding programs: Direct financial support to businesses for R&D projects, promoting innovation and entrepreneurship.

Question 20

: Explain how council grants for new businesses can foster a culture of business innovation and entrepreneurship.

Answer 20

Council grants reduce startup costs and provide financial support, incentivizing risk-taking and innovation among aspiring entrepreneurs.

Question 21

What is the internal environment?

Answer 21

Factors and stakeholders within the organization affecting operations, such as employees, management, culture, and organizational structure.

Question 22

Outline one stakeholder in the internal environment.

Answer 22

Employees play a crucial role in the day-to-day operations and success of the business.

Question 23

Outline one similarity between a sole trader and a partnership.

Answer 23

Sole Trader: A sole trader is a business owned and operated by a single individual who assumes all responsibilities and liabilities.
Partnership: A partnership is a business owned and operated by two or more individuals who share responsibilities and liabilities.Both have owners liable for debts. However, sole traders have single ownership, while partnerships involve multiple owners.

Question 24

Compare private and public companies, with an example of each.

Answer 24

Private companies are privately owned, while public companies are owned by shareholders. Example: Private - IKEA, Public - Apple Inc.

Question 25

Differentiate between incorporated and unincorporated businesses.

Answer 25

Incorporated entities have a separate legal identity, while unincorporated ones do not. Example: Incorporated - Corporation, Unincorporated - Sole trader.

Question 26

Discuss one advantage and one disadvantage of a private company going public.

Answer 26

Going public enables a private company to raise substantial capital through the sale of shares, but it also entails increased administrative and compliance costs. It grants access to a larger pool of capital but brings increased regulations and scrutiny.

Question 27

Explain why a business owner might choose a sole trader structure.

Answer 27

Sole traders may choose this structure for its simplicity in operation and decision-making, as well as the ability to directly reap all profits. It offers simplicity and control over decision-making.

Question 28

Describe various business models with examples.

Answer 28

Each business model serves different customer needs and market segments, requiring unique strategies for success. Models include online, direct-to-consumer, bricks and mortar, social enterprise, franchise, importer, and exporter.

Question 29

Propose a suitable business model for a new pizza recipe. Highlight one advantage and one disadvantage.

Answer 29

A franchise model offers brand recognition and operational support, but franchisees must adhere to strict franchisor guidelines and pay ongoing fees. While a franchise model offers brand recognition and operational support, franchisees must adhere to strict franchisor guidelines and pay ongoing fees.

Question 30

Discuss the costs and benefits of purchasing an existing business compared with establishing a new one.

Answer 30

Acquiring an existing business mitigates startup risks by inheriting a proven business model and established customer base, but it may involve a higher initial investment compared to starting from scratch. Purchasing an existing business allows for immediate cash flow

Question 31

Explain the distinction between natural and capital resources.

Answer 31

Natural resources are essential inputs for production processes, while capital resources represent the tools and equipment used in production. Natural resources, like water and wood, are from nature, while capital resources, such as machinery and tools, are man-made.

Question 32

Identify two business resource needs relevant to a bakery and provide examples.

Answer 32

Bakery businesses require raw materials like flour and sugar for product manufacturing, as well as equipment such as ovens and mixers for production processes. Ingredients like flour and equipment such as ovens are essential for a bakery's operations.

Question 33

Explain two factors to consider when selecting a business location.

Answer 33

When selecting a business location, two crucial factors to consider are the proximity to the target market and the cost of operations. Proximity to the market ensures reduced transportation costs, increased convenience, and better accessibility, leading to higher sales and customer satisfaction. Simultaneously, opting for a location with affordable operating costs, encompassing expenses like rent, utilities, taxes, and labor, aids in optimizing financial resources and enhancing competitiveness within the market.

Question 34

Describe three types of locations from which a business can operate.

Answer 34

Businesses can operate from retail storefronts, home-based setups, or online platforms. Retail storefronts provide high visibility and foot traffic, home-based businesses offer cost savings and flexibility, and online platforms enable global reach and scalability.

Question 35

Describe two sources of finance available to establish a business and discuss one advantage and one disadvantage of each.

Answer 35

Bank loans provide access to capital without relinquishing ownership control, but they require regular loan repayments and may be difficult to obtain without sufficient collateral. Personal Savings, which they provide flexibility, perserving ownership control. But relying on this has a limit which, it may redue the growth potential in your business.

Question 36

Describe two business support services suitable for an entrepreneur in the initial planning stages.

Answer 36

Financial services provide assistance with financial planning, budgeting, and securing funding, while technological support helps businesses leverage digital tools for efficiency and growth. Legal services provide guidance on regulatory compliance, while mentoring offers advice from experienced professionals.

Question 37

Explain the term ‘SWOT analysis’ and its application in evaluating a business’s current situation.

Answer 37

a strategic planning tool used to assess the strengths, weaknesses, opportunities and threats of your business. Developing a SWOT analysis can help you look at your business in a new way and from different directions.

Question 38

Corporate social responsibility management issues regarding business planning.

Answer 38

n addition to ethical labor practices and environmental sustainability, businesses must also consider their impact on local communities and social welfare in their CSR efforts. They need to ensure fair treatment of suppliers, promote diversity and inclusion, and engage in philanthropic activities.

Question 39

Describe two corporate social responsibility management issues regarding business planning.

Answer 39

Ethical labor practices and environmental sustainability are critical considerations in CSR and business planning. It involves ensuring fair wages, safe working conditions, and environmentally friendly practices throughout the supply chain.

Question 40

Discuss the costs and benefits of purchasing an existing business compared with establishing a new one.

Answer 40

establishing a new business offers the opportunity to build a brand from scratch and tailor operations to specific market demands, but it requires extensive planning and may face initial financial challenges. While purchasing an existing business mitigates startup risks by inheriting a proven business model and established customer base

Question 41

Distinguish between the internal and external environment.

Answer 41

The internal environment consists of factors within a business that directly impact its operations, such as organizational culture and resources. The external environment includes factors outside the business, like economic conditions and regulatory changes, which also affect its operations.

Question 42

Explain what is meant by the term ‘operating environment’.

Answer 42

The operating environment refers to the specific external factors that directly affect a business's day-to-day operations and decision-making processes.

Question 43

Explain what is meant by the term ‘macro environment’.

Answer 43

The macro environment comprises broader external factors that influence a business but are beyond its immediate control, such as economic conditions, technological advancements, and sociocultural trends.

Question 44

Provide an overview of key legal and government regulations affecting businesses in the planning stage.

Answer 44

Non-compliance with legal and government regulations may result in fines, lawsuits, or loss of business license. Additionally, it can damage a company's reputation and lead to decreased consumer trust.

Question 45

Outline three possible consequences for a business that does not adhere to key legal and government regulations.

Answer 45

Non-compliance with key legal and government regulations can lead to severe consequences for a business. These include legal penalties such as fines or lawsuits, which can significantly impact financial stability. Additionally, non-compliance can damage the business's reputation, resulting in loss of customer trust and decreased sales. Furthermore, it can cause business disruption, including temporary shutdowns or loss of licenses, negatively affecting operations and relationships with stakeholders.

Question 46

Discuss societal attitudes and behavior such as values, beliefs, and trends.

Answer 46

Society values sustainability, influencing businesses to adopt environmentally friendly practices. This may lead to the incorporation of eco-friendly initiatives in business strategies, such as reducing carbon footprint or using sustainable sourcing.

Question 47

Explain how one trend may affect business planning.

Answer 47

The trend of increased remote work may impact business planning by necessitating investment in virtual collaboration tools and flexible work policies to accommodate remote employees.

Question 48

Explain what ‘societal attitudes and behavior’ refers to and why it is important for businesses to consider this factor when planning.

Answer 48

Societal attitudes and behavior encompass prevailing beliefs, values, and cultural norms that shape consumer preferences and expectations. Considering these factors helps businesses align their products and marketing strategies with societal needs, enhancing customer satisfaction and brand reputation.

Question 49

Describe economic conditions such as how interest rates, tax rates, business, and consumer confidence levels affect business planning.

Answer 49

Economic conditions significantly impact business planning. High interest rates increase borrowing costs, discouraging investment and expansion. Higher tax rates reduce net profits, affecting cash flow and financial planning. Low business and consumer confidence levels lead to decreased spending and investment, causing businesses to adopt more conservative strategies. Conversely, low interest rates and favorable tax policies can stimulate growth and expansion, while high confidence levels boost spending and investment, encouraging more aggressive business planning and development.

Question 50

Explain the importance of considering economic conditions when planning a business.

Answer 50

Economic conditions, such as GDP growth, inflation rates, and unemployment levels, directly impact consumer purchasing power, market demand, and cost of doing business. Considering these conditions helps businesses anticipate market trends and adjust their strategies accordingly to remain competitive.

Question 51

Outline how business and consumer confidence levels affect the decisions made when planning a business.

Answer 51

Business and consumer confidence levels reflect perceptions of economic stability and future prospects, influencing investment decisions and consumer spending behaviors. High confidence levels may lead businesses to undertake expansion plans and increase product offerings, while low confidence levels may result in cautious spending and reduced investment.

Question 52

Discuss technological issues such as how the market may change in the future and developments in technology.

Answer 52

Businesses must stay abreast of technological advancements to remain competitive, capitalize on emerging opportunities, and adapt their operations to evolving consumer preferences and market trends.

Question 53

Explain global issues such as overseas competitors, overseas markets, offshoring labor, exchange rates, patenting, copyrights, trademarks, and online sales.

Answer 53

Overseas competitors may offer lower-priced alternatives, forcing domestic businesses to innovate or lower prices to remain competitive. This can impact pricing strategies and market positioning for businesses.

Question 54

Discuss customer needs and expectations.

Answer 54

Customer needs refer to essential requirements like product quality and affordability, while expectations include standards of service and experience, such as timely delivery and customer support. Meeting these needs and expectations builds loyalty, enhances reputation, and drives sales and long-term growth.

Question 55

Describe competitors’ behavior

Answer 55

Monitoring competitor behavior helps businesses identify market trends, anticipate competitive threats, and adjust their strategies to maintain or gain market share. It also provides insights into competitor strengths and weaknesses, informing strategic decision-making and product development efforts.

Question 56

Outline how consumers can put pressure on businesses to alter their business planning.

Answer 56

Consumers can pressure businesses to alter their business planning through boycotts, negative publicity on social media, or demanding changes to products or services to align with ethical or environmental standards.

Question 57

Explain suppliers of business resources and considerations regarding the supply chain, such as from where resources are sourced and how they reach the business.

Answer 57

Suppliers and the supply chain play a crucial role in business planning by ensuring the timely and efficient delivery of resources and materials needed for production. Disruptions or delays in the supply chain can impact operations, production schedules, and overall business performance.

Question 58

Discuss special interest groups such as environmental lobby groups, business associations, and unions.

Answer 58

Special interest groups are organizations or associations formed to advocate for specific causes or interests, such as environmental conservation, labor rights, or industry regulation. These groups may influence business planning through lobbying efforts, public campaigns, or legal actions aimed at promoting or enforcing particular social or environmental policies.

Question 59

Define the following terms: Corporate Social Responsibility (CSR)

Answer 59

CSR is a business's commitment to operating ethically and sustainably while considering social, environmental, and economic impacts. For example, using eco-friendly materials or ensuring fair labor practices.

Question 60

what is Financial Control

Answer 60

Financial control involves processes and systems a business uses to manage, monitor, and safeguard its financial resources, such as using budgets, audits, and cash flow tracking. An example can be cash flow management

Question 61

Purpose of a bank account and an example

Answer 61

Purpose (2 marks): Opening a business bank account separates personal and business finances, which ensures clearer financial records, helps manage cash flow, and makes tax reporting easier. Example (1 mark): An example is the ANZ Business Advantage Account, specifically designed for business use.

Question 62

what are Record-keeping and financial control strategies, and give examples

Answer 62

Record-keeping strategy Using digital accounting software like QuickBooks helps a business accurately track income and expenses, reduces errors, and ensures compliance with tax laws. Financial control strategy Implementing a dual-approval process for payments ensures that no transactions occur without authorization, reducing fraud risks and improving accountability.

Question 63

Describe one external professional and their services:

Answer 63

An accountant is a key external professional for business establishment. They provide financial advice, assist with tax registration (e.g., ABN and GST), and help set up accounting systems. They also create budgets and monitor compliance with tax regulations.q

Question 64

Distinguish between a policy and a procedure

Answer 64

olicy (1 mark): A policy is a general guideline or principle for decision-making. Example: A harassment policy outlines that the workplace does not tolerate harassment. Procedure (1 mark): A procedure is a step-by-step action plan to implement a policy. Example: The harassment reporting procedure explains how employees can file complaints and how management investigates them. Distinction (1 mark): Policies provide the "what" and "why," while procedures outline "how" to implement the policy.

Question 65

Legal requirement for small business

Answer 65

Requirement (2 marks): Registering a business name is a legal requirement. This ensures the name is unique and legally protects it. Example (1 mark): A café must register its name with the Australian Business Register (ABR) to operate under that name.

Question 66

Evaluate the benefits and costs of establishing overseas contacts and retailers:

Answer 66

Benefits: Expanding overseas provides access to larger markets, enabling increased sales and revenue. It reduces production costs by sourcing cheaper labor or materials and builds global brand recognition, positioning the business for long-term growth. Costs: Logistical challenges such as shipping, customs, and inventory management can complicate operations. Communication barriers, including language and cultural differences, may lead to inefficiencies. Additionally, compliance with international trade laws and tariffs can be costly and time-consuming.

Question 67

Discuss the considerations in choosing appropriate suppliers and how it meets CSR objectives:

Answer 67

Considerations: Businesses should prioritize suppliers with ethical practices, such as fair wages and safe working conditions. Environmental impact is also key, with a focus on sustainable materials and waste reduction. Reliability in quality and timely delivery is essential for smooth operations. CSR Objectives: Choosing responsible suppliers enhances the business’s reputation and attracts socially conscious consumers. It supports environmental sustainability and fosters long-term success, demonstrating commitment to ethical and sustainable practices.

Question 68

Define market research (

Answer 68

Market research is the process of collecting, analyzing, and interpreting information about customers, competitors, and market trends to make informed business decisions.

Question 69

Relationship between market research and net profit/market share

Answer 69

Market research helps businesses understand customer needs, enabling them to design products or services that meet demand. This leads to higher customer satisfaction and increased sales, improving net profit. Additionally, by identifying gaps in the market or competitor weaknesses, businesses can attract more customers, increasing their market share.

Question 70

Market segmentation and its benefits

Answer 70

Market segmentation divides the market into distinct groups based on characteristics like demographics, behavior, or geography. For example, targeting young professionals (demographic segmentation) allows a business to tailor its marketing strategies, such as offering sleek, affordable products, to this group. This focus maximizes sales by meeting specific customer needs and improves net profit by reducing wasted resources on less relevant audiences.

Question 71

Distinguish between primary and secondary data

Answer 71

Primary data is original information collected directly by the business, such as customer surveys. Secondary data is pre-existing information, such as industry reports. Using charts, a survey measuring customer satisfaction (primary) differs from analyzing an industry report on customer demographics (secondary).

Question 72

CSR practices in marketing

Answer 72

Corporate social responsibility practices, such as using sustainable materials or ethical sourcing, can be incorporated into marketing campaigns to appeal to socially conscious consumers. For instance, promoting eco-friendly packaging shows commitment to environmental sustainability, attracting environmentally aware customers, enhancing brand reputation, and driving sales.

Question 73

Identify and explain three 7P’s of marketing with strategies

Answer 73

Product: Focus on quality and innovation. Strategy: Offer a unique feature, such as organic ingredients, to differentiate the product. Price: Set competitive yet profitable pricing. Strategy: Use promotional discounts to attract cost-sensitive customers. Promotion -

Question 74

The 4 Stages of the Product Life Cycle

Answer 74

Introduction: Product launch; low sales, high costs, minimal profits. Growth: Rapid sales increase, rising profits, focus on brand loyalty. Maturity: Sales stabilize, peak, competition grows, profits level or decline. Decline: Sales and profits decrease, product may become obsolete, decisions on discontinuation or innovation.

Question 75

what are the 7ps of marketing

Answer 75

The 7Ps of marketing are product, price, place, promotion, people, process and physical evidence

Question 76

Effect of product life cycle on a 7P’s element

Answer 76

During the growth stage, promotion focuses on creating brand loyalty. Strategies include social media campaigns and customer incentives to reinforce the brand image as sales peak.

Question 77

Trends in customer complaints and refunds

Answer 77

The trend of rising complaints and refunds negatively impacts the business's reputation, leading to reduced customer trust. This decreases sales revenue and ultimately reduces net profit.

Question 78

Strategy to improve negative customer trends

Answer 78

Implementing customer feedback systems, such as surveys, allows businesses to identify and address common issues. Training staff in customer service can also reduce complaints and improve customer satisfaction.

Question 79

Public Relations strategies and business objectives

Answer 79

Public relations strategies build a positive image, fostering trust and loyalty. For example, a successful PR campaign can attract customers, increasing sales and achieving the objective of higher revenue.

Question 80

Steps to repair negative image

Answer 80

Set Objectives: Rebuild trust and improve customer perception. Target Audience: Focus on dissatisfied customers and the broader public. Message: Highlight improvements like better driver training and customer service. Strategies: Launch a transparent social media campaign or community outreach programs. Evaluation: Monitor public sentiment and sales to assess effectiveness.

Question 81

Effect of ineffective PR strategy

Answer 81

If the PR strategy fails, the taxi industry’s image and reputation will worsen. Customers may continue switching to competitors like Uber, resulting in declining sales and market share.

Question 82

Importance of positive customer relationships

Answer 82

Maintaining a positive relationship fosters loyalty, repeat business, and positive word-of-mouth. This strengthens the brand’s reputation and ensures long-term profitability.

Question 83

Describe how technology has assisted businesses in marketing their products.

Answer 83

Technology has enabled businesses to reach a wider audience through digital platforms, use data analytics for targeted marketing, and engage with customers via social media and online advertising.

Question 84

Relationship between staffing performance and business objective

Answer 84

The performance of staffing directly impacts a business objective, such as improving customer service. Well-trained and motivated staff provide high-quality service, leading to increased customer satisfaction and retention, which aligns with the business objective of growth or profitability.

Question 85

Job description and job specification assisting Me Medical Centre

Answer 85

A job description outlines the duties and responsibilities of a role, ensuring staff are clear on expectations. A job specification details the required skills, experience, and qualifications. Together, they help Me Medical Centre hire the right people for the right roles, improving service delivery and client care by ensuring staff meet the needs of the job.

Question 86

Advantage and disadvantage of external recruitment method

Answer 86

Advantage: External recruitment methods, such as online job portals, bring in fresh perspectives and new ideas, which can drive innovation at Me Medical Centre. Disadvantage: External recruitment can be costly and time-consuming due to the need to advertise, review applications, and train new employees. It can also result in a longer onboarding process compared to hiring from within.

Question 87

A Selection method for Me Medical Centre

Answer 87

A structured interview is a selection method where candidates are asked a set of predefined questions. This method ensures all candidates are evaluated equally and fairly, helping management assess their qualifications, skills, and fit for the role.

Question 88

Advantage and disadvantage of structured interview

Answer 88

Advantage: A structured interview provides consistency, ensuring each candidate is assessed based on the same criteria, reducing bias. Disadvantage: It may not allow for in-depth exploration of a candidate's personality or adaptability, as the questions are rigid.

Question 89

what do Management and employee expectations mean?

Answer 89

Management Expectation: Management at Me Medical Centre expects employees to be punctual, reliable, and committed to providing quality healthcare services. Employee Expectation: Employees expect fair treatment, adequate training, and opportunities for professional development, fostering a positive and supportive work environment.

Question 90

Benefit of an effective induction program

Answer 90

An effective induction program helps new employees integrate smoothly into the workplace. It provides essential information about the organization’s policies, procedures, and culture, ensuring employees feel supported and confident in their new roles, ultimately leading to higher job satisfaction and retention.

Question 91

Method of employee induction Method of employee induction

Answer 91

A buddy system can be used for employee induction, where a new employee is paired with an experienced staff member. This method provides guidance, answers questions, and helps the new employee integrate faster into the team, ensuring a smoother transition.

Question 92

Legal obligation in staffing and effect on net profit

Answer 92

Me Medical Centre must comply with Occupational Health and Safety (OHS) regulations, ensuring a safe work environment. Failure to comply could lead to workplace injuries, resulting in compensation claims and legal fees. This would increase costs, reducing the clinic's net profit.

Question 93

Strategy for staffing using CSR and its advantage/disadvantage

Answer 93

A CSR-based staffing strategy could involve hiring staff from local communities or underrepresented groups to promote diversity and community support. Advantage: This strategy strengthens the business’s reputation and demonstrates its commitment to social responsibility, attracting customers who value ethical practices. Disadvantage: It may lead to a smaller talent pool, potentially limiting the selection of highly qualified candidates, which could impact the quality of service.