Business EXAM

Question 1

What does RBA stand for?

Answer 1

Reserve Bank of Australia

Question 2

What must a business always consider?

Answer 2

Pricing

Question 3

What is a USP?

Answer 3

Unique Selling Proposition

Question 4

What does SME stand for?

Answer 4

Small to medium

Question 5

How many employees in a Micro business?

Answer 5

1 - 4

Question 6

How many employees in a Small business?

Answer 6

5 - 19

Question 7

How many employees in a Medium business?

Answer 7

20 - 199

Question 8

How many employees in a Large business?

Answer 8

200+

Question 9

What does BLC stand for?

Answer 9

Business Life Cycle

Question 10

What is the third stage of the BLC? Explain

Answer 10

Growth - Business’ profits are increasing with increasing popularity/awareness

Question 11

Name a business in the Growth BLC?

Answer 11

Tesla

Question 12

What is the fifth BLC? Explain

Answer 12

Post Maturity -
(After Maturity) business will either decline OR innovate and increase profits OR business will maintain.

Question 13

Name a business currently in the Post Maturity BLC?
Decline/Innovate - Explain

Answer 13

Decline:
Taxi’s
Book stores

Innovate:
Polaroids

Question 14

What is the first BLC? Explain

Answer 14

Seed - Business is just an idea

Question 15

What is the fourth BLC?

Answer 15

Maturity - business’ profits increase a little/strong customer base/slight increase market share

Question 16

What is an example of a business in the Maturity BLC?

Answer 16

McDonald’s / Myers

Question 17

What is the second BLC? Explain

Answer 17

Start Up - No one really knows about it yet / owners can’t take profit yet as business is still to small

Question 18

What business’ are currently in the Start Up BLC?

Answer 18

Link Tree

Question 19

What are the advantages and disadvantages of a business in the Growth BLC?

Answer 19

Advantages:
- increase market share
- increase profit
Disadvantages:
- demand not being met? (running out of stock/too big too fast)
- keeping customers?
- more staff

Question 20

What are the advantages and disadvantages of a business in the Maturity BLC?

Answer 20

Advantages:
- profits are stable
- market share still increasing?
Disadvantages:
- competition/keeping customers

Question 21

What are the advantages and disadvantages of a business in the Post-maturity BLC?

Answer 21

Advantages:
- possible innovation = increased market share/profits
Disadvantages:
- possible decline = out of business?

Question 22

What are the 4P’s in a successful product?

Answer 22

• PRODUCT - any good?
• PRICE - affordable?
• PLACE - where?
• PROMOTION - advertising/marketing?

Question 23

To analyse in business is to what?

Answer 23

SWOT analysis

Question 24

What does SWOT stand for?

Answer 24

Strengths
Weaknesses
Opportunity
Threats

Question 25

Describe the Business Environment?

Answer 25

Internal: - Employees (size of business) - Owners - Structure - Culture Operating: - Suppliers - Competiton / Customers (who?) - Interest groups MACRO: STEEPLE

Question 26

What does STEEPLE stand for?

Answer 26

Socio Cultural (trends) Technology (apps) Environment Economy ($) Politics Legal (fines/gov) Ethics

Question 27

What does CEO stand for?

Answer 27

Chief Executive Officer

Question 28

What is HR?

Answer 28

Human Resources

Question 29

What is Finance?

Answer 29

Accounting $$

Question 30

Marketing is what exactly?

Answer 30

Advertising/Brand

Question 31

What does EFTPOS stand for?

Answer 31

Electronic Funds Transfer Print Of Sale

Question 32

What are the three most common types of business structures in Australia?

Answer 32

Sole Trader - 1 person responsible for whole business Company - owners have limited liability Partnership - 2-20

Question 33

What is a Sole Trader? Advantages? Disadvantages?

Answer 33

Business owned by one person Advantages: All decisions made by person/all profits are owners Disadvantages: High risk/unlimited liability

Question 34

What is a Partnership? Advantages? Disadvantages?

Answer 34

Owned by 2 - 20 people Advantages: Share decisions Disadvantages: Unlimited Liability

Question 35

What is a Private Company? Advantages? Disadvantages?

Answer 35

1 - 50 Advantages: Shared decisions/increase funds/limited liability (owners only pay investment amount) Disadvantages: More costly/rules

Question 36

What is a Public Company?

Answer 36

5+ Owned by public Limited liability/buy on stock exchange/private individuals buy on ASX (Australian Securites Exchange)

Question 37

What does ASX stand for?

Answer 37

Australian Securites Exchange

Question 38

What does Industry sales ÷ Business sales =

Answer 38

Market Share %

Question 39

What is a Vision?

Answer 39

Owners hope for future of the business

Question 40

What is a Mission Statement?

Answer 40

Outlines ambitions and what achievements it hopes to make for its stakeholders.

Question 41

What is a SMART goal?

Answer 41

Specific Measurable Achievable Realistic Timely

Question 42

What is a challenge faced by businesses in the seed BLC?

Answer 42

Figuring out location/finance/website/marketing/time

Question 43

What is the difference between a profit-based and a non-for-profit business?

Answer 43

Profit based: - objective - $$$$ Not for profit: - objective - charity/volunteer

Question 44

What is GST?

Answer 44

Goods and Services Tax

Question 45

What are the four key business functions?

Answer 45

Marketing Operations HR Finance

Question 46

What is the difference between a strategy and a tactic?

Answer 46

Strategy: Plan/Goal Tactic: Individual steps