business model

Question 1

what is a business model

Answer 1

the way a business will run its operations to generate a profit

framework for how business earns income

may need to be changed as the business grows

Question 2

what factors should be considered when choosing a business model

Answer 2

whats the main goal of the business
who are the target customers\
what is the good or service
how will it be sold

Question 3

what is an online business

Answer 3

exists mainly on the internet with a small number of offices to facilitate business operations

Question 4

pro and con of online business

Answer 4

reach customers global

no customr face to face inetractions

Question 5

what is bricks and mortar

Answer 5

businesses that have a physical location like a store in a shopping centre some have online presence to compliment physical stores

Question 6

pro and con of bricks and mortar

Answer 6

promote face to face customer interaction

expensive to establish

Question 7

what is direct to consumer businesses

Answer 7

Businesses that sell their products directly to consumers without any intermediaries, like retailers or wholesalers

Question 8

what is a pro and con of direct to consumer businesses

Answer 8

Less costly to operate than a bricks and mortar since there is no need for expensive real estate for stores and warehouses

Customers can be open to cyber threats

Question 9

what is a franchise

Answer 9

A business structure where the buyer (the franchisee) pays a licensing fee to trade using the branding, trademarks, products, suppliers, and systems of an established business (the franchisor).

Question 10

whats a pro and con of a franchise

Answer 10

pro - higher success rate

con- profits and fees favour franchisor

Question 11

what is an importer

Answer 11

Businesses that source goods from overseas for sale in Australia due to their superior quality, cheaper cost of production or lack of viable local alternatives.

Question 12

whats a pro and con of an importer

Answer 12

provide good that are not readily available locally

cost of purchasing goods from international manufacturers

Question 13

what is an exporter

Answer 13

Businesses that sell Australian-made goods and services to overseas customers.

Question 14

whats a pro and con of an exporter

Answer 14

australian business can expand to new market

costly to purchase goods internationally