Chapters 4,5 & 8 Flashcards Preview

Business Vce > Chapters 4,5 & 8 > Flashcards

Flashcards in Chapters 4,5 & 8 Deck (22):
1

How can a business help small businesses?

Through business incubators which can help by giving assistance and how to run a small business

2

How does KPI relate to benchmarking?

A KPI is measured to see te performance in terms of effectiveness and efficiency in the business. Through KPI a business can compare theirs to other small businesses

3

Compare financial objectives and non financial objectives?

Financial objectives are related to making a profit in the business,

Non financial objectives are aimed to see how the moral of the staff is going, how sustainable they are etc.

4

Compare the difference in efficiency and effectiveness?

Efficiency is aimed to see how much a. Business can get maximum output for minimal input

Effectiveness is aimed to see how well the objectives have been achieved

5

2 ways a business can fail?

Insolvency and bankruptcy

6

3 location factors for a SBO?

Three are personal being if the store is close to home

How the traffic flow is and the parking

The demographic of the area meaning age, gender and race

7

Ownership types and structures??

There are three of these...

Sole trader

Partnership

Company

8

How does an accountant help a small business operator

Through financial planning, taxation and valuation

9

Two decisions that need to be made before commencement?

1. The location

2. The hiring of staff

3. The layout and full of the business
As before u commence u would want an idea of what goes where and how to attract people into your store

10

Define intellectual property

The property of mind or intellect, can be an invention trademark or original design

11

2 types of intellectual property

Patents- you have exclusive to the product

Trade secrets- like recipes

Copy right

12

Two personal skills for a SBO?

Communication skills

Planning and marketing

13

Two qualities for a SBO?

Take risks

Think outside the square

Be confident

14

Two motivations behind starting a small business

To become wealthy

Be independent

Fill gap in the market

15

Advantages of buying an existing business?

Simpler process

Easier to finance

Generate cash flow easier

16

Disadvantage to buying existing business?

Buying someone else's failure

Overpriced

17

Advantages to buying franchise?

Been tested and is successful

Advice

Low risk and failing

18

Disadvantage to buying franchise

No independent

Can't make it your own

19

Define innovation and one small business innovation

Introduction of new methods, improving upon other things

Boost introduced an innovation by the introduction of healthy smoothies

20

Where to go for legality of footpath trading?

Financial advice?

Industry code of ethics?

Loca council and government

Accountant can help with all financial advice

Industry association and AI groups

21

True false

A successful entrepreneur
A potential SBO should
Franchise

T
T
F

22

Follow the ccadbdba if the first three are

Gap in the market
Chance of success
Sells or leases

Yes