exam 1

Question 1

External environment

Answer 1

Involves surrounding factors of a business which it has minimal control over

Question 2

Macro factors

Answer 2

social, legal, technological and economic conditions that a business has no control over

Question 3

Operating factors

Answer 3

Primary external factors which a business has some control over

Question 4

societal attitudes

Answer 4

the collective values, beliefs and opinions held by a group of people

Question 5

Societal behavior

Answer 5

way people act and respond in various situations

Question 6

why should technological developments be considered when planning

Answer 6

can improve different aspects of their business and its operations. eg eftpos, automated production lines, websites and social media

Question 7

overseas competitors

Answer 7

businesses that are located in different countries that operate in the same industry

Question 8

overseas markets

Answer 8

any market that are outside of a business’s own country

Question 9

offshoring of labour

Answer 9

moving its services or processes to another country

Question 10

online sales

Answer 10

buying and selling goods and services using the internet

Question 11

global sourcing of inputs

Answer 11

business acquiring raw materials and resources from overseas suppliers

Question 12

overseas manufacture

Answer 12

business producing goods or services outside of the country where its headquarters are located

Question 13

global outsourcing

Answer 13

transferring specific business activities to an external business in an overseas country

Question 14

corporate social responsibility

Answer 14

the ethical conduct
of a business beyond
legal obligations, and
the consideration of
social, economic, and
environmental impacts
when making business
decisions

Question 15

what are the 5 main reasons people start businesses

Answer 15

personal independence, financial independence, to make a product, to fulfil a market need and fulfil a social need

Question 15

what is personal independence

Answer 15

involves a person being in control of their own decisions and actions.

Question 16

what is financial independence

Answer 16

the ability to fund a desired lifestyle without relying on income from another individual

Question 17

What is making a profit

Answer 17

involves a business generating more revenue than expenses it incurred

Question 18

what is fulfilling a market need

Answer 18

is the desire to fill a gap in the market where there is a demand for products but little to no supply

Question 19

what is fulfilling a social need

Answer 19

the desire to address a social issue in the local or wider community

Question 20

what are the 6 main sources of business opportunity

Answer 20

innovation, market opportunities, changing customer needs, research an development, technological development and global markets

Question 21

What is innovation

Answer 21

involves creating or improving products, processes, or services to solve a problem

Question 22

what is market opportunity

Answer 22

trends or desires that are not being met by existing businesses

Question 23

what is changing customer needs

Answer 23

transitions in what customers demand from businesses

Question 24

What is research and development

Answer 24

involves investigating and testing new product ideas and processes

Question 25

what are technological developments

Answer 25

advancements in machinery, computers and software

Question 26

what are the 2 types of goals

Answer 26

social and financial goals

Question 27

what does SMART stand for

Answer 27

Specific, Measurable, Attainable, Relevant and Time Bound

Question 28

Why are goals important

Answer 28

provide direction and purpose, giving employees and managers a clear understanding of what the business is trying to achieve

Question 29

how do businesses contribute to the economy

Answer 29

supporting employment levels. taxation, infrastructure, international trade and research and development

Question 30

How do businesses contribute to social wellbeing

Answer 30

they help raise living standards and implement strategies to assist the mental wellbeing of employees

Question 31

What is the internal environment

Answer 31

involves factors within a business that they have control over

Question 32

What are some examples of factors in the internal environment

Answer 32

business location, type of business and type of business model

Question 33

what are the types of business

Answer 33

sole trader, partnership, private limited company, public listed company, social enterprise and government business enterprise

Question 34

advantages of sole trader

Answer 34

least expensive and have full control

Question 35

advantages of partnership

Answer 35

greater range of expertise and minimal startup costs

Question 36

advantages of a private limited company

Answer 36

limited liability for shareholders and variety of expertise

Question 37

advantages of a public listed company

Answer 37

lots of expertise and shareholders have limited liability

Question 38

advantages of social enterprises

Answer 38

gets financial support from other business and purposeful work so more likely to stay at the business

Question 39

disadvantages of sole trader

Answer 39

can't take time off and hard to expand

Question 40

disadvantages of partnership

Answer 40

profit is shared and shared decision making

Question 41

disadvantages of private limited company

Answer 41

complex to establish and hard to change structures

Question 42

disadvantages of public listed company

Answer 42

expensive to set up and takes a lot of time to set up

Question 43

disadvantages of social enterprise

Answer 43

hard to make profits

Question 44

what are the 6 types of business models

Answer 44

online business, direct-to-customer business, bricks and mortar, franchise, importer, exporter

Question 45

what is an online business plus an example

Answer 45

a business model where goods and services are traded via the internet such as netflix

Question 46

what is an direct-to-customer business

Answer 46

is a business model where the businesses products are sold directly to customers

Question 47

what is an bricks-and-mortar business plus an example

Answer 47

a business model that has a physical store presence such as target

Question 48

what is an franchise business plus an example

Answer 48

is a business model that grants another person the right to operate under its name such as McDonalds

Question 49

what is an importer business

Answer 49

purchases goods and services from overseas and sells them in its home country

Question 50

what is an exporter business

Answer 50

produces good and services in its home country and sells them to overseas buyers

Question 51

what are the 3 types of resources

Answer 51

natural, labour and capital

Question 52

what are natural resources

Answer 52

raw materials from the environment that are used in the production of goods are services

Question 53

what are labour resources

Answer 53

people that provide the businesses with their skills and qualifications to perform business activities

Question 54

what are capital resources

Answer 54

the tools and machinery that are used to produce goods and services