Exam revision 1 Flashcards
(15 cards)
Define business concept (1 mark)
A business concept describes the core activities of the business, the specific features and value of the goods or services it provides, and the target market.
Distinguish between financial goals and social goals? (3 marks)
Financial goals refer to objectives related to the monetary performance of a business, such as increasing profit, sales, or market share. These goals focus on improving the business’s financial success and sustainability. In contrast, social goals relate to the business’s contribution to the wider community, such as supporting charities, reducing environmental impact, or improving social wellbeing. While financial goals benefit the business directly, social goals prioritise positive outcomes for society.
The Bread and Butter Project is planning to run a crowdfunding campaign to raise funds.
Discuss the suitability of their decision. (2 marks)
Outline two benefits of conducting market research before starting a new business (2 marks)
Conducting market research before starting a new business helps identify customer needs and preferences, allowing the business to develop products or services that better match market demand. It also reduces the risk of business failure by providing insights into competitors, pricing strategies, and market trends, enabling more informed decision-maki
Define market research? (1 mark)
market research refers to the process of systematically collecting, recording and analysing information concerning a specific market
compare retail shopping strips and shopping centres as possible locations for a new business? (2 marks)
Retail shopping strips and shopping centres both offer high foot traffic, but they differ in environment and costs. Shopping centres provide more secure, weather-protected environments and shared marketing, but often come with higher rent. In contrast, retail strips offer greater flexibility and lower rental costs but may have less consistent customer flow and fewer shared facilities.
outline how businesses make contributions to the economic wellbeing of a nation through employment? ( 2 marks)
Businesses employ large numbers of people, providing jobs for more than 11 million Australians. Employed Australians will use the wage they have earned to buy goods and services to meet their needs and wants, supporting business and opening up further opportunities for job creation.
Outline how businesses make contributions to the economic wellbeing of a nation through growth
Businesses play an important role in contributing to gross domestic product (GDP) by producing a wide range of goods and services.
Outline how businesses make contributions to the economic wellbeing of a nation through export earnings? (2 marks)
Businesses export products to overseas markets. Exporting products overseas contributes to Australia’s balance of payments (BOP). A favourable BOP exists when there are more payments coming in than going out. Exporting products creates jobs, boosts incomes and improves our living standards.
Define the term competitive advantage and identify two strategies that Bread and Butter Project could use to increase its competitive advantage? (3 marks)
Competitive advantage refers to a business’s ability to outperform competitors by offering greater value to customers through lower prices or unique features.
The Bread and Butter Project can improve its competitive advantage by emphasising its social enterprise model, which appeals to customers who want to support ethical businesses. It can also expand partnerships with cafes and supermarkets to increase brand awareness and reduce per-unit costs, giving it a pricing advantage over competitors.
Define the term ‘competitive advantage’ and identify two strategies that The Bread and Butter Project can use to improve its competitive advantage
(3 marks)
Competitive advantage refers to a business’s ability to outperform competitors by offering greater value to customers through lower prices or unique features.
The Bread and Butter Project can improve its competitive advantage by emphasising its social enterprise model, which appeals to customers who want to support ethical businesses. It can also expand partnerships with cafes and supermarkets to increase brand awareness and reduce per-unit costs, giving it a pricing advantage over competitors.
Justify the decision by Blue Berry Juice to change to a public listed company? (4 marks)
A public listed company is an incorporated business with many shareholders that is listed on the Australian Securities Exchange (ASX). The owners of Blue Berry Juice may wish to change from a partnership to a public listed company to pay company tax on revenue, which is usually taxed at a lower rate than personal income tax, which is what revenues for partnerships are taxed on, thus, to maximise Blue Berry Juice’s profits. Another advantage is Blue Berry Juice may receive increased funding from the Australian public purchasing company shares, which was impossible as a partnership. Hence, Blue Berry Juice could raise more money to facilitate the business’s expansion into overseas markets. Another advantage is public listed companies are incorporated with limited liability, meaning the owners of Blue Berry Juice are not personally responsible for all business debts, which is not the case for partnerships, hence benefits the owner
Explain one contribution that businesses make to improve the economic wellbeing of Australia? (2 marks)
Businesses contribute to Australia’s economic wellbeing by providing employment opportunities, which generate income for individuals. This income allows people to spend on goods and services, boosting consumer spending and helping stimulate economic growth.
Define the term private limited company and give one example of a distinguishing feature of a private limited company? (2 marks)
A private limited company is an incorporated business structure that is owned by up to 50 private shareholders and has limited liability.A distinguishing feature is that shares in a private limited company are not publicly traded on the stock exchange, meaning ownership is restricted to those invited by existing shareholders.
Identify two sections that can be found in a typical business plan? (2 marks)
Two sections commonly found in a business plan are the marketing plan and the financial plan.
