Exam revision 3 Flashcards
(9 cards)
Identify four reasons of starting a buieness?
personal independence, social need, market need and financial independence.
personal independence
The capacity to be in control of decisions that affect one’s everyday actions or activities.
social need
The production and/or selling of goods and services for the purpose of making the world (or the community) a better place.
market need
The goods or services that customers require that are not readily available.
financial independence
The capacity to support a lifestyle without having to be employed or be dependent on others.
Outline what determines the success or failure of a business? (2 marks)
The success or failure of a business is largely determined by the owner’s abilities, resources, enthusiasm, initiative, level of management expertise, decision-making skills and motivation.
Identify one benefit and one limitation of owning a business?
Being your own boss independence
Increasing personal wealth.
Risk of failure
High levels of responsibility
Global markets can present a business opportunity for Australian entrepreneurs.
Question 1
a. Identify three advantages afforded by global markets.
the opportunity to grow and further expand a business
reduced dependence on local markets
extended life cycle of new and existing products through the discovery of new markets to sell them in
minimising the effects of fluctuations in markets caused by changes in season or demand by moving into markets with different patterns.
Explain one thing a business owner should consider before making the decision to sell products in other countries.
whether or not their business idea would work in an overseas country. He or she should contemplate if the people of the targeted country are familiar with the product.
It is also important that the potential business owner thinks about how comfortable they would be in selling products overseas.
