Semester 1 Exam

Question 1

Define the term entrepreneurship

Answer 1

The ability and willingness to take a risk and start a business with the goal of making a profit.

Question 2

Explain the four personal motivations for starting a business

Answer 2

To fill a social need, to fill a market need, to make a profit, to achieve personal and financial freedom.

Question 3

Describe the key characteristics of successful business managers and entrepreneurs

Answer 3

Risk taking, passion, vision, creativity.

Question 4

Sources of business opportunity

Answer 4

Innovation, market opportunities, changing customer needs, research and development, global markets.

Question 5

Define the term innovation

Answer 5

Either creating a new good, service or process or significantly improving an existing one.

Question 6

Define the term market

Answer 6

A group of potential customers.

Question 7

Identify and describe the 3 situations which open up market opportunities

Answer 7

Changing laws and regulations, changing demographics, advancements in technology.

Question 8

Explain 4 ways in which changing customer needs can create business opportunities

Answer 8

Demand for new products or services, improvement of existing products, shift to convenience and accessibility, changing demographics or preferences.

Question 9

Define the term research and development.

Answer 9

Investigating products and processes to develop new and better ways of doing things.

Question 10

Define ‘global markets’

Answer 10

Goods and services exchanged between businesses and customers across the globe.

Question 11

Outline 2 advantages of businesses seeking global markets.

Answer 11

More potential customers, less dependence on local markets.

Question 12

Describe the steps of market research (IGA)

Answer 12

Identify opportunities, gather information, analyse the information.

Question 13

Define the term ‘feasibility study’.

Answer 13

An analysis before producing a product to see whether it is a reliable source of profit.

Question 14

Identify the process of conducting a feasibility study

Answer 14

A common process is seeing if anyone else has tried the same business idea.

Question 15

Define communication

Answer 15

The transmission of information to one or more recipients in a way that the recipient’s understanding of the message is as close as possible to the meaning that the sender intended.

Question 16

Define delegation

Answer 16

The ability to hand out work to employees.

Question 17

Define decision making (steps of)

Answer 17

The qualities involved in making decisions, setting objectives, solving problems and taking opportunities.

Question 18

Define interpersonal

Answer 18

The ability to form positive relationships and connections with others (employers, employees, customers).

Question 19

Describe the steps of planning (SADIM)

Answer 19

Set the objective, analyse the market, develop alternative strategies, implement a strategy, monitor a strategy.

Question 20

Name the 6 business types

Answer 20

Sole trader, partnership, private limited company, public-listed company, social enterprise, GBEs.

Question 21

Provide contemporary business examples of private, public, social enterprises and GBEs

Answer 21

Private – Cotton on, Public – Woolworths, Social enterprise – Thankyou, GBE – Aus Post.

Question 22

Explain limited liability and unlimited liability

Answer 22

Limited - if the business has debts or is sued, the owner’s personal assets are protected. Unlimited - if the business can’t pay its debts, the owner’s personal assets can be used to repay them.

Question 23

Define incorporation

Answer 23

The legal process of forming a company or business as a separate legal entity from its owners.

Question 24

Define and discuss business models with examples

Answer 24

Bricks and mortar – Bunnings, Online – Spotify, Franchise - KFC.

Question 25

Describe the costs and benefits of purchasing an existing company or establishing a new business.

Answer 25

Purchasing an Existing Company: Benefit - established customer base; Cost - expensive to buy. Establishing a New Business: Benefit - full control; Cost - time to build customers.

Question 26

Define the term 'goodwill'

Answer 26

Goodwill is the established reputation of a business regarded as an asset and calculated as part of its value when it is sold.

Question 27

Describe the importance of business location and factors contributing to a successful location.

Answer 27

A successful business location will be placed in a high foot traffic area while being close to residential areas and other businesses.

Question 28

Define CSR.

Answer 28

When a business takes responsibility for its impact on society and the environment, going beyond just making a profit.

Question 29

Advantage and disadvantage of businesses adopting CSR initiatives.

Answer 29

Advantage – customer satisfaction and boosted employee morale; Disadvantage – expensive.

Question 30

Describe the terms 'effectiveness' and 'efficiency' in relation to businesses

Answer 30

Effectiveness – the ability of a business to achieve its objectives; Efficiency – a measure of a business’s productivity.

Question 31

Define local government regulations

Answer 31

Rules made by local councils to manage how businesses and properties operate in their area.

Question 32

Define employment regulations

Answer 32

Laws that protect the rights of employees and employers in the workplace, ensuring fair, safe, and respectful environments.

Question 33

Define trade practices and consumer protection laws

Answer 33

Legal rules designed to ensure fair business conduct and protect the rights of consumers.

Question 34

Define environmental protection regulations

Answer 34

Laws and rules made by the government to protect the natural environment.

Question 35

Define societal attitudes and behaviours

Answer 35

The values, beliefs, lifestyles, and habits of people in a community or society.

Question 36

Describe the key points of the business cycle

Answer 36

Expansion is the uplift in economy; a boom is the peak; contraction is the downfall; a recession is the lowest point.

Question 37

Describe inflation and unemployment

Answer 37

Inflation is the cost of items increasing over time; unemployment is the act of looking for a job without currently having one.

Question 38

Explain how interest rate movements can impact a business

Answer 38

A fall in interest rates encourages purchases; a rise discourages them due to the need to save and pay off loans.

Question 39

Describe and distinguish between different types of taxes

Answer 39

Company tax - 30% flat rate; Income tax - varies based on income; GST - 10% on goods/services; Capital gains tax - included in income tax; Payroll tax - paid on wages exceeding a threshold.

Question 40

Define and discuss ways businesses can use AI, APL, CAM and CAD

Answer 40

AI - software systems that learn like humans; APL - production line placing one piece at a time; CAM - software aiding manufacturing; CAD - software for digital design.

Question 41

Evaluate how a business can use technology in relation to effectiveness and efficiency

Answer 41

Technology helps achieve business objectives (effectiveness) and improves productivity (efficiency).

Question 42

Define overseas competitors and overseas markets

Answer 42

Overseas markets - markets for products in other countries; overseas competitors - companies in the same line of work in other countries.

Question 43

Define and discuss 'offshoring labour'

Answer 43

The act of moving a part of the business to another country to pay less wages, e.g., Indian call center.

Question 44

Define exchange rates and their impact

Answer 44

The value of one currency compared to another; depreciation benefits exporters, appreciation benefits importers.

Question 45

Define the term 'intellectual property'

Answer 45

Creations of the mind that are legally protected so others can't use them without permission.

Question 46

Outline the 3 ways intellectual property can be protected

Answer 46

Patents, copyrights, and trademarks.