The Internal Environment

Question 1

Internal Environment

Answer 1

Involves factors within a business that a business HAS control over

Question 2

External Environment

Answer 2

Involves surrounding factors that can impact a business which they have MINIMAL control over.

Question 3

Operating Factors

Answer 3

External factors impacting a business that they have SOME control over

Question 4

Macro Factors

Answer 4

Social, legal, technological, global & economic conditions that a business OPERATES IN and has NO CONTROL over

Question 5

Unincorporated Business

Answer 5

When the business owner and the business are viewed as the same legal entity (Unlimited Liablity). Eg: Sole Traders & Partnerships

Question 6

Sole Trader

Answer 6

A business structure that is owned & operated by ONE person. They make all business contributions & decisions.

Question 7

Partnership

Answer 7

A business structure that is owned by 2 - 20 owners. They have a partnership agreement.

Question 8

Incorporated Business

Answer 8

A business structure being established as a separate legal entity from the owners. Eg: Privately & Publicly owned companies

Question 9

Private Limited Company (Pty Ltd)

Answer 9

An incorporated business structure that has at least 1 director and a max of 50 shareholders

Question 10

Public Listed Company (Ltd)

Answer 10

An incorporated business that has an unlimited number of shareholders and sells its shares on the ASX

Question 11

Social Enterprise

Answer 11

A business that aims to fulfil a community or environment need by selling goods or services. In VIC they must contribute atleast 50% of profits to the cause.

(they AREN’T a legal structure)

Question 12

Government Business Enterprise

Answer 12

GBE is a business owned & operated by the government. Its purpose it to cater to public needs

Question 13

Brick & Mortar Business

Answer 13

The traditional business model that is based on a store with a physical presence. (Shopping centres & strips)

There’s also Bricks & Clicks

Question 14

Direct To Consumer Business (DTC)

Answer 14

DTC is when a business’s products are sold directly to consumers with no intermediaries involved.

Question 15

Online Business

Answer 15

When goods and services are traded via the internet.

Question 16

Franchise

Answer 16

A business model granting another person the right to operate under its name, use its business systems and sell its goods & services.

Question 17

Franchisor

Answer 17

Original owner granting the rights

Question 18

Franchisee

Answer 18

Individual buying those rights

Question 19

Importer

Answer 19

Someone who purchases goods & services from overseas and sells them in their home country.

Question 20

Exporter

Answer 20

Someone who produces goods & services in their home country, selling them to overseas buyers.

Question 21

Purchasing An Existing Business

Answer 21

Buying a business that’s already set up & operating. Everything associate with the business is included in the purchase.

Question 22

Establishing A New Business

Answer 22

Reasons:
- Filling a gap in the market
- Development of new goods & services

Question 23

Resources

Answer 23

Items required by a business to produce its goods & services

Question 24

Natural Resources

Answer 24

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

Question 25

Labor Resources

Answer 25

People who provide the business with their skills and qualifications to conduct business activities.

Question 26

Capital Resources

Answer 26

Man-made goods used in the production of goods and services, they help produce products faster and more high quality

Question 27

Business Locations

Answer 27

A physical or non-physical place where a business operates from. Eg: Shopping centre, shopping strip, home business & online presence

Question 28

Equity Capital

Answer 28

Money contributed to a business by an investor in exchange for partial ownership. They don't need to be repaid.

Question 29

Types of Equity Capital

Answer 29

Personal - Owner contributing their own funds Private - Business selling its share to selected individual approved by board of directors Public - Business selling its shares to the general public

Question 30

Grant

Answer 30

Money provided by a government or another organisation for a particular reason

Question 31

Debt Capital

Answer 31

Money that has been lent to a business by an external source that must be paid back over time with interest.

Question 32

Overdraft Facilities

Answer 32

Agreements between banks & businesses or individuals, that allow a bank account to be withdrawn below zero.

Question 33

Business Support Services

Answer 33

BSS are the specialised people, facilities, or amenities that aim to help businesses successfully operate.

Question 34

Legal Support Services