Markets & Environment
What is a domestic market?
A market where a business operates within the boundaries of one country.
What is a government grant?
Funding provided by the government for an eligible purpose, subject to conditions.
What is a mode of entry?
A business's planned strategy or process for delivering goods or services into a new market.
What is a niche market?
A small market segment with specific characteristics, needs or interests.
What is the largest planet in our Solar System?
Jupiter
What is globalisation or international business?
Business activity that occurs beyond the home country's borders and involves at least one other country.
What does IPO stand for?
Initial Public Offering.
What mode of entry involves selling goods produced in Australia to customers overseas?
Exporting
What does R&D stand for?
Research and development.
How many sides does a hexagon have?
Six
What does GDP stand for, and what does it measure?
Gross Domestic Product. It measures a country's economic output and helps indicate its economic strength.
What happens when a company completes an Initial Public Offering?
It offers shares to the public for the first time to raise capital.
What mode of entry allows another business to use intellectual property under agreed conditions?
Licensing
What is the purpose of research and development?
To develop new products or services, improve existing products or services, or improve business processes.
What is the capital city of New Zealand?
Wellington
Give two advantages of expanding within a domestic market.
Familiar laws and customs, lower transaction costs, cheaper postage and handling, established suppliers and logistics, or lower expansion risks.
What are dividends?
Payments made to shareholders, usually from a company's profits.
What mode of entry allows another person to operate a business using an established brand and business model?
Franchising.
What is innovation in a business context?
Applying new or improved ideas to products, processes, marketing or organisational methods.
What is the largest ocean on Earth?
The Pacific Ocean.
An Australian burger business opens another store in Brisbane. Is this domestic or global expansion?
Domestic expansion, because the business is expanding within Australia.
What is private equity?
Investment in a business by private investors, often in exchange for an ownership stake.
What is a strategic alliance?
An arrangement where businesses cooperate to achieve shared goals while remaining separate businesses.
Vertical growth focuses on which group of customers?
Existing customers.
What is the chemical symbol for gold?
Au.
Inflation, interest rates and employment levels are examples of which environmental factor?
Economic factors.
What are capital markets used for?
Raising finance through financial securities such as shares and bonds.
What is a joint venture?
An arrangement where two or more parties undertake a business activity together, sharing resources, risks and rewards.
Horizontal growth focuses on which group of customers?
According to the lesson, horizontal growth focuses on which group of customers?
How many minutes are there in 2.5 hours?
150 minutes.
A government introduces new laws that affect how a business operates overseas. Which environmental factor is involved?
Legal factors.
A business wants funding for an eligible sustainability project. Which financing option could it investigate?
A government grant.
What does offshoring mean?
Moving business activities or processes to another country.
How can developing a niche market help a small business compete against larger businesses?
It allows the business to specialise in a specific segment and meet needs that larger competitors may not serve as effectively.
Which group of mammals is capable of true sustained flight?
Bats.
Customers in another country have different values, traditions and lifestyles. Which environmental factor should the business consider?
Socio-cultural factors.
Identify one advantage and one disadvantage of raising money by selling shares to investors.
Advantage: raises capital for growth. Disadvantage: ownership and control may be diluted.
A business establishes a company overseas that it owns or controls. What is this company called?
A subsidiary.
Identify two ways research and development can help a business expand.
It can reduce costs, increase productivity, improve products, create new profit streams or help gain a competitive advantage. Any two.
What is the process called when plants use sunlight to convert light energy into chemical energy?
Photosynthesis
Why should a business research a country's economic conditions before expanding into that market?
To assess the strength and potential of the market and make informed decisions about international expansion.
Why should a business compare financing options before deciding how to fund its expansion?
Financing options differ in cost, risk, eligibility, repayment obligations and their effects on ownership and control.
What are the three broad groups of modes of entry, and give one example of each?
Movement of goods and services: exporting. Contractual agreements: franchising. Development of overseas operations: subsidiaries or foreign direct investment.
How can emerging technologies create opportunities for business growth?
They can disrupt industries, support diversification and expansion, create niche markets and help businesses maintain a competitive advantage.
In what year were the first modern Olympic Games held?
1896, in Athens, Greece.