Nature of Business
What is the main purpose of a business?
To produce goods and services to satisfy consumer needs and wants.
What are the four main functions of management?
Planning, organising, leading, and controlling.
What is a business plan?
A written document outlining the goals, strategies, and operations of a business.
Which company is the world’s largest employer, with over 2 million employees globally?
A. Walmart
B. Amazon
C. McDonald’s
D. State Grid (China)
A. Walmart
What are the four main types of industries in Australia’s economy?
Primary, secondary, tertiary, and quaternary/quinary.
What is the difference between autocratic and democratic leadership styles?
Autocratic = manager makes all decisions; democratic = involves employees in decision-making.
Name one advantage of preparing a business plan.
Provides direction, reduces risk, and assists in obtaining finance.
Which fast-food chain has the largest number of stores worldwide?
A. Subway
B. McDonald’s
C. Starbucks
D. KFC
A. Subway
Explain how the size of a business can be classified.
By number of employees, market share, and amount of capital invested (small, medium, large).
What is the main focus of classical management theory?
Task efficiency, hierarchy, and control over workers.
What are two common sources of finance for a new small business?
Owner’s equity and debt finance (loans/overdrafts).
Which fashion trend from the early 2000s made a comeback in 2023–2024?
A. Skinny jeans
B. Low-rise jeans and Y2K style
C. Shoulder pads
D. Platform sneakers
B. Low-rise jeans and Y2K style
How do external influences such as economic and technological factors affect business operations?
A. They only impact small businesses, not large corporations
B. They shape demand, production methods, and competitiveness
C. They ensure profits regardless of consumer spending
D. They prevent businesses from adapting to change
B. They shape demand, production methods, and competitiveness
Explain how a contingency approach to management works.
Managers adapt their style and strategies to suit changing situations and environments.
Why is a SWOT analysis used in the planning process?
To identify a business’s internal strengths and weaknesses, and external opportunities and threats.
Amazon was originally started as a business selling what?
A. Electronics
B. Books
C. Clothing
D. Computer parts
B. Books
What is one key difference between a sole trader and a partnership?
A sole trader has one owner with unlimited liability, while a partnership has 2–20 owners who also have unlimited liability.
How can effective management contribute to competitive advantage?
By aligning resources, motivating staff, and adapting strategies to achieve efficiency, innovation, and customer satisfaction, which differentiates the business.
How can failure to plan lead to business failure?
A. Businesses always succeed if demand exists
B. Lack of planning causes mismanagement, poor risk assessment, and missed opportunities
C. Planning guarantees success no matter the conditions
D. Banks will automatically fund businesses without a plan
B. Lack of planning causes mismanagement, poor risk assessment, and missed opportunities
Which company launched the first widely used AI chatbot, ChatGPT, in 2022?
OpenAI