Business Life Cycle
First stage of business life cycle
Seed
What is the easiest type of business to start?
Sole trader
Which business function involves staff?
Human Resource Mangement
Main goal of a business
Profitability
Name an analysis tool used by businesses.
SWOT, PESTLE/STEEPLE
Strategy - reduce costs of production to remain competitive
What stage is this?
Maturity
Which business structure do you associate PTY LTD with?
Private Company
Which business function involves revenue and expenses?
Financial
The goal where a business wishes to control most of the market
Market Share
What is the formula for Break Even point.
Revenue = Expenses
Start up
What forms of business ownership have unlimited liability?
Sole trader, partnership
Increasing the production of a product or it's quality relates to which business function
Operations
To provide professional development opportunities - this is a goal for
Employment
What financial objective is linked to the financial stability of a business?
Solvency
Name the final stage and the number of options
Post maturity and 3
Maximum number of partners in a partnership
20
Advertising is not the only part of this business function
Marketing
To be more water efficient to reduce costs -
This is a goal for
Sustainability
What is a cash budget?
Cash budget is a projection/estimate of expected receipts and payments of a business for a period of time.
The longest stage of the business life cycle
Maturity stage
The most complex form of business ownership
Company
What business function is considered the life blood of the business?
Finance function
Identify the 3 key goals of a business.
Profitability, Market Share, Growth
What is the difference between equity finance and debt finance?
Debt finance is funds borrowed from external parties and Equity finance is funds sourced for a share of ownership.