Nature of Business
What are the four key business functions?
Operations, marketing, human resources, finance
What is the formula for calculating net profit?
Gross Profit - Expenses
Price, place, product, promotion
Name the 3 major management approaches
Classical
Behavioural
Contingency
What are the three establishment options for starting an SME?
New, established, franchise
Name 2 features of a monopolistic competition
Most common market type
Differentiation by packaging, branding, advertising, quality
Large number of buyers and sellers
Name 2 disadvantages of operating as a sole trader
Harder to obtain finance
Time consuming
Tax rate can be high if exceeding threshold
What are the three key elements of the production process?
Inputs, Processes, Outputs
Which management approach focuses on the social and emotional need of employees?
Behaviorual
What is the break even quantity formula?
BEQ = TFC / (P - VC)
What are three external influences in the business environment
economic, financial, geographic, social, legal, political, institutional, technological, competitive situation, markets
Name 3 internal influences on the business enviornment
products, location, resources, management and business culture
What are the four business functions a manager is responsible for coordinating?
Marketing, Human Resources, Finance, Operations
This approach acknowledges the impact of changes in the business environment and enables businesses to be more flexible in reacting to change
Contingency
High levels of imports, high levels of spending, increasing interest rates are all features of which economic phase?
Boom
What are the four stages in a business lifecycle
Establishment
Growth
Maturity
Post Maturity
Name 2 critical issues in business success/failure
• importance of a business plan • management – staffing and teams • trend analysis • identifying and sustaining competitive advantage • avoiding over-extension of finance and other resources • using technology • economic conditions
Name the 3 main financial statements used by a business
Cash Flow Statement
Income Statement
Balance Sheet
Which management approach emerged as a result of the Industrial Revolution
Classical
Name 3 disadvantages of buying a franchise
Costly to establish
Ongoing fees to franchisor
Less independence and flexibility
No control over product range
Competition may exist between franchises
May need approval to sell
Arrangement may be for a limited time
Name 3 industry sectors in which a business may be classified
Quaternary; Tertiary; Secondary; Primary; Quinary
primary, secondary, tertiary, quaternary, quinary
Name 2 examples of voluntary separation from a business
Retirement; resignation; voluntary redundancy
Planning, organising, controlling are the key functions of which management approach?
Classical
Name 3 federal taxes a business may be liable for
Income Tax
GST
Capital Gains Tax
Fringe Benefits Tax
PAYG Tax