Role of business
A business aims to produce what for consumers?
Products/Services
What are the 4 x criteria used to classify a type of business.
Size, geographic spread, industry, legal structure.
What two types of influences can influence a business?
Internal and external.
What are the four stages of the business life cycle?
Establishment, growth, maturity and post-maturity.
What are the different roles of a business?
To make profit, provide employment, income, choice, innovation, facilitate entrepreneurship, generate wealth and enhance quality of life.
Which size business has less than 5 employees?
Micro business.
Give 3 x examples of external influences.
Economic, financial, geographic, social, legal, political, institutional, technological, competitive situation and markets.
Which phase of the lifecycle would see high costs, less customers, more financial risk and increased marketing?
Establishment
What would you say are the main roles of Woolworths as a business? Refer to the syllabus dot points.
The business would want to generate a profit, however, the nature of the business is to enhance quality of life (provide food and necessities), provide choice and offer employment.
Jim’s Mowing services is an example of what type of business according to geographical spread?
National
Give 3 x examples of internal influences.
Products, location, resources, management and business culture.
Which phase would have a strategy where diversification of products is introduced to try and increase a declining customer base and profits?
Post-maturity: renewal
What would you say are the roles of McDonalds as a business? Refer to syllabus.
To provide choice, offer employment, generate profit.
Define limited and unlimited liability. What does this mean in a business sense?
Limited- separate legal entity, business assets used as liability.
Unlimited- owner and business are one entity. All personal assets are possible liabilities.
What is someone referred to as if they are associated with or have an interest in a business?
Stakeholder
What phase would see strategies including modified and improved releases of existing products, diversification of products to generate more consumer interest and working towards building that competitive advantage?
Growth
Explain the importance of business for local and national economies.
- increases local spending
- increases finance being injected back into local economy
- provides local employment: enhances wellbeing, prevents crime and improves social aspects
- increases a country Gross Domestic Product: that is the value of all products/services produced
- enhances national economy through increased competition, more spending
- increase in business numbers means increase in employees which would generate more tax to help with government run organisations such as schools, hospitals, defence, housing etc.
Define all 5 industries and give an example of a business in each.
Primary, secondary, tertiary, quaternary and quinary.
The Post Office, NSW transport, NBN etc are all examples of business under which legal structure?
Government enterprise
What is meant by liquidation, voluntary and involuntary cessation?
Liquidation is where a businesses assets are all collected and distributed as a business closes.
Voluntary cessation- the purposeful decision to close a business.
Involuntary cessation- when a business has to close/forced to close due to circumstances.