Business Structures & Ownership
What type of business is owned and operated by one person and has unlimited liability?
Sole tradership.
What is the first step in strategic planning?
Determine position (assess where the business currently stands).
What is the purpose of a vision statement?
To describe where a business wants to be in the future.
What is the key advantage of a partnership?
Shared responsibilities and financial resources.
What are the four main steps in strategic planning?
Determine position, develop a strategy, implement a plan, monitor and review.
How is a mission statement different from a vision statement?
A mission statement explains why the business exists and what it does now.
What is the difference between a private and a public company?
A private company is restricted to 50 shareholders, while a public company can sell shares on the ASX.
Why is strategic planning important for businesses?
It helps set clear goals, track progress, and ensure long-term success.
How does a mission statement help a business?
It defines what the business does and how it serves its stakeholders.
Why do businesses need to consider ownership structures before starting?
It affects control, liability, and financial responsibilities.
What type of planning tool helps businesses assess internal and external factors?
SWOT analysis.
What are the four steps in strategic planning?
Determine position, develop a strategy, implement the plan, monitor and review.
In a public company, who owns the business?
Shareholders.
Give an example of a strategic goal a business might set.
Expanding into a new market within the next five years.
What is the difference between goals and objectives in strategic planning?
Goals are broad, long-term outcomes, while objectives are specific, measurable steps to achieve goals.