Financial Records
What is the purpose of a revenue statement?
A revenue statement lists your sales and expenses over a set period of time. It tells you how much real profit the business is making or losing. It can help you develop sales targets and prices
What are the three establishment options a new business owner has?
New Business
Franchise
Purchase an existing business
What is ethical advertising? Define and provide one example of unethical advertising
Ethical advertising is creating marketing communications that are truthful, fair, respectful of human dignity, and avoid causing harm to consumers or society.
What is meant by the term "Value adding"?
Where the end product created is worth more than the individual parts it is made from.
For example a cake is worth more than the butter, sugar, eggs and flour used to make it
What is a brick and mortar business
"Brick and mortar" refers to businesses that have a physical presence, such as a storefront or office, as opposed to operating solely online.
What is the formula for calculating COGS (Cost of goods sold)
COGS= opening stock+Purchases-closing stock
List 1 advantage and one disadvantage of starting a business from scratch.
Disadvantages: High risk, Difficult without reputation, Majority of businesses fail, Time is needed to develop customer base.
In advertising terms what is meant by a "Call to action"?
When a piece of advertising directly tells the audience what to do, i.e buy here or call now
What is 2 example of an operations input
Labour
Supplies/materials
Facilities and equipment
Location, Location, Location
Place the following in the correct category: Current or non- current assets
Cash, Businesses Building, Oven in a commercial kitchen, Accounts Receivable (money owed to the business), Cupcakes at a bakery, Company Car
Current Assets: Things that are expected to be consumed or converted into cash in the next 12 months.
Non-current assets: Are not expected to be converted into cash in the next 12 months.
Current Assets: Cash, Accounts Receivable, Cupcakes
Non-current: Business building, Oven, Company Car
What is a public company?
A public company can have an unlimited number of shareholders. The shares for public companies are listed on the Australian Securities Exchange (ASX), and the general public may buy and sell shares in those companies.
Most public companies are large. Shareholders in public companies have limited liability.
A public company must have the word ‘Limited’, abbreviated to ‘Ltd’, after its name.
What are the 4 "P's" of Marketing
Product, Price, Place, Promotion
Provide an example of a tangible and intangible business input.
Tangible- any physical object or material that is used to produce the product
Intangible- non-physical objects, things such as the machine operator or the skill of the hairdresser
What was the slogan for the V energy drink commercial we studies?
The massive hit that improves you a bit
Calculate the Owners Equity
Assets= 634,728
Liabilities= 35,897
598,831
What is the difference between limited and unlimited liability?
Unlimited Liability means the owner could be forced to sell all assets to pay for the businesses debts
Limited Liability: means the business is seperate from the owner, the owner will not have to sell personal assets to pay the business' debts
Coca-Colas "Share a coke with" marketing campaign was a highly successful marketing campaign that allowed everyday people to be personally engaged with the product, but what country did it this campaign originate in?
Australia
What is business operations?
Operations refers to the business processes that involve transformation or, more generally, ‘production’. It applies within both manufacturing and service sectors.
It involves the transformation of inputs into outputs that the business can sell to make a profit.
In the episode of Gruen we watched. What was the first ad they reviewed?
The Telstra whistling ad
You have 2 minutes to calculate the Gross Profit, COGS and Net Profit from the revenue statement that will be shown on another screen.
Option an extra 200 points are available if you would like to play on hard mode
Gross Profit= 115,000
COGS= 114,000
Net Profit= 8,000
A group of five or more people may form an incorporated association in New South Wales by registering with NSW Fair Trading. Incorporated associations are small-scale, non- profit and non-commercial in nature. They can only conduct business in the state in which they are registered.
An incorporated association has its own legal identity separate from its members, which provides protection to members.
Small community groups such as sports clubs and art groups usually choose to register as incorporated associations. The incorporated association structure can be more effective for these types of organisations as they are generally simpler and more affordable than a company structure.
Put the following Marketing Activities in the correct marketing "P". (You must get all correct to get any points)
Publicity and Public relations
Pricing Strategies
Physical Distribution
Packaging
Publicity and Public relations= Promotion
Pricing Strategies= Price
Physical Distribution= Place
Packaging= Product
Describe what the operations process may look like for a car manufacturer
Car manufacturers will take raw materials such as metal and machine these parts into the required shapes. These machines are operated by people. Once the raw material has been correctly shaped and arranged and thus the "value added" the car becomes a finished product.
How did Volkswagen's 1959 VW Beatle ad change advertising in the United States?
It showed that honest advertising could be successful and challenged the idea that bigger more luxurious cars are better. The clear simple marketing made it appeal to all people.