Internal Environment
What is the major relationship between the internal environment and the external environment (remember the graph I drew on the board)?
The external environment impacts the internal environment more than the other way around
Definition of External Environment
Factors over which the business has little control. It may be further divided into two categories: operating and macro
A sole trader is the most expensive to start up
True or false
False
What is the definition of an online business
A business which primarily sells its goods or services online
When you purchase a business, you buy a business that has already been operating. True or false
True
Internal environment reflects factors which the business:
Can or cannot control?
Can control
Name 2 stakeholders of the operating environment
Customers, Competitors, Suppliers, Special Interest Groups
What does unlimited liability mean
Business owners are personally responsible for all debts in the business
Tell me one pro and one con of being a franchisee
Pro: may already have systems in place
Con: can only take a percentage of the profit
Outline one pro and one con of purchasing a business
Up to discretion
Define the internal environment
Factors over which the business has some degree of control
The external environment is made up of 2 components. What are they?
Macro environment and the operating environment
What are the minimum and maximum amount of shareholders in a private limited company
1 and 50
An example of a brick and mortar business is..?
Mecca, cotton on, any store with a physical presence
Outline one pro and one con of establishing your own business
Answer up to discretion
Name 2 stakeholders of the internal environment
Employees, Managers, Location, Legal Business Structure
2 Factors of the macro environment
Legal and government regulations, Societal attitudes and behaviour, economic conditions, technological considerations, global considerations, corporate social responsibility considerations
What is the main difference between private limited company and public listed company
Shares are online and available to be bought by the public for public listed
When there is an importer business, what is a major downside to having this?
Loss of jobs in Australia, tariffs making it more expensive
True or false: Steve Jobs bought Apple
False
Name 2 factors in which the internal environment has in which businesses have some control over
Employees, managers, management style, corporate culture and company policies.
The internal environment does not affect the external environment
True or False
False, the internal environment can affect the external environment
Daily Double:
How does a social enterprise mask itself as a business that still makes a profit
By making itself a sole trader, a partnership or a private limited company
What do Australia export the most in business?
Mining, coal
What is goodwill?
The monetary attachment to the reputation of the business