Roles
Definition of a SME in Australia
Firms with fewer than 200 full-time equivalent employees and/or less than $10 million turnover
What are the main sources of finance for a business?
Debt finance and Equity finance
What does SWOT stand for?
Strengths, Weaknesses, Opportunities, Threats
What are the impacts of a boom on a business?
Increased outputs, Increased sales, Increased profits, Increased staffs
Name 2 internal influences on SMEs
products, location, resources, management and business culture stakeholders
State 3 roles of businesses
Profit, Employment, Incomes, Choice, Innovation, Entrepreneurship, Risk, Wealth, Quality of Life
Name 3 personal qualities that may influence a business
qualifications, skills, motivation, entrepreneurship, cultural background, gender
What is the difference between goals and objectives?
Goals are long-term while objectives are short to medium term
How can a business gain competitive advantages?
Price/Cost Strategy & Differentiation
Name 4 stages of a business life cycle
Establishment, Growth, Maturity and Post-Maturity
How can a SME contribute to the economy?
GDP, Employment, Balance of Payment, Innovations and Inventions
What is the company tax rate in Australia?
27.5% - 30%
How to calculate total cost?
Fixed Cost + Variable Cost
What is a business plan?
A written summary and evaluation of all the research and thinking a SME owner has done in the development of a business idea.
Name 3 factors influencing choice of legal structure
size, ownership, finance
What leads to failure of SMEs?
Financial Issues, Lack of planning, Failure to adapt, Lack of differentiation, Poor management
What are the 3 establishment options for a business?
new, existing, franchise
How to calculate breakeven point?
Fixed Cost/ (Selling Price - Variable Cost/Unit)
What are some technologies available for all businesses? (5)
Customer transaction, Communication equipment, Social media, Machinery and equipment, Logistics
Name 3 types of industry
Primary, Secondary, Tertiary, Quaternary, Quinary
What leads to success of SMEs?
Flexibility, Strong Reputation, Business Plan, Entrepreneur Abilities, Access to information
What are some professional advisors for a business? (4)
Accountants, Solicitors, Bank Managers and Management consultants
Name 4 steps of business planning process
Forecasting, Monitoring, Evaluating, Modifying
Common causes of over-extension in finance?
Overspending, Poor financial planning, Inaccurate forecasting
the process of converting a company's assets into cash, and using those funds to repay, as much as possible, the company's debts.