1
Which of the below are not an overextension of finances?
a. Big value of loans
b. Used up the maximum amount of credit card
c. Constantly paying only minimum amount off the credit.
d. Budget the cash flow before making any purchase
d
Explain how government influences the business decision.
- Business need to follow the laws covering employment, health and safety
- Consumer protection
- Taxation
Explain the progress of liquidation.
After bankruptcy and receivership, the assets of the business will be sold and the recovered money will be used to pay creditors and shareholders.
What is a competitive advantage? Give any 2 examples
The unique edge that allow business to outperform its competitors.
- Lower price, unique branding, better quality, good service
In business cycle, what strategies can be used in growth phase?
Expansion, advertisement. employee training, professional consultant, product development, diversification, reduce waste etc
List 2 external influences that affect business decision, and explain them.
Competition; economic; financial; legal; politic etc
Explain the defiinition of stakeholder and give 2 examples.
Any people or group who will affect or be affected by business decision
- Employer, employee, nature, shareholder, customer supplier etc
List out 2 different types of cessation and give examples for each of them.
Voluntary cessation
- Retirement; resignation
Involuntary cessation
- Involuntary redundency; termination