Show:
Types of Economy & International Trade (Ch 9-10)
Business Organization Types (Ch 11-13)
Growth & Multinational Businesses (Ch 14-15)
Internal Organization of a Business (Ch 16)
Communication
(Ch 17-18)
100
Name the type of economy that is based on the freedom to buy and sell goods and services
Market Economy
100
Name one disadvantage of a partnership
Disadvantages: You may argue or disagree, you need to share the money in the business
100
Name one positive result of a business growing.
They'll be able to make more money; they can expand and create more products; they can have access to new markets and customers
100
Name 3 different levels of jobs that can be found in a business hierarchy.
Owner/CEO, Manager, Line employee/worker
100
Why is communication important in a company?
So that day-to-day operations can take place; so everyone knows what is expected of them; so that products can be sold quickly and effectively
200
Name the TWO types of economies where one is controlled by the government, and the other is partly controlled by the government and partly controlled by the people.
Command and Mixed
200
Give examples of 2 rules that may be found in a Deed of Partnership.
Example answers: Who has what responsibility, how profits will be divided up, How much will be invested at the beginning
200
Explain what makes a company a "multinational" business.
The business has physical locations in more than one country.
200
What is the difference between a tall hierarchy and a flat hierarchy?
Tall: Several levels; Each person is only responsible for a few people under them (narrow span of control) Flat: Fewer levels; Each person is responsible for several people under them (broad span of control)
200
What is the difference between internal and external communication for a business?
Internal: Communication with people who work for your business (managers, employees) External: Communication with people outside of the business (customers, suppliers)
300
Describe at least 2 negative things that happen when a company is a monopoly.
Examples of answers: they control the market for that product; consumers don't have enough choice; prices can be increased
300
What is the difference between limited and unlimited liability?
When one has limited liability, they are not solely financially responsible when something goes wrong at their company (they will not lose everything). When one has unlimited liability, they are held fully responsible to pay damages when something bad happens to the business.
300
Name 2 reasons why a business would want to become a multinational company.
Examples of answers: More staff; better customer service; cuts costs by producing items overseas; More efficient; Access to a global market (more customers)
300
Name 1 advantage and 1 disadvantage to delegation in a company.
Advantages: Owner/manager not as stressed; gives employee opportunity to work hard and prove themselves Disadvantages: Employee may do so well that employer feels their job is threatened; employee may not do the job correctly or the way the manager expects
300
Give one specific example of when you would use formal communication in a business, and one specific example of when you would use informal communication in a business.
Formal: Speaking with one's boss; a superior; a customer Informal: Speaking with your co-workers
400
What is the difference between an oligopoly and perfect competition?
An oligopoly is where the market is controlled by just a few large suppliers, while in perfect competition there are many competitors (consumers have a large amount of choice).
400
Name TWO good things about becoming a private limited company.
Example answers: Have limited liability now; your business is incorporated (your business now legally exists separate from you personally); You'll have more funding
400
Name 2 ways a business can grow internally, and 2 ways a business can grow externally
Internal: Hire new employees; add on to their existing building; create new products; advertise online External: Merge with another business; Takeover
400
Explain the difference between a broad and narrow span of control, and give an example of a type a business where each would work best.
Broad: One is responsible for several employees underneath each position; best in a company where communication can happen quickly and easily Narrow: Each person is only responsible for a few people underneath them; best in a company that has several different departments and communication between levels is on a more personal basis
400
Explain the difference between one-way and two-way communication, and name a barrier to communication for each.
One-way: An immediate reply is not received or expected; barrier is that people feel like they don't have enough feedback opportunities; may be misunderstood Two-way: There is interaction between a sender and receiver; barrier is that there may be a bad relationship between the two; technology may be a barrier
500
Name and explain 3 different types of trade barriers that a government can put in place (be specific with your vocabulary!)
Examples of answers: subsidies (gov't gives money to their own businesses), quotas (limits on how much can be imported), tariffs (taxes on imports), exchange controls (restrictions set by gov't on what can be bought/sold)
500
Name TWO positives and TWO negatives associated with your business becoming a franchise.
Positives: All advertising and materials are provided (don't need to invent new food/products/advertisements); You benefit from the business already being well-known Negatives: There is not very much choice/freedom; the success of the franchise is ultimately the franchisee's responsibility; must pay franchise fees
500
Name 2 of the 3 main problems with a business rapidly growing, and give an example or explanation of each one.
Financial (lots of extra money is required quickly to allow for growth), Operational (you need to hire more employees fast, purchase more machines or space), Managerial (will have more employees to manage - possibly in separate locations)
500
Give 1 responsibility that each of the following people have in a company: Owner Manager Employee
Owner: Comes up with ideas that will affect the entire running of the company; responsible for the managers; looks toward the future to create new ideas/opportunities Manager: Responsible for employees and day-to-day operations; Assigns jobs to employees Employee: Answers to their manager; runs the machines or creates the product firsthand
500
Name 2 different methods that can be used for internal communication at a company, and state a positive and negative of each method.
Phone - quick communication (positive), not face-to-face or in person (negative) Meeting - face-to-face (positive), needs to be scheduled (negative), may not allow for feedback (negative) Email - very quick (positive), may be taken the wrong way or sent to the wrong people (negative) Letter - personal (positive), postage (negative), may take several days (negative)