Role of Business
This is the main goal of most businesses and represents financial gain after expense.
Profit
The simplest legal structure for a business, owned by one person.
Sole trader.
Name one internal influence on a business.
Product, location, resources, management, business culture.
The first stage of the business life cycle.
Establishment.
An example of an Australian business that has expanded globally.
Qantas, etc.
Name two non-financial roles of a business in society.
Employment and innovation.
A business that operates in multiple countries.
Global business (transnational corporation).
This external influence includes trends in technology and automation.
Technological influence.
This is a common challenge during the growth stage.
Managing increased demand and expanding operations.
One global company that expanded into Australia.
McDonald's, IKEA, Amazon
This refers to the ability of a business to satisfy consumer needs and wants.
Providing choice.
Name three ways to classify businesses.
Size, legal structure, industry sector, geographical spread.
Explain the difference between internal and external influences.
internal = within the business’s control; external = outside factors that impact the business?
This stage may involve restructuring or innovation to avoid decline.
Post-maturity.
Name one problem stakeholders face when a business goes into liquidation.
Loss of income, unpaid wages, debt.
This term refers to the improvement in material and non-material living standards.
Quality of life.
This industry sector includes services such as IT, finance, and real estate.
Quarternary sector.
This external factor includes laws and government regulations.
Legal environment.
Define voluntary and involuntary cessation.
Voluntary = owner choice vs.
forced closure (e.g., due to bankruptcy)?
Explain how social trends influence business decisions.
By changing consumer preferences, e.g. eco-conscious products?
Explain how entrepreneurship contributes to business activity.
By: introducing new ideas, taking risks, driving innovation and growth.
Explain two reasons a business might choose a private company structure.
Limit liability or maintain control over ownership.
Identify three stakeholders affected when a business goes into liquidation.
Employees, creditors, owners, shareholders.
Recommend a strategy for a business in the maturity stage to remain competitive.
Innovation, improving efficiency, entering new markets.
How have external influences contributed to the growth of the tertiary sector in Australia?
Economic growth, rising incomes, and population shifts increasing demand for services.