Nature of Business
Define business
A coordinated effort by individuals to combine resources in order to produce goods and services that satisfy consumer needs and wants for the ultimate goal of making a profit.
Definition of Management:
the process of coordinating a businesses' resources to achieve their goals.
what is a Small to Medium enterprise (SME)
a firm with less than 200 full-time employees and/or less than $10 million in total
Assets = ?
Liabilities + Owners Equity
4 Ps of Marketing
Product, Price, Place, Promotion
What is recruitment?
Attracting and selecting people for a job
What is the largest planet in our solar system?
Jupiter
How many sides does a hexagon have?
Six
List the types of classification of businesses there are.
- Classification by Size
- Classification by Geographical spread
- classification by Industry
- Classification by Legal structure
what are the 9 skills of management?
Interpersonal skills, communication skills, strategic thinking skills, Vision skills, problem-solving skills, decision-making skills, flexibility, adapting to change, reconciling the conflicting interests of stakeholders.
What role do SME's play for a country
- employment
- produce goods and services
- contribute to the economy (account for 20% of money spent
COGS = ?
= Opening Stock + Purchases - Closing Stock
Gross Profit = Sales Revenue - COGS
fixed costs
The costs that do not change regardless of how much a business sells.
What government level in Australia primarily handles business regulation?
State Government
In what year did the Sydney Opera House officially open?
1973
What gas do humans breathe in that is essential for survival?
Oxygen
What are the main factors influencing choice of legal structure of a business. (3 Answers)
- Size
- ownership
- finance
What are the approaches to management? & provide 2-3 words to describe the structure of that approach.
Classical / Scientific Approach (planning, organizing, controlling)
Behavioral approach (leading, motivating, communicating)
Contingency Approach (adapting to changing circumstances)
List at least 4 reasons why a business might fail
- poor finance management & performance, unrealistic expectations, ineffective leadership, inadequate market research, wrong strategies, insufficient capital.
Owners Equity?
Assets - Liabilities = OE
Liabilities
This is the term for the total amount a business owes to others.
What is the main difference between a sole trader and a partnership?
The number of owners? (1 vs 2–20)
Who wrote the play Romeo and Juliet?
Shakespeare
Who painted the Mona Lisa?
Da Vinci
What are the external and internal influences on a business?
External - Factors outside the control of the business (economic, financial, geographic, social, legal, political, institutional, technological, competitive situation, markets)
Internal - Factors the business can control. (Products, location, resources, management, business culture)
what are the four key business functions and what do they involve? Choose your words carefully!
Operations, Marketing, Finance, HR
What are the sources of finance? (debt and equity)
Debt: overdraft, commercial bills, factoring, mortgage, leasing, debentures, unsecured notes
Equity: capital, retained profits, family friends, Private investors, shares.
Net Profit = ?
NP = Gross profit - Total Expenses
The amount of profit remaining after deducting the cost of goods sold.
Gross Profit
Which business life cycle stage involves the highest risk of failure?
Establishment
What is the chemical symbol for gold?
AU
What is the name of the fictional country in Black Panther?
Wakanda
List the four stages of the business life cycle AND 2 associated characteristics
E-G-M-PM
Establishment, Growth, Maturity, Post-maturity
E - cash flow shortages, marketing strategies, survival
G - experience, growth and demand strain, labor shortages
M - survival, cost control, staff motivation, R&D
P- difficulty obtaining money, suppliers asking for cash payments due to high risk, profit decline, low staff morale
How do you manage change effectively?
- identify a need for change
- Business Information systems
- Setting achievable goals
- Resistance to change
what are the downsides of purchasing an already established business?
(at least 4 reasons)
- Inherit immediate problems
- may lose business reputation due to new ownership
- Employees may be resistant to change
- Businesses may be overpriced
- difficulty of assessing goodwill
Break-Even Point
Total fixed costs / Unit price - variable costs per unit
Example: A business has:
Fixed Costs = $10,000
Selling Price per Unit = $50
Variable Cost per Unit = $30
BEP=10,000 / 50−30 =
10,000 / 20
=500 units
So the business must sell 500 units to break even.
transformation process
The process of turning inputs into outputs
Explain the role of HR in managing workplace conflict.
Mediates disputes, ensures fairness, and maintains productivity
What is the capital city of Canada?
Ottawa
In what year did World War II end?
1945