The Role of Business
What is the acronym for the role of business?
WIPES ICE Q
What is the acronym for business classification?
GILS
What is the acronym for external and internal influences.
MC PIGS LEFT
PLMBR
What are the 4 stages of the business life cycle?
Establishment
Growth
Maturity
Post Maturity
XYZ Pharmaceuticals Ltd sells manufactures medication for Parkinson's Disease.
What is it's legal structure and what industry is it in.
Public Company
Secondary Industry
What is wealth? How is it measured?
It is measured by the amount of assets (things of value a business or person owns).
How is business size measured?
By the number of employees.
Is management an internal or external influence? Management can adopt one of two main approaches. What are they?
Internal influence.
Centralised and decentralised.
What is one challenge a business experiences in the establishment stage of the business life cycle.
No customers
No sales
High set up costs
UrbanEdge Apparel, a streetwear retailer is based in a poorly lit, low-foot-traffic industrial area has suffered declining sales due to disengaged employees and weak customer service.
Identify the two internal influences that are negatively impacting the business.
Location
Business Culture
What is profit? How is it calculated?
Profit = Revenue - Expenses
What are the three geographic spreads?
Local
National
Global
What are the levels of government in Australia?
Local
State
Federal
Identify one challenge in the maturity stage of the BLC.
Staff apathy
Staff turnover
PureHarvest Farms is a small wheat producer that operates in the agricultural market and has no influence over prices. The business is experiencing declining sales as consumers shift toward gluten-free and alternative grain products.
Identify the two external influences that are negatively impacting the business.
Competitive situation
Social
What is innovation?
New idea or improving an existing idea.
What are the 5 industries?
Primary, Secondary, Tertiary, Quaternary and Quinary.
What is the business cycle? Which external influence is it?
Shows the fluctuations/changes in economic activity (GDP) over time. Features of the BS include expansion phases and contraction phases, booms and recessions.
What does WIPES ICE Q stand for?
Wealth, Income, Profit, Employment, Services (goods and), Innovation, Choice, Entrepreneurship, Quality of Life.
What is limited liability? Which legal structures/entities have limited liability? What does incorporation mean?
Only the business is liable not the owners.
Private and Public Companies.
Incorporation simply means the legal process of becoming a company.
A business has a very high level of competition in its industry, however, it has the ability to differentiate its product. What is it's competitive situation?
Monopolistic competition