Business Idea
Two sources of business opportunity
Innovation & Entrepreneurship, market opportunities, changing customer needs, research and development, technological development, global markets
Business environments
Internal, Operating and Macro environments
List the three business resource needs
Natural, Labour, Capital
One way of protecting the business idea
Trademark, Patent, Domain name, Copyright, Design Rights
Define CSR
the business going above and beyond its legal obligations taking into consideration the impact on its stake holders and the environment
List the three types of goals
Personal goals, financial goals, social goals
Customers, competitors, suppliers
Choose one business location and provide advantage and disadvantage
Shopping strip, shopping centre, online presence, home-based business
Distinguish between limited and unlimited liability. Which structures have what?
Unlimited liability – full liability of owner (if their business fails) to the extent of their personal assets. Sole trader and partnerships have unlimited liability, companies are limited.
Describe 2 ways how business help the economy
Taxation - explain
Employment - Explain
Export earnings - explain
GDP - explain
The four reasons that someone might start a business
Independence, to make a profit, to fulfill a market need, to fulfill a social need
Explain two elements of the macro environment
Legal and government regulations, societal attitudes and behaviours, economic conditions, technological developments, global issues, CSR
Describe how internal factors such as employees may impact the external environment
employees interact with customers therefore it is important they have strong customer service to ensure that people feel welcomed and encouraged to make a purchase at the business
List all 5 business models
Online, bricks and mortar, social enterprises, franchise, import/export
A business plan is a written statement of the goals and objectives for a business, and the steps to be taken to achieve them. The planning process is a series of actions taken to achieve an objective
List and explain all elements of a SMART goal
Specific (clear and focused), Measurable (quantifiable), Attainable (challenging but realistic), Relevant (worthwhile and based on the market), Time-bound (deadline is set)
Explain 2 important laws relevant to a new fish and chip shop
Detailed explanation for any 2 of:
- safe food handling act
- occupational health and safety act
- equal opportunities act
-registering a business name
Discuss the choice of being a home based business
Advantages
- saves time as there is no commuting
- no extra utilities and rent costs
Disadvantages
- uses up personal living space
- reduces privacy of personal life
Explain one way that businesses contribute to the economic and social wellbeing of a nation
Economic (employment and tax revenue, economic growth, export earnings, R&D), Social (career and social wellbeing, innovation, CSR)
List one type of CSR issue in relation to business planning
Environmental issues, customer issues, staffing issues
Characteristics of entrepreneurs
Shared vision (what they want the business to look like in the future and share that with the business), Initiative (proactive in taking first steps), Innovation and Enterprise (they take risks)
List 4 different special interest groups
Specific issue groups, environmental lobby groups, business associations, unions, consumer groups
Explain the four different business legal structures
Sole trader, partnership, private limited companies, public companies
List the five factors affecting choice of business location
Visibility, Cost, Proximity to customers and suppliers, proximity to competitors, complementary businesses
Explain two ways the government encourages innovation and entrepreneurship
Government investment in R&D (funding, grants, tax incentives), business mentorships, school-based educational programs, regional business hubs