Types of Businesses
Name 3 types of business structures found in Australia.
Sole trader, Partnership and Company (or Corporation).
What is the definition of demand?
Demand is the amount of a good or service consumers want to buy.
What is the definition of a market?
Any environment where buyers and sellers meet to exchange goods and services.
What are the other names given to buyers and sellers?
Consumers and producers.
How many partners can a partnership have? Include minimum and maximum amounts.
Between 2 and 20.
Name 3 different reasons why demand for goods and services might change.
What is the difference between goods and services?
Goods are physical items while services are actions performed in exchange for money.
What are the 4 types of economies?
Traditional, command, market and mixed economies.
What are 2 advantages associated with being a sole trader?
Easy to start, low cost, keep all profits, responsible for all decisions (no conflicts), own boss and choose when to work.
The demand for masks increased greatly during the Covid-19 pandemic. What is the name we give to this kind of change in demand (i.e. what caused this change)?
A new government policy.
What are 2 advantages of using virtual markets from a buyer's point of view?
Can shop at any time, cheaper options, products are guaranteed to be available.
What are 2 factors that influence the price a buyer is willing to pay for goods or services?
Quality of goods/services AND how it compares to the cheapest option available.
A private company may have up to 50 owners. What is the name given to those people?
Shareholders.
What is one way a business may respond to changes in demand so that they remain popular?
Introduce a new product, change their product's price or use new advertising.
Name 3 types of markets.
Retail, share, finance, property, wholesale, agriculture, foreign, commodity and sport/leisure markets.
What are 2 factors that influence the price producers charge for goods and services?
What does unlimited liability mean?
If a sole trader or partnership does not have enough money to pay their business debts, then the sole trader/partners' personal assets may have to be sold to cover the money the business owes.
What does SWOT stand for?
Strengths, Weaknesses, Opportunities and Threats.
What is the definition of scarcity?
Unlimited needs but limited resources.
What are the 4 factors of production?
Capital, Enterprise/Entrepreneurship, Land and Labour (CELL).