Basic Commerce Knowledge
What is the term for a physical product that can be purchased, such as shoes or a phone?
A good
What is identity theft?
When someone illegally obtains and uses another person's personal information.
What is money set aside rather than spent called?
Savings
What are the three common types of work arrangements?
Full-time, part-time, and casual arrangements.
What is an entrepreneur?
A person who identifies opportunities and establishes/develops a business, often accepting risk.
What is the difference between a need and a want?
A need is necessary for living.
A want improves comfort or enjoyment but is not essential.
Name THREE factors that can influence a consumer's purchasing decision.
price, income, advertising, family, friends, culture, environmental concerns...
What is superannuation designed to provide money for?
Retirement
a) What number does an Australian worker generally need for taxation purposes?
b) Why do governments collect tax?
a) Tax File Number (TFN).
b) Tax is collected to fund public services and government programs.
What are the three basic stages of business production and what is its purpose?
Inputs (raw materials, labour, information, time) -> transformation (action) -> outputs (goods, services)
Its purpose is to add value to the inputs so the business can produce something that meets customer needs and can be sold.
A supermarket lowers its prices because a new supermarket opens nearby.
What business factor has influenced this decision?
Competition
Give ONE advantage and ONE disadvantage of using a credit card.
Advantage: convenient/access to credit. Disadvantage: interest/debt/overspending.
What government body helps consumers resolve problems with businesses in NSW?
NSW Fair Trading
What is the difference between negotiation and mediation?
Negotiation involves parties resolving the issue themselves.
Mediation involves an independent third party helping them reach agreement.
How can recruiting skilled employees improve business performance?
It can increase productivity, quality, customer service and/or efficiency.
A café earns $8,000 in sales but has $6,500 in expenses. What is its profit?
$1,500
A store displays a sign saying, “NO REFUNDS UNDER ANY CIRCUMSTANCES.” Why could this be misleading?
Businesses cannot remove consumers' legal rights to remedies for faulty products.
Name THREE roles of the ACCC in protecting consumers and promoting fair competition.
Answers may include:
Name the THREE types of employment contracts.
BONUS (300 EACH): Outline each type of employment contracts.
Modern awards: Refer to the legally enforceable minimum terms and conditions that apply to a business/industry.
Enterprise agreements: A negotiated agreement about pay and conditions made at a workplace/enterprise between an employer and a group of employees OR union.
Common law contracts (or individual contracts): Cover employees who are not under any award or enterprise agreements.
During a recession, households reduce spending. Explain ONE likely impact on businesses selling non-essential products.
Sales/revenue may fall as consumer confidence in spending decreases.
A worker receives money in return for completing work for an employer. What is this payment generally called?
Remuneration (pay)
A website displays a countdown timer saying “ONLY 2 MINUTES LEFT” every time the page is refreshed. Why could this influence consumers unfairly?
It creates urgency and may pressure consumers into making a rushed decision.
What is the difference between a major failure and a minor failure under Australian Consumer Law?
A major failure is a serious problem that would have stopped a reasonable consumer from buying the product, makes it unsafe, or means it cannot be used for its normal or stated purpose.
A minor failure is a less serious problem that can usually be fixed within a reasonable time.
A company introduces automation that completes some repetitive tasks previously performed by employees.
Identify ONE opportunity and ONE challenge this could create for workers.
Opportunity: new skilled roles/increased productivity.
Challenge: job loss/retraining/change in required skills.
A small business cannot compete with a large chain on price. Suggest another way it could create a competitive advantage and explain why it could work.
Answers may include: differentiation through personalised service, quality or niche products, giving customers a reason to choose it despite higher prices.