Business Exam slay queen

What is a personal motivation behind starting a business?

Desire for personal and financial independence.

What is the concept of entrepreneurship?

Entrepreneurship is the process where a person creates and operates a new business.

What are the characteristics of successful business entrepreneurs? How do they contribute to business success?

Business entrepreneurs establish a shared vision.

What are the sources of business opportunity?

The sources of business opportunity are innovation and entrepreneurship.

What is the relationship between business opportunities and business concept development?

The development of the business concept is when a business owner takes an idea that comes from an assessment of possible opportunities and turns it into an actual business.

What is market research?

Market research is a process involving gathering and analysing information concerning a specific market.

What are the three steps for market research?

1. Identifying what information is needed to make a decision about a business.

2. Gathering relevant information from appropriate sources.

3. Analysing and interpreting relevant results to extract information assisting in decision-making.

What is a Feasibility Study?

A feasibility study is an assessment of a business idea's potential for success done by assessing a market and understanding whether others have tried this idea.

What is a Business Idea?

A business idea is a raw often spontanous general thought.

What is a Business Concept?

A business concept is a refined, structured, and actionable plan that

outlines the target market, value proposition, and how the business will

make money.

What is the difference between a Business Idea and a Business Concept?

A concept turns an idea into a tangible strategic opportunity

Why is business concept development important?

Business concept development is important because it turns an idea into a clear workable plan before investing time and money.

What are the five steps to business concept development?

1. Initial idea

2. Conduct market research

3. Refine business concept

4. Conduct feasibility study

5. Write business plan

Why is goal making and decision making important in business?

Goal making and decision making are important in a business because they describe what a business expects to accomplish over a set period, and decisions guide the growth of the business.

What is the Business contribution to Employment and taxation revenue?

• Businesses provide employment.

• Employed Australians will use the wage they earned to buy goods and services.

• Boosting taxation revenue received by the government through payroll tax.

What is the Business Contribution to Economic growth?

Growth occurs when a nation increases the real value of goods and services over a period of time.

Main measurement: GDP (Gross Domestic Product), which is the economic value of all the finished goods and services produced in Australia over a specific time period.

What is the Business Contribution to export earnings?

Exports refer to the sale of goods and services in other countries.

Exports contribute to BOP (Balance Of Payment), a record of a country's trade and financial transactions with the rest of the world.

What is the Business contribution to research and development?

To foster innovation, maintain a competitive edge, and drive long-term growth.

What are the methods for fostering a culture of business innovation and entrepreneurship in a nation?

1. Government investment in research and development

2. Council grants for new businesses

3. School-based educational programs in entrepreneurship

4. Regional business startup hubs

How do Businesses Contribute to a nation's social wellbeing?

Businesses contribute to the social wellbeing of a nation by supporting

career development and social wellbeing, innovation and corporate

social responsibility.

What is an unincorporated business?

An unincorporated business has no separate legal existence from its owner(s) and will be either a sole trader or partnership. The most common legal structure for businesses in Australia is the unincorporated enterprise, because this structure is the easiest and cheapest to establish. E.g.: Sole traders and partnerships.

What is a sole trader?

A sole trader is an individual operating as the only person legally responsible for owning and running the business.

What is 1 advantage and 1 disadvantage of a sole trader?

Advantage: Low cost of entry. Disadvantage: End of business when owner dies.

What is a partnership?

A partnership is also an unincorporated business ownership structure. Most partnerships require a minimum of 2 and a maximum of 20 partners.

What is 1 advantage and 1 disadvantage of a partnership?

Advantage: Low startup costs. Disadvantage: Personal unlimited liability.

What is an incorporated business?

An incorporated business has its own separate legal existence. Regardless of what happens to individual owners (shareholders) of the company, the business can continue to operate. E.g.: Private, Public, and Government.

What is incorporation liability?

Limited liability.

What are private companies?

Answer: A private limited company (or proprietary company) is the most common type of structure in Australia. It must have at least one director, at least one shareholder, and a maximum of 50 non-employee shareholders.

What are public companies?

The shares for a public listed company are listed on the Australian Securities Exchange (ASX), and the public may buy and sell shares in this type of company.

What is 1 advantage and 1 disadvantage of company business ownership?

Advantage: Easy transfer of ownership. Disadvantage: Double taxation.

What is a social enterprise?

A social enterprise can operate in many ways — it can take the form of a cooperative (a business that is owned and operated by the group of members) or a privately owned business.

What is 1 advantage and 1 disadvantage of social enterprises?

Advantage: Meeting a social need can have a positive effect on profit and market share. Disadvantage: Significant operating costs.

What is a SWOT analysis?

A SWOT analysis is a planning tool that identifies the business’s internal strengths and weaknesses, as well as any opportunities and threats from the external environment.

What part of SWOT are considered internal assessments?

Strengths and Weaknesses.

What part of SWOT are considered external assessments?

Opportunities and threats.

What is a business plan?

A written statement of the goals and objectives for a business, and the steps to be taken to achieve them.

What are the benefits of business planning?

Helps test the viability of a business, assists the business to be proactive rather than reactive, assists in maintaining the business operation, indicates the owner’s ability and level of commitment, forces the business owner to justify his or her plans and actions, and identifies strengths/weaknesses.

What should a typical business plan include?

Executive Summary: One-page document summarising the business and its objectives.

Operations Plan: Outlines the way the business will be set up and human resources needed.

Financial Plan: Details how the business will be financed.

Marketing Plan: Outlines key information from the industry and the gap in the market the business will fill.

What is a business support service?

A specialised person, facility, or amenity intended to assist and enhance the success of business activities.

For legal and financial advice, what are the people you should go to?

Solicitors: Lawyers that provide information about registrations, contracts, laws, business formation, and partnership agreements.

Accountants: Provide advice on all financial management issues and tax obligations.

Bank Managers: Advice on financial services, sources of finance, and basic business management.

What is technological advice?

Establishing a relationship with an ICT (Information and Communications Technology) consultant.

What are community-based services?

Experts, facilities, and programs assisting a new business to develop management skills, access business networks, encourage local small business, and support local job creation.

What are examples of formal networks (private)?

Chambers of commerce, the small business association, trade associations.

What are examples of formal networks (public)?

Federal, state, and local government organisations.

What is an example of informal networks?

Business mentors.

What are the sources of finance?

Self-funding and equity, family or friends, private investors, government grants, crowdfunding, bank loans.

What is short-term borrowing?

This type of borrowing is used to finance temporary shortages in cash flow or finance working capital. It generally needs to be repaid within one or two years.

What is an example of short-term borrowing?

Bank overdraft: The bank allows a business or individual to overdraw their account up to an agreed limit for a specified time, to help overcome a temporary cash shortfall.

What is long-term borrowing?

This type of borrowing can be secured or unsecured, can be repaid over a longer period (more than 2 years), and interest rates are usually variable.

What is an example of long-term borrowing?

Mortgage: A loan on a property, secured by the property of the borrower (the business). These loans are repaid through regular repayments over an agreed period, such as 15 years.

What is the macro environment?

Broad external forces that affect all businesses and cannot be controlled (economic, legal, social, tech, global, CSR).

What Are the Laws when starting a business?

Register business name with ASIC (unless using own name); need an ABN for registration; partnerships/companies need a tax file number; companies must register with ASIC to get an ACN.

What are the laws related to location?

Zoning/building regulations, signage rules, fire regulations, and parking regulations.

What are the laws for health?

Local government enforces health regulations under the Food Act 1984 (Vic), covering food storage temperature, kitchen layout, employee clothing, correct food handling, and regular unannounced health inspections.

What are the employee regulations?

Laws covering employment conditions, unfair dismissal, dispute resolution, equal opportunity (Equal Opportunity Act 2010 Vic), tax and superannuation payments, and workplace safety (Occupational Health and Safety Act 2004 Vic).

What are the anti-discrimination regulations?

Laws that make it illegal to discriminate against employees based on age, disability, gender identity, marital or parental status, physical features, political or religious beliefs, race, sex, or sexual orientation under the Equal Opportunity Act 2010 (Vic).

What are the work health and safety regulations?

Laws that require businesses to provide a safe workplace and meet state/territory safety requirements. In Victoria, this is mainly covered by the Occupational Health and Safety Act 2004 (Vic).

What are the laws for Trade Practices and Consumer Protection?

Laws under the Competition and Consumer Act 2010 (Cth) that ensure fair trading and protect consumers, giving them rights to goods that are of acceptable quality and fit for purpose, and allowing refunds or replacements for faulty products.

What are the Environmental Protection Legislation?

Laws administered by federal, state, and local governments to protect the environment. Key laws include the Environment Protection and Biodiversity Conservation Act 1999 (Cth) for national environmental issues and the Environment Protection Act 1970 (Vic) covering pollution, noise emissions, and damage to air, water, and land.

What is BAS?

A report to the ATO summarising GST collected/paid and PAYG.

What is GST?

10% tax on most goods and services collected by businesses and paid to the ATO.

What is PAYG withholding?

Tax taken from employee wages and sent to the ATO by the business.

What are societal attitudes?

Beliefs and attitudes that affect businesses and are part of the macro environment.

How do societal attitudes affect businesses?

They influence how people live, work, and consume products.

What influences changes in societal attitudes?

Demographics, education levels, values, and expectations.

What are trends?

The general direction in which society’s behaviour or attitudes are changing.

What are economic conditions?

Interest rates, wages, unemployment, exchange rates, inflation.

What is an interest rate?

Cost of borrowing money.

What is unemployment?

People without work who are available to work.

What is an exchange rate?

Value of AUD compared to other currencies.

What is inflation?

Increase in general prices over time.

Why must businesses use technology?

To stay competitive and avoid becoming outdated.

What are benefits of technology?

Efficiency, productivity, quality, new markets, global communication.

What are disadvantages of technology?

Cost, job losses, shorter product life cycles, constant updates.

What are global factors?

International influences affecting businesses.

What are overseas competitors?

Businesses from other countries competing in the same market.

What is offshoring?

Moving jobs or production overseas to reduce costs.

How does a business handle Patents, copyrights & trademarks (IP protection)?

By protecting inventions, creative works, and brand identity using patents (inventions), copyrights (creative works like music, films, code), and trademarks (logos and brand names), preventing copying and maintaining competitive advantage.

What is the operating environment?

External stakeholders that directly affect daily operations (customers, competitors, suppliers, special interest groups).

What do customers expect?

High quality products and good customer service.

What must businesses do about competitors?

Be aware of them, monitor them, and aim for competitive advantage.

Why are suppliers important?

They provide resources needed for production.

What must businesses consider about suppliers?

Reliability, sustainability, sourcing, and supply chain management.

What is a supply chain?

The network of suppliers used to produce and deliver goods/services.

Why is the supply chain important?

If disrupted, production cannot occur or demand cannot be met.

What are the stages of a supply chain?

Sourcing - Manufacturing - Storage - Distribution.

What are special interest groups?

Groups that try to influence or persuade businesses to change how they operate.

What is the impact of special interest groups on business planning?

They can cause project delays, budget changes, and procedure shifts.

What are environmental lobby groups?

Groups that push businesses to adopt sustainable practices and protect the environment.

How do environmental lobby groups affect business planning?

They can force expensive impact studies or changes to project plans.

What are business associations?

Organisations that support businesses through training, legal advice, and industry advocacy.

How do business associations affect business planning?

They provide data and insights that help managers forecast industry trends and changes.

What are unions?

Groups that represent workers to improve pay, safety, and working conditions.

How do unions affect business planning?

They can impact labour costs, project timelines, and safety standards.

What are consumer groups?

Groups that monitor product safety, pricing, and packaging to ensure fair treatment of consumers.

How do consumer groups affect business planning?

Businesses must meet high standards to avoid negative publicity and backlash.

What is CSR?

Businesses operating ethically with consideration for environmental and social impacts.

What must businesses consider in CSR?

Environmental impact and how goods/services are produced.

What are the benefits of CSR?

Competitive advantage, positive reputation, increased sales, customer loyalty, and positive stakeholder relationships.

What environmental actions can businesses take for CSR?

Renewable energy, recycling, waste reduction, sustainable sourcing, and responsible suppliers.