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Question 1: sole trader – have to know what this is, 4 multiple choice, they work by themselves, they get all the money, can’t get it wrong, A sole trader is a business that is owned and operated by one person. The owner may employ other people to work in the business, but the owner or sole trader is the person who provides all the finance, makes all the decisions and takes all the responsibility for the operation of the business.

Question2: social and ethical ability of business, responsible to everyone, responsible for inside the organization and outside the organization small businesses depend on reputation and trust among people in the community. By treating employees and customers well, businesses can gain the community’s support and enhance reputation Unethical business practices can have the opposite effect on customers. False or discriminatory advertising, negative treatment of employees and ignoring safety concerns in products can undermine consumer confidence. social responsibility included: cultural, economic and environmental issues ethics in leaderships: Running a business in an ethical manner from the top down builds a stronger bond between individuals on the management team, further creating stability within the company.

Question 3: industry that involves transfer and process in of information and knowledge. Primary, industry, tertiary, quaternary Primary industry: This sector is related to the production and retrieval of raw materials such as coal, iron, and wood. The activities of the Primary Sector include mining, fishing, and agriculture, which includes both subsistence and commercial, grazing, hunting, farming, and quarrying Secondary Industries involves the transformation of the raw material into the finished or manufactured goods. This sector has developed because of the demand for more goods and services, and it also helps in the industrialization process The Tertiary Sector is actually the service sector, which involves the giving away direct services to its consumers. It supplies services to the immediate consumers and the business houses and it includes services related to retail, transportation, hotels, sales and much more. The Quaternary sector is an improved form of tertiary sector as it involves the services related to the knowledge sector, which includes the demand for the information- based services like taking the consultancy from tax managers, statisticians and software developers. The services involved in this type of economy are outsourced in varied forms as the doctor’ services, elementary schools and university classrooms, theaters, and brokerage firms. It also includes intellectual activities and services as research and development (R&D), media, culture, and information and communications technology (ICT). Quinary sector: The professions of the people working in this industry are generally referred to as "gold collar" professions since the services included in the sector focus on interpretation of existing or the new ideas, evaluation of new technologies, and the creation of services. An industry consists of businesses that are involved in similar types of production. • Primary industry — production from natural resources. • Secondary industry — production of finished or semi-finished goods. • Tertiary industry — performing a service. • Quaternary industry — services that involve the transfer and processing of information and knowledge. • Quinary industry — services that have traditionally been performed in the home.

Question 4: business is important to Australian economy because (GDP, cash flow… ) Question 5: four pieces of marketing: price products, place promotion, …. The four Ps are the categories involved in the marketing of a good or service and they include product, price, place and promotion. Often referred to as the marketing mix, the

four Ps are constrained by internal and external factors in the overall business environment and they interact significantly with one another. Product: Product refers to a good or service a company offers. A product should meet a certain consumer demand or be so compelling that consumers believe they need it. To be successful, marketers should understand the life cycle of a product, and business executives should have a plan for dealing with products at every stage of their life cycles. The type of product also partially dictates how much businesses can charge for it, where they should place it, and how they should promote it.

Price is the cost consumers pay for a product. Marketers must link the price to the product's real and perceived value, but they also must consider supply costs, seasonal discounts and competitors' prices Place decisions outline where a company sells a product and how it delivers the product to the market. The goal of business executives is to get their products in front of consumers most likely to buy them. Promotion includes advertising, public relations and promotional strategy. In addition, marketers tend to tie promotion and placement elements together so they can reach their core audiences. Why it important: Improve business, help business bring their product to consumer effectively, increase the product portfolio,

Question 6: private company is listed on stock exchange – 6 multiple choice

Advantages of being listed: 1. Raising money from public at cheaper rates Public financing allows management to raise larger sums of money as valuations are typically higher in a public financing because the stock sold can be freely traded. Company can raise new money anytime in the market by issuing more stock to the public. 2. Attractive for employees: Stock and stock options programs can be offered to potential employees, making the company attractive to top talent 3. Building a public image: A company’s stock listed on an exchange could attract the attention of hedge funds, mutual funds and institutional investors. The company's credibility also increases with the public, as the company is directly endorsed through its share performance in the market.

Question 7: a successful partnership is considering changing the ownership into a private company. ) answer is in the book

a) assess the advantages and disadvantages of this action (3 marks) private company Advantages disadvantages  Limited liability – separate legal  Cost of formation entity  Double taxation – company and  Experienced management – board of personal directors  Must publish a yearly annual report  Greater spread of risk of audited accounts  Become too large resulting in  Growth potential inefficiencies

Partnership advantages disadvantages  Low start-up cost  Personal unlimited liability  Less costly to operate than a  Liability for all debts, including company partner’s debts, even before the  Showed responsibility and workload partnership has begun  Pooled funds and talent  Possibility of disputes  Minimal government regulation  Difficulty in finding a suitable  No taxes on business profits, only on labour personal income  Divided loyalty and authority  On death of one partner, business can keep going b) why should this partnership also consider becoming a franchisor? Advise of any disadvantages of such a decision (2 marks) The franchisor grants the rights and provides the business structure. The franchisor is not concerned with the day to day operation of the business, fast and selective product distribution, avoids costs of construction, does not have to operate outlets, agreement ensures some control, motivated franchisees. There are two disadvanges of being franchisor: Unsuitable franchisee, Disagreement over conditions and terms of contract

Question 8: using examples of types of businesses, explain the difference between tertiary, quaternary and quinary industries. Then go on to briefly justify the growth in these three industry sectors in austrlia ( 5 marks) mimum 400 words Tertiary: The tertiary sector of the economy is also known as the service industry. This sector sells the goods produced by the secondary sector and provides commercial services to both the general population and to businesses in all five economic sectors. Tertiary activities include both production and exchange. The production involves the ‘provision’ of services that are ‘consumed. Activities associated with this sector include retail and wholesale sales, transportation and distribution, restaurants, clerical services, media, tourism, insurance, banking, health care, and law.

Businesses in the tertiary industry provide a service. Tertiary industry involves people performing a vast range of services for other people. Examples include retailers, dentists, solicitors, banks, museums and health workers. Over the past 50 years, the number of businesses and people employed in this industry sector has grown rapidly, to a point whereby, today, about three out of every four employees, and two out of every three businesses are classified as tertiary. Due to this increase in numbers, the tertiary sector has been subdivided into two other sectors: quaternary and quinary.

Australia is a world-class provider of a range of services. This sector makes up a large part of the Australian economy, representing over 70% of GDP and employing four out of every five Australians. In 2016, services made up 21.6% of Australia’s total exports. When the value that Australian services add to goods exports is also taken into account, services represent around 40% of our export earnings. In 2016, Australia's five-largest services exports were: Education-related travel services — $22.0 billion Recreational travel services — $17.4 billion Professional services — $4.8 billion Business travel services — $4.2 billion Financial services — $3.5 billion. Quaternary: The Quaternary sector is an improved form of tertiary sector as that involve the transfer and processing of information and knowledge. which includes the demand for the information- based services like taking the consultancy from tax managers, statisticians and software developers. Personnel working in office buildings, elementary schools and university classrooms, hospitals and doctors’ offices, theatres, accounting and brokerage firms all belong to this category of services. Like some of the tertiary functions, quaternary activities can also be outsourced. They are not tied to resources, affected by the environment, or necessarily localised by market. , Australia’s technology-driven industries, such as Information, Media & Telecommunications; and Professional, Scientific & Technical Services increased by an annual average rate of about 5% over this period. The IT services market in Australia is on track to reach $23.4 billion in the next four years, according to research published by IDC. The market analyst predicts that revenue from IT services will grow at a rate of 3.8 percent through to 2023, a marginal increase on its previous prediction of 3.7 percent growth to 2022. IDC estimated the market to be worth $19.4 billion in 2018. Quinary sector: Quinary industry includes all services that have traditionally been performed in the home. Examples include hospitality, tourism, craft-based activities and childcare. It includes both paid and unpaid work. Approximately 1.3 million children aged 12 and under are expected to attend some form of government-approved or government-funded child care service in 2018-19. The rising maternal workforce participation rate has further supported demand for child care services over the period. Furthermore, the government has relaxed regulations to allow child care centres to register as kindergarten providers. This has bolstered the appeal of long day care centres, which can now compete directly with the Preschool Education industry.

Question 9: read the articles and answer question (indentify business type) e) with the aid of a diagram, calculate what stage of the business life cycle Shoes of Prey is currently in. Give reasons for your answer. ( 3 marks) ( in the books) diagram

The business life cycle is the progression of a business and its phases over time. Establishment: Each company begins its operations starting operations as a business and usually by launching new products or services. During the launch phase, sales are low, but slowly increasing. Businesses focus on marketing to their target consumer segments by advertising their comparative advantages and value propositions. However, as revenue is low and initial startup costs are high, businesses are prone to incur losses in this phase. the cash flow during the launch phase is also negative but dips even lower than the profit. Growth: In the growth phase, companies experience rapid sales growth. As sales increase rapidly, businesses start seeing profit once they pass the break-even point. However, as the profit cycle still lags behind the sales cycle, the profit level is not as high as sales. Finally, the cash flow during the growth phase becomes positive, representing an excess cash inflow. Maturity: When the market matures, sales begin to slowly decrease. Profit margins get thinner, while cash flow stays relatively stagnant. ’s important to note that many businesses

extend their business life cycle during this phase by reinventing themselves and investing in new technologies and emerging markets. This allows for companies to reposition themselves in their dynamic industries, and hence refresh their growth in the marketplace. Post-maturity: sales all delcine Renewal: New areas of growth cause increased sales and profits Steady State: A continuing state of maturity. Decline: Profits begin to fall as a result of poor management; often a direct result of a drop in sales or excess expenses.

Section C: extended writing Option1: Small businesses have a high failure rate. Research has clearly identified many reason why they fail, however it is still an ongoing concern. Why do so many businesses still fail? What steps would you recommend that an entrepreneur consider when establishing a small to medium size business? Write 400 words at least about this

According to the Australian Bureau of Statistics, more than 60 percent of small businesses cease operating within the first three years of starting. To safeguard a new or established business from falling into the 80% of failed companies, it is necessary to understand what can lead to business failure and how each obstacle can be managed or avoided altogether. One of the most common reasons small businesses fail is lack of management. Small business owners frequently lack relevant business and management expertise in areas such as finance, purchasing, selling, production, and hiring and managing employees. To remedy the problem, small business owners can educate themselves on skills they lack, hire skilled employees, or outsource work to competent professionals. Lack of proper planning is another common reason small companies fail and go out of business. . It's important to regularly study, organize, plan and control all activities of your business operations. This includes the continuing study of market research and customer data. A leading cause of business failure, overexpansion often happens when business owners confuse success with how fast they can expand their business. A focus on slow and steady growth is optimum. Once having an established solid customer base and a good cash flow, SMES can think about expand the business wider. Getting paid – bad debts often become a major issue. Lack of capital will destroy business over time, lack of liquidity will destroy it in a heartbeat, and accounts receivable is your biggest contributor to liquidity. Before starting a small business, SMES need to figure out how much money needed to live and how much money is needed to run business. Marketing plays a critical role in any business and, if done incorrectly, can cause permanent damage to the business’ brand and reputation. It is an important strategy to ensure the growth of the business. Little efforts like social media posts and email campaigns can not only engage existing consumers but spread the word to new potential customers.

Option 2: writing a business plan is important because ideas tend to be no more than wishful thinking until transferred on paper Discuss using examples: the benefits of a business plan, the key components of a business plan including a SWOT analysis, Vision statement, Goals and or Objectives and monitoring and evaluation

Business life cycle stages Quaternary industry (books) ( indentify trong sach ) answer in the books

Incorporated and unincorporated business structures The four main legal structures of privately owned business ( page 35 chapter 2) Page 38 advantages and disadvantages ( some reason wwhy become franchisor) -> timf hieu ve cai tu nay...