Unit 1 - AOS 2 Internal

A busy street is more important for a retailer than a wholesaler

• True

• False

An advantage of starting a business from scratch is...

• profits are gained after a short duration of time

• you only need to use a small amount of debt

• you receive support from a successful franchisor

• greater independence and control over the planning

What is the main disadvantage of buying an established business?

• A proven track record makes it easier to obtain finance

• Stock and capital resources has already been acquired and is ready for sale or use

• A good business history increases the likelihood of business success and goodwill

• Can be hard to assess the value of goodwill, with

  the chance that the new owner will pay more than the

  goodwill is worth

What are the characteristics of a business partnership?

• A partnership can only be incorporated

• Unlimited shareholders can invest into the partnership

• Partnerships can have from 2 to 20 partners

• All partnership businesses are not liable for costs or debt

What is a capital resource?

• timber, wealth, fresh water and mineral deposits

• Human physical and mental effort, skills or leadership used

• Human- made items used in the process of production

• all of the above

What is an example of a source of business finance

• financial institutions

• family or friends

• crowd sourcing

• All of the above

Bringing capital resources into the business is not classed as equity.

• True

• False

If a business name has "PTY LTD" in it, what legal structure has it used?

• Sole Trader

• Unincorporated partnership

• Private company

• Public company

Based on this business's name, which legal structure would this business used? "Rowland & Chris Plumbing"

• Sole trader

• Partnership

• Public company

• Private company

What is the advantage of an online business model?

• Face to face customer interaction is possible

• Customers trust purchasing online

• Online fraud isn't a concern

• global customer base and world wide access to customers