Business Lifecycle

What are the five stages of a business lifecycle?

• Seed and Development, Beginning, Expansion, Maturity and Decline

• Seed and Development, Start-up, Expansion, Maturity and Decline

• Idea, Beginning, Expansion, Maturity and Decline

• Idea, Problem-solving, Maturity and Decline

True or False: During the Seed and Development stage, there is little pressure on cashflow.

• True

• False

During the Startup stage of a business lifecycle:

• Profits are high

• Profits are low and cash outlays are greater than cash inflows

• cash outlays are smaller than cash inflows

Why is there increased pressure on financial and human resource needs during the Expansion stage of business lifecycle?

• It costs money to set up additional outlets, and there is no need for extra employees.

• It doesn't take much money to expand.

• The owner wants to take holidays, so needs money for the holiday and also to pay someone to run the business.

• It costs money to set up additional outlets, and more employees are needed to man the new office.

What happens during the Maturity stage of a business lifecycle?

• Market share is declining.

• Profits are dropping off because the number of customers are declining

• Competitors are taking market share, and business profits begin to decline.

• All of the above.

Why do businesses put strong financial control measures in place?

• Businesses don't believe financial control measures are as important as Inventory control.

• To minimise risk of errors and fraud.

• All of the above.

What does segregation of duties mean?

• To separate allocation of duties between a number of employees.

• To combine allocation of duties between a couple of employees.

Why is it important to segregate duties?

• It ensures everyone has equal opportunity.

• It ensures employees get to choose the duties they want to take on.

• It prevents employees from taking sick leave.

• It prevents one person being able to complete a number of business transactions without other employees knowing.

Which of the following is NOT a financing option?

• Borrowing from family and friends.

• Borrowing from banks and other lending institutions.

• Borrowing from the stock exchange.

• Arranging an overdraft to a certain value so you can draw on funds that are not there.

Human resources means:

• Employees of the business.

• Labour hire people engaged for a set time.

• Volunteers.

• All of the above.