Business Fundamentals: 10 Business Ultimate Revision

Which of the following ISN'T a type of organisation structure?

• Functional

• Divisional

• International

• Simple

Answer explanation

International is not a structure.

Simple structures are suitable for seed/start-up businesses.

A functional structure is suitable for a business int he growth stage.

A divisional structure is suitable for a business with varied product lines, or international subsidiaries -> such as mature, or post-maturity businesses.

Which of the following ISN'T a type of partnership?

• General Partnership

• Limited Partnership

• Incorporated Limited Partnership

• Trust Partnership

Answer explanation

Which business structure has trustees?

Answer explanation

Which of the following factors make up the operating external environment?

• Customers
  Competitors

  Stakeholders

  Suppliers

• Political

  Environmental

  Social

  Technological

  Legal

  Environmental

• Employees

  Organisational Culture

  Organisational Structure

  Owners / management

• Advertising

  Industry data

  Competition

  Employees

Answer explanation

The operating external environment is made up of elements loosely within affect of the business (stakeholders, competitors, suppliers, customers)

What are the 5 stages of the Business Life Cycle?

• Peak

  Contraction

  Boom

  Recession

• Seed

  Startup

  Maturity

  Renewal

  Decline

• Seed

  Growth

  Maturity

  Decline

  Renewal

• Seed

  Start-up

  Growth

  Maturity

  Post-maturity

Answer explanation

The Business Life Cycle and the Economic Trade Cycle and completely different concepts.

The Business Life Cycle looks at the stages a business will go through over the course of it's existence. The Post-Maturity phase has two-options within - decline or renewal.

HINT: review the characteristics of each stage of the life cycle before your exam.

What do SWOT tables help business professionals to achieve?

• Assess the strengths and weaknesses of a business

• An accurate and relevant snapshot of the business environment

• Review business performance

• Look for threats in the environment, and plan strategically

Answer explanation

What is the Business Life Cycle?

Answer explanation

The business life cycle is a representation of a series of stages that can be applied to the duration of activity that a business conducts.

List the factors of production.

Answer explanation

Factors of production are the inputs (what is necessary to start and operate a business) used in the production of goods and services in order to make a profit.

They consist of:

• - land (a place to operate)

• - labour (people to operate your business)

• - capital (equipment, assets, machinery)

• - entrepreneurship (the drive to turn an idea into a business)

List three types of business structures.

Answer explanation

We covered the four main business structures in class.
- sole trader

• - partnership

• - company (public or private)

• - Trust

Which of the following is a suitable strategy for a company in the maturity stage of the business life cycle?

• Prototype development for an initial product

• Sourcing funds through crowdfunding and/or investments

• Maintaining market share

• Evaluating exit strategies

Answer explanation

In the growth stage, a focus for businesses is remaining competitive - i.e. maintaining market share or a portion of the industry sales.

They have already developed their products, and have secured funding. They are a stable business venture.