Chapter 1 review Quiz

Businesses that do not take advantage of business opportunities will keep earning the same amount of profit and are likely to remain successful.

• True

• False

By taking advantage of market opportunities and changing customer needs, a business may be able to attract more customers and therefore increase its sales.

• True

• False

Fill in the blank: A business can take advantage of market opportunities by (a)   .

• Targeting gaps in the market

• Always selling the same products

Fill in the blanks: The business opportunity of _____ involves developing new goods or services, or making improvements upon an existing product. In contrast, _____ involves directing resources towards discovering, creating, and introducing new products and processes.

• Innovation / Research and development

• Research and development / Innovation

• Marketing / Sales

• Production / Distribution

Research and development is only necessary when first establishing a business and creating its initial products.

• True

• False

An ice cream business automating its production line by using machinery to cover its ice cream in chocolate, as opposed to hiring human labour, is an example of a business making use of:

• Technological developments as a source of business opportunity

• Global markets as a source of business opportunity

Businesses should take advantage of (a)   to expand their operations overseas.

• Market Research

• International Partnerships

• E-commerce

• Exporting

Businesses can take advantage of market opportunities by introducing successful international products to Australia.

• True

• False

Businesses should only focus on using one source of business opportunity.

• True

• False

Priya has owned Finite, a restaurant in Melbourne CBD since 2000. On Finite's menu, nine out of the ten main meals being offered have some kind of meat in them, either chicken, beef or fish. In a recent census conducted in Victoria, it was revealed that 25% of Victorians now consider themselves to vegetarian and consume no meat, with the main reason given being that the meat industry negatively impacts the environment. Identify which of the following is a correct statement about Finite’s customers.

• Customer demands are changing as society is placing greater value on preserving the environment.

• Customer taste preferences remain constant.