Business Planning: Topic 3 Key Concepts

Which of the following is a key topic covered under "Business Planning" in Topic 3?

• Small to medium enterprises (SMEs)

• Marketing strategies

• International trade agreements

• Environmental sustainability

Which of the following is NOT listed as a focus area in the business planning process according to Topic 3?

• Critical issues in business success and failure

• The business planning process

• Influences in establishing a small to medium enterprise

• Financial accounting standards

Explain why the number of operating businesses might decrease during a recession. Use evidence from the business cycle's influence on SMEs.

• Because more businesses are created during a recession.

• Because consumer demand and economic activity typically fall, leading to more business exits.

• Because government policies always support business growth in recessions.

• Because the entry rate always exceeds the exit rate in a recession.

What percentage of Australian businesses have 4 people or less?

• 89.2%

• 50%

• 75%

• 60%

Which industry has the highest number of businesses in Australia?

• Construction

• Retail, Hiring and Real Estate Services

• Professional, Scientific and Technical Services

• Manufacturing

What percentage of businesses have a turnover of less than $200k?

• 64.3%

• 10%

• 25%

• 50%

Which of the following is NOT mentioned as a way SMEs have responded to their environment in Australia?

• Increased spending on research and development

• New product developments

• Improved business practices

• Reducing employment opportunities

According to the definition provided, what is another way a small business can be defined besides the number of employees?

• Earning $10 million or less in turnover

• Having more than 200 employees

• Operating in multiple countries

• Being in business for over 10 years

A non-manufacturing SME typically has:

• More than 100 employees

• Fewer than 20 employees

• More than 500 employees

• Fewer than 5 employees

Explain why SMEs are considered important to the Australian economy, using evidence from the provided information.

• SMEs employ a significant portion of the workforce, produce half of all products, provide parts and services to larger organisations, and account for 97% of export products.

• SMEs only provide jobs for managers and do not export products.

• SMEs are not involved in manufacturing or exports.

• SMEs only operate in the public sector.