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WorksheetsUnit 1 AOS 3 - The Internal Environment
Total questions: 63
Worksheet time: 32mins
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
What are the disadvantages of a franchise business model?
far less independence
high startup costs and fees
can judged by the reputation or performance of other franchisees
all of the above
Which business model is a combination of a physical store and online store?
Bricks and mortar
Bricks and clicks
Online store
Manufacturing warehouse
What are the benefits of an incorporated partnership or company?
the company has a separate legal identity to its owners, who are now known as shareholders
with limited liability companies, the most money that a shareholder can lose is the amount that they paid for their shares
If the company goes into liquidation, the shareholders cannot be forced to sell their personal assets to pay for the debts of the business
All of the above
Resources are part of which Environment
Macro
External
Internal
Operating
Natural resources include?
people, land, water and raw materials
land, water, machines and people
land, water, and raw materials
subcontractors, land , water and raw materials
Select the MOST correct definition for Natural Resources
Items the business uses that come form the natural environment. Examples include land, water, people and raw materials.
Items the business uses that come from the natural environment. Examples include land, water and raw materials.
Items the business uses that come from the natural environment. Examples include land, water, machines and raw materials.
Items the business uses that come from the natural environment. Examples include land, water, capital and raw materials.
Select the MOST correct definition for Labour Resources .
The people that provide their skills, effort and knowledge to the business.
The people that provide their skills, money and knowledge to the business.
The people that provide their skills, labour and knowledge to the business.
The people that provide their, labour, money, skills and knowledge to the business.
The tools and machinery that are used to produce goods and perform services are called....
human resources
capital resources
natural resource
labour resources
Which is not an external source of finance?
crowdfunding
bank overdraft
bank bills
mortgage
Which is a short term source of finance?
mortgage
leasing
trade credit
Equity is defined as...
starting a business using personal finance or business revenues
individuals or businesses that invest in a new business
funds contributed by the owner(s) of a business to start and build the business
funds available for the short term commitments of a business
Individuals or businesses that invest in a new business are called?
crowd funders
lending institutions
boot strappers
angel investors
The funds provided by banks, other financial institutions, government and suppliers, which must be paid back over time with interest is called...
working capital
bank overdraft
debt
shares
The Lessor is the person who is granted the lease.
False
True
The terms of finance relate to....
the amount of the finance
the date the finance was granted
the amount and frequency of repayment
the type of finance
Which is equity finance?
bank overdraft
self funding
bank bills
leasing
Which is not an external source of finance?
bank overdraft
government grants
family/friends
trade credit
An owner who contributes equity to a business retains no control over how that finance is used.
True
False
Which is NOT a factor affecting the choice of finance:
Business structure
Level of control
Terms of finance
Economic conditions
The most correct definition of Zoning
a means by which Governments allocate land for different areas, such as residential, commercial, recreational and industrial.
a means by which Local Councils allocate land for different areas, such as residential, commercial, recreational and industrial.
a means by which Governments allocate land for different areas, such as housing, shops, parks and business.
a means by which Local Councils allocate land for different areas, such as housing, shops, parks and business.
Which is not an advantage of locating your business in a shopping centre?
access to facilities
access to complimentary businesses
access to prospective customers
access to competitors is limited
A retail shopping strip is located where?
in a residential zone
in an industrial zone
in a shopping centre
along a arterial road
A disadvantage of a retail shopping strip is...
limited access to amenities
reduced rental shops
high visibility
local customer commitment
An online presence means
face to face sales
cash only transactions
limited trading hours
online sales platform
Which is NOT a factor that affects choice of location?
visibility
cost
personal choice
complimentary businesses
The most correct definition for complimentary business is...
businesses that sell free products which are aimed at the same customers
businesses that sell similar products which are aimed at the same customers
businesses that sell different products which are aimed at the same customers
businesses that sell products which are aimed at the same customers
A business owner who has recognised a gap in the market or developed a totally new product should:
Establish a new business
Purchase an existing business
A business owner who is seeking instant income and less risk should:
Establish a new business
Purchase an existing business
Which is NOT one of the three main types of business legal structure:
Sole trader
Partnership
Social enterprise
Company
Incorporation is the process that companies go through to become a separate legal entity from the owner/s.
True
False
What are the benefits of an incorporated partnership or company?
the company has a separate legal identity to its owners, who are now known as shareholders
with limited liability companies, the most money that a shareholder can lose is the amount that they paid for their shares
If the company goes into liquidation, the shareholders cannot be forced to sell their personal assets to pay for the debts of the business
All of the above
A Business model is...
the legal structure used by the business
the location choice of the business
the way the business will run its operations to generate profit
the choice of finance options used by the business
Freemium, brokerage and merchant business are all using the business model.....
bricks and mortar
social enterprise
franchise
online presence
A business who sells large volume of goods to retailers is operating which model?
online
wholesale
franchise
Bricks and mortar
A business that produces physical products often in a factory is operating which business model?
franchise
bricks and mortar
manufacturing
online
If your business model has a physical presence and is visible to customers then you are which common model?
franchise
bricks and mortar
online
manufacturing
The business that is licensed to operate under the name of an existing business and distribute its goods and services is called...
Franchisor
Franchisee
Owner
Shareholder
Goods and services produced overseas and sold to Australian Consumers are called...
Consumable Items
Products/Goods
Exports
Imports
A professional who provides advice on financial management issues is a.....
Lawyer
Banker
Accountant
Solicitor
A professional who provides advice on legal matters and business formation is a ......
Doctor
Accountant
Teacher
Lawyer
Advice provided about sources of finance and basic business management is given by...
Accountants
Bank Managers
Solicitors
Teacher
Advice on Patents, Leases, Contracts, Partnership agreements and business registrations is provided by an .........
Accountant
Doctor
Bank Manager
Solicitor
Advice about networking, purchasing equipment and establishing an online business presence is called....
Legal and Financial Advice
Community based services advice
Technological Advice
Formal Network advice
Rotary, Apex and the Lions Club are all examples of ....
a Partnership
a Business Angel
a formal network
community based services
A place where business owners can access information and support from a large number of professional organisations is......
A franchise
A Public Company
A formal network - Private
A formal network - Government
Government departments such as the Department of Industry, Science, Energy and Resources is a Formal Network. What level of Government?
Federal
State
Local
What is a business plan?
Written document that only outlines the business practices of the new business.
Written document that describes the financial aspects of the business.
Written document that only describes the ownership of the business.
Written document that describes all the steps necessary for opening and operating a successful business.
Why do you need a business plan?
To explain your idea
the ability to get financing.
it's a road map that sets objectives and goals for the business.
To help reduce the risk of business failure.
All of the above.
What is the purpose of performing a SWOT Analysis? (CRE)
Identifies internal and external factors that may affect the business future performance.
Access a organisations performance
Evaluates whether the business venture is a good idea.
Gives the management team a broader view on the potential opportunity
What would be a potential threat to a business?(EVA)
Changes in technology and markets e.g. The internet.
Ability to prioritize
Flexibility
Intrusions in the market
When assessing on the businesses external environment the owner is concerned with?(APP)
Opportunities and Threats
weaknesses and threats
strengths and weaknesses
strengths and opportunities
What does the acronym SWOT stands for?(EVA)
Strengths, Weaknesses, Obligations, Threats
Strengths, Weaknesses, Opportunities, Threats
Strengths, Weak points, Opportunities, Threats
Strengths, Weaknesses, Opportunities, Time
What would be a potential threat to a business?
Changes in technology and markets e.g. The internet.
Ability to prioritize
Flexibility
Intrusions in the market
