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Preliminary Business Studies Revision - FULL Flashcards | StudBud
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Preliminary Business Studies Revision - FULL
Preliminary Business Studies Revision - FULL
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1
Which of the following would be a weakness on a SWOT analysis?
Interest rates have just increased to a higher rate
Sales staff are still unfamiliar with products & lack skills
The federal government has just created new business laws
A new competitor has just been established nearby
2
Which of the following would be a threat on a SWOT?
Cash flow problems
Cheaper imports from overseas
Poor customer relations
Large staff turnover
3
Which of the following typically has the highest risk of failure?
Opening a franchise
Starting new business from scratch
Floating your business on the ASX
Buying existing business
4
The phase when a new business starts to have an increase in sales
Growth
Establishment
Maturity
Post-Maturity
5
What is a financial goal?
focuses on profit
aims to benefit the community
doing what is ethical or right
goals of individual owner(s)
6
When a large job is split into small specific jobs to maximise efficiency
Leadership styles
Division of labor
Management hierarchy
Controlling and monitoring
7
What does the behavioural approach to management emphasise?
leading, motivating and communicating
flexibility & adaptation of practices to suit circumstances
reacting and responding to change after it occurs
planning, organising and controlling
8
Which of the following refers to the goodwill of a business?
Liabilities
Creditors
Reputation
Equity
9
A business has developed a plan for the next 5 years. What type of plan is this?
Tactical
Strategic
Operational
Technical
10
A style of leadership which stresses flexibility of management to changing circumstances
Classical-scientific
Democratic
Contingency
Behavioural
11
What is the name of the below graph?
Economic cycle
Boom/bust cycle
Business economic cycle
Business life cycle
12
Comparing what was intended to happen with what actually occurred
Leading
Controlling
Planning
Organising
13
The phase when a business starts to change after many years of constant sales
Growth
Establishment
Post-Maturity
Maturity
14
The process of converting a company's assets into cash is known as
Liquidation
Stakeholders
Bankruptcy
Cessation
15
Which of the following is a private company?
Sam's Foods Pty Ltd
Sam's Foods Ltd
Sam and Samuel's Foods
Sam's Foods
16
A business which is a
different
legal entity to its owners is
Unincorporated
Incorporated
17
A sole trader can go out of business when
The owner dies
All of the above
Declared bankrupt
Chooses to close
18
Which of the following is
not
an external influence on business?
Legal
Management
Social tastes
Competitive situation
19
An unenthusiastic response to proposed changes by management
Inability
Irony
Inertia
Inappropriate
20
Which of the following issues would a business likely face in the establishment phase?
Need to expand
Cash flow problems
High sales
Excess funds
21
Which are external factors in a business?
Economic, competitive situation, political
Sales, Shareholders, business culture
Money, Employees
Political, Social, Regional, Local
22
Which of the following could be a benefit of starting a new business from scratch?
training, mentoring and advice are available
establishment costs may be reduced by working from home
set of established procedures
start-up finance is easier for a proven model
23
What does the acronym POLC stand for?
Planning, Organising, Leading, Controlling
Producing, Organising, Leading, Controlling
Planning, Operations, Leading, Controlling
Planning, Organising, Luring, Controlling
24
SME stands for
Small-Medium Enterprise
Simple-Medium Enterprise
Small-Medium Employer
Small-Massive Enterprise
25
What is the accounting equation?
Assets = liabilities + owner's equity
Liabilities = owner's equity - assets
Assets = liabilities - owner's equity
Liabilities = assets + owner's equity
26
What is corporate social responsibility goal?
focuses on profit
doing what is ethical or right
aims to benefit the community
goals of individual owner(s)
27
The process of identifying, evaluating and selecting options to solve problems
Flexibility
Leading
Stakeholders
Decision making
28
When one person decides to go into an
unincorporated
business
Sole trader
Private company
Partnership
Public company
29
What is the name of the below graph?
Business economic cycle
Economic cycle
Boom/bust cycle
Business life cycle
30
Items of value possessed by the business that can be given monetary value
Skills
Assets
Vision
Liabilities
31
If a business has 3 employees, it is classified as:
Medium
Large
Micro
Small
32
A group of customers with similar characteristics who could purchase your product
Specialisation
Target market
Customer construct
Promotion segment
33
What is the name of money earned from cash in a savings account?
Rent
Interest
Profit
Dividends
34
What does the contingency approach to management emphasise?
reacting and responding to change after it occurs
planning, organising and controlling
leading, motivating and communicating
flexibility & adaptation of practices to suit circumstances
35
When a business is closed by choice of the owner(s)
Involuntary cessation
Voluntary cessation
36
A legally binding, formal agreement between employee and employer
Employment contract
Work choices
Full time employment
Common law
37
Which of the following is
not
an internal influence on business?
Business culture
Economy
Location
Product
38
Product, price, promotion and place are part of which KBF?
Finance
Human Resources
Operations
Marketing
39
Sales assistants outlining the benefits and features of products to consumers is an example of
Advertising
Personal selling
Publicity
Sales promotion
40
What is the name of the below change model?
Unfreeze, change, refreeze
Pros and cons
Forcefield analysis
Change model
41
Gross profit equals
Revenue minus accounts payable
Net profit - sales profit
Sales minus Cost of Goods Sold (COGS)
Accounts payable minus owners equity
42
Which of the following best describes an entrepreneur?
An academic
A risk-taker
An inventor
A highly skilled employer
43
The overall summary of a business report is called
Conclusion
Introduction
Recommendations
Executive summary
44
What stage of the HR cycle involves identifying staffing needs?
Separation
Acquisition
Development
Training
45
Calculate the value of owner's equity if liabilities = $75,000 and assets = $100,000
$175,000
$25,000
$50,000
$75,000
46
When an existing product/service is developed to be better than a previous version
Incredible
Revenue
Invention
Innovation
47
A business in the
quaternary
industry
Producers raw materials
Provides information processing services
Provides services such as education
Provides domestic services
48
Which is the correct order of the HR cycle?
Development, acquisition, maintenance, separation
Development, maintenance, acquisition, separation
Acquisition, maintenance, development, separation
Acquisition, development, maintenance, separation
49
When two or more people decide to go into an
unincorporated
business together
Sole trader
Public company
Private company
Partnership
50
Alex wishes to fund his business with equity finance. Which best describes this?
Alex will finance his business through government assistance
Alex will finance his business through loans from a bank
Alex will finance his business through a bank overdraft
Alex will finance his business through his own personal fund
51
When two or more people decide to go into an
incorporated
business together
Partnership
Public company
Sole trader
Private company
52
What is the relationship between risk and return for business?
Higher risks expect lower returns
Lower risks expect no returns
Lower risks expect higher returns
Higher risks expect higher returns
53
What is an oligopoly?
When a few large businesses dominate the market
When businesses try to make their product unique
When one business controls the market
When all businesses sell the same thing
54
Which of the below is an example of an INPUT for a t-shirt?
Packaging boxes
The finished t-shirt
Surf shop
Cotton thread
55
When a business is declining and is almost broke, it is facing...
Maturity
Liquidation
Cessation
External factors
56
Paul employs 24 staff members. What size classification is his business?
Large
Small
Micro
Medium
57
At which point of the cycle are employment and wages are usually high?
Boom
Bust
Depression
Upswing
58
A business in the
quinary
industry
Provides services such as education
Producers raw materials
Provides information processing services
Provides domestic services
59
Which of the following is a contribution of SMEs to the economy?
Can exist in locations where large businesses would not be viable
Produce approximately 50% of all products
Fail at a higher rate than large businesses
Responsible for most of the employment in the economy
60
At which point of the cycle is the economy starting to show signs of slowing down?
Boom
Bust
Downswing
Depression
61
What is an example of a monopoly business?
Australia Post
Woolworths
Big W
Toyota
62
Communication, vision, flexibility and decision-making are all types of:
Management
Controls
Skills
Negative influences
63
Which is a NSW Government tax?
company tax
income tax
fringe benefits tax
payroll tax
64
A narrowly selected target market segment which very particular characteristics
Niche market
Secondary market
Mass market
Primary market
65
S.M.A.R.T. is an acronym for
Specific, Measurable, Achievable, Relevant, Timebound
Social, Manageable, Achievable, Responsible, Testing
Specific, Motivated,Adjustable, Responsive, Targeted
Smart, Moveable, Achievable, Relevant, Timebound
66
Dividing consumers up into groups based on demographic, geographic or behavioural traits
Market separation
Market proportions
Market appropriation
Market segmentation
67
A manager always consults with employees when making decisions and setting targets. This shows...
Diplomatic leadership
Autocratic leadership
Hierarchical leadership
Democratic leadership
68
The costs for the business of providing a good or service
Risk
Choice
Operating expenses
Profit
69
What is a budget?
Another name for a cash flow statement
Another name for a balance sheet
A financial plan of future income and expenses
A financial plan of past income and expenses
70
Which of the following businesses would have limited liability?
Frank's Fresh Fruit
Paul's fine furniture
The Morgan Brothers Bakery
Steel Works Manufacturing Pty Ltd
71
The total amount of money received by a business for a good or service
Operating Expense
Profit
Income
Revenue
72
A juice company has designed a new bottle to market its fruit juice. Which part of the marketing mix is this?
Place
Product
Price
Promotion
73
Which of the following are both examples of voluntary separatiion
Resignation and dismissal
Dismissal and retrenchment
Retirement and resignation
Retrenchment and retirement
74
Which of the following best describes a balance sheet?
Statement of the assets, liabilities and owners equity
Statement of cash flows
Statement of profit or loss of a business
Statement that shows the movement of cash receipts & payment
75
The part of a business report where you comment on what should be done is called
Conclusion
Introduction
Recommendations
Executive summary
76
When a business is forced to close by a court order
Involuntary cessation
Voluntary cessation
77
Which legal requirement restricts business to certain areas?
Fair Trading Act
Patents
Trade Practices Act
Zoning
78
What is a mission statement?
Financial plan for the business to achieve
Ideal future situation for the business
Driving statement about what the business aims to achieve
Hopes and dreams for the company to achieve
79
Which of the following is an advantage of equity finance?
Interest is tax deductible
Never having to repay money received in any way
No fixed repayment schedule
Business partners have control over decisions
80
What does equity finance refer to?
Money obtained from a partner or investor
Money obtained from the owners personal funds
Money obtained through loans
Money obtained from a financial intermediary such as a bank
81
What is a personal goal?
aims to benefit the community
doing what is ethical or right
goals of individual owner(s)
focuses on profit
82
You have the ability to open a second store, since your first store is so successful. Where would this be on a SWOT?
Strength
Weakness
Threat
Opportunity
83
A business in the
primary
industry
Provides domestic services
Producers raw materials
Provides information processing services
Provides services such as education
84
Planning for the next 3 to 5 years is known as
Goal planning
Operational planning
Tactical plnning
Strategic planning
85
Which influence relates to the demographics of people of the area?
Social
Politcal
Geographical
Financial
86
Evaluating performance and taking corrective action is
Leading
Planning
Controlling
Organising
87
What is a monopoly?
When a few large businesses dominate the market
When one business controls the market
When all businesses sell the same thing
When businesses try to make their product unique
88
Which legal structure is unincorporated with unlimited liability?
Public company
Sole trader
Partnership
Private company
89
Total revenue minus total costs equals
Accounts payable
Expenditure
Profit
Accounts receivable
90
The process of developing individuals by offering coaching and modelling acceptable behaviour
Mentoring
Skills
Controlling
Selecting
91
1-2 year plans which work towards the larger overall direction of the business
Financial
Strategic
Operational
Tactical
92
When management presents problems and staff and management work together to make decisions
Autocratic leadership
Authoritarian leadership
Contingency management
Participative leadership
93
If a business has 78 employees, it is classified as:
Large
Micro
Small
SME
94
What must you do when a question asks you to 'discuss'?
Give reasons in favour
Use examples to support the statement
Give reasons for and against
Describe the benefits
95
Using an external source of business to undertake business functions or activities
Management
Entrepreneurship
Outsourcing
Human Resources
96
What does the classical approach to management emphasise?
planning, organising and controlling
leading, motivating and communicating
reacting and responding to change after it occurs
flexibility & adaptation of practices to suit circumstances
97
A business which is
NOT
a different legal entity to its owners gives them
Unlimited liability
Limited liability
98
Which of the following tools would allow you to compare expected financial outcomes with actual?
Budget
Market analysis
SWOT analysis
Break-even analysis
99
Approximately what percentage of businesses in Australia are SMEs?
76
37
94
98
100
Which of the following is
NOT
a stakeholder of a business?
Customers
Someone who has never shopped at your store
Employees
Business competitors
101
The phase when a business has just started and is finding its feet
Maturity
Growth
Establishment
Post-Maturity
102
When an employee is asked to leave the business against their will
Voluntary separation
Involuntary separation
Resignation
Retirement
103
Profit is
Things required to live
The money left after expenses are paid
Expenses incurred as part of running a business
Things you would like to have
104
When an employee is dismissed because there is not enough work to justify paying them
Dismissal
Retirement
Retrenchment
Redundancy
105
What is meant by span of control?
Who reports to who in a business
How many steps are in a hierarchy
How many supervisors a staff member manages
How many staff members a supervisor manages
106
A financial statement which includes gross profit, cost of goods sold and expenses
Budget
Income statement
Balance sheet
Cash flow statement
107
When a business decides to sell shares on the ASX
Partnership
Public company
Sole trader
Private company
108
The individual internal process that directs and sustains a person's behaviour
Motivation
Energy
Autocratic
Effectiveness
109
Skills that allow you to work and communicate with others are what skills?
Internal
Impersonal
Interpersonal
External
110
A business which manufactures furniture is in which industry?
Primary
Tertiary
Quinary
Secondary
111
Cost of Goods Sold = ?
Opening stock - purchases + closing stock
Owner's equity + liabilities
Net profit + gross profit
Opening stock + purchases - closing stock
112
A financial statement which includes assets, liabilities and owner's equity
Budget
Income statement
Balance sheet
Cash flow statement
113
Which of the following items are current assets?
inventory and machinery
cash at bank and inventory
machinery and mortgage
creditors and cash at a bank
114
A low unemployment rate means it is hard to find workers. Where would this be on a SWOT?
Threat
Opportunity
Weakness
Strength
115
What is the name given to extra expenses of having staff such as superannuation, sick leave and training?
Ongoing costs
Legal costs
Extra costs
On costs
