Establishment costs include

costs involved in setting up a business

A disadvantage of a sole trader business is that it has

need to perform a variety of tasks

A disadvantage of a partnership business structure is that

loyalty and authority can be divided

A disadvantage of a public company business structure is that

need to publish annual financial accounts

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VCE small business management Unit 1

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unit 1, area 2 Business Management

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Questions 21

Answers

1
Establishment costs include
day to day running costs
costs involved in setting up a business
2
entrepreneurship is
a and b
buying a patent for a product
a source of business opportunity
the willingness to take business risks
3
How many steps does initial market research have?
3
2
4
5
4
Operating costs include
petrol costs
phone costs
rent
all of these
5
A disadvantage of a franchise is
profits must be shared with franchisor
contracts may be biased in favour of franchisor
a and b
franchisee controls the operations
6
An advantage of a sole trader business is that it has
no partner disputes
complicated paperwork
high establishment costs
tax on business profits
7
Useful business support services include
accountants
personal trainers
b and c
solicitors
8
Business concept development involves
both of these
identifying a target market
neither of these
distributing a product or service
9
An advantage of a partnership business structure is that there are
pooled funds and talent
cannot continue when a partner dies
taxes on business profits
high start up costs
10
When undertaking market research it is important to
come up with a great idea
determine market conditions
put an advert in a newspaper
11
The main motivation behind starting a business is to
be independent
all of these
fill a market need
make a profit
12
Innovation is
improving an existing product or service
both of these
creating a new product or service
13
A disadvantage of a sole trader business is that it has
continues when owner dies
need to perform a variety of tasks
ease of raising finance
a separate legal entity
14
An advantage of a public company business structure is that
a short business life
board of directors have little management experience
shareholders are limited
public finance can be raised
15
Undertaking market research will ensure that a small business owner
has a great idea
satisfies customer tastes
makes lots of money
16
A disadvantage of a partnership business structure is that
loyalty and authority can be divided
partners don't share debts
partners are always friends
suitable partners are easy to find
17
A disadvantage of a public company business structure is that
the business can grow too slowly
need to publish annual financial accounts
information can be withheld from the public
formation costs are too low
18
A business with a separate legal entity is a
sole trader
partnership
private or public company
19
Factors affecting the choice of location include
proximity to customers and suppliers
visibility
complementary businesses
all of these
20
Key performance indicators evaluate
level of customer satisfaction
level of staff satisfaction
all of these
number of sales
21
A franchise can be a good option when
the owner wants own advertising
small quantities can be bought
proven business methods exist
the owner wants to choose own suppliers

VCE small business management Unit 1 Flashcards | StudBud