Area of Study 1 - SAC Revision
2016 BUSINESS MANAGEMENT YEAR 11 – UNIT 1 REVISION FOR SAC Area Of Study 1 – Introducing Business Thursday 11th February OUTCOME 1 TASK DETAILS: Key Knowledge: • Features of organisations including for profit and not-for-profit organisations; • Objectives of different types of organisations; • Distinctions between small, medium and large businesses; • The contribution of small business to the economy; • The internal and external (operating and macro) environments of a business; • Business ethics and socially responsible management - impact on various stakeholders. Key Skills: • Accurately use management terms; • Recognise and classify types of business; • Acquire and exchange business information and ideas; • Research aspects of business management using print and online sources; • Apply business management knowledge to practical and/or simulated business situations; • Analyse business information and data. In completing the assessment task you must be able to demonstrate an understanding of the key knowledge and key skills for Area of Study 1. The test has two sections: Section A: True or False (5 marks) Section B: Multiple Choice Questions (5 marks) Section C: Short-answer questions (20 marks) Revision topics • Definitions • Franchises – characteristics, examples, pros and cons • Business environments (internal, operating and macro) and elements of each • Charities and foundations • Small business contributions to the economy • Ethics and corporate social responsibility • Characteristics of small, medium and large organisations • Objectives of small business (i.e. personal, policy, profit)
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Section A: True or False Write True or False in Question
True/False
1 The achievement of social objectives such as those related to the environment or community service is relevant to a not-for-profit organisation but not relevant to a for-profit organisation. 2 A micro business will always employ fewer than five people.
3 An organisational stakeholder has, by definition, a direct or vested interest in the activities of that organisation. 4 A small business has some control over factors in the macro environment that may affect it (e.g. the economy). 5 A business that employs 80 people will always be classified by the Australian Bureau of Statistics as being medium to large. 6 The level of independence in decision-making is the main criteria for determining the size of a business. 7 An advantage of owning a franchise is that you can be very creative and flexible in how you run your business.
Section B: Multiple-choice questions Circle the most correct answer 1. A not-for-profit organisation does not: A
focus on providing a specific service to the community.
B
have paid employees working for it.
C
distribute dividends to shareholders.
D
establish and work towards the achievement of financial objectives.
E
make a significant contribution to the Australian economy.
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2. An organisational mission statement: A
is usually the same from one organisation to the next.
B
aims to reflect the individual organisation’s purpose and reason for being.
C
should be kept top secret in order to prevent it being stolen.
D
is less important for a public sector organisation than a private sector organisation.
3. Which of the following organisational performance indicators would be best to use when assessing the level of social responsibility of an organisation? A
net profit
B
number of sales
C
market share
D
level of waste/emissions generated
4. Which statement is incorrect? A
more than 95 per cent of Australia’s private sector businesses are classified as being small by the Australian Bureau of Statistics
B
governments at both federal and state levels in Australia have Ministers and government departments responsible for looking after the needs of small business
C
less than 65 per cent of Australian small businesses are home based
D
the contribution to the Australian economy of small business is both significant and important
5. An online retailer that employs 22 part-time employees would be classified by the Australian Bureau of Statistics as being: A
small.
B
medium.
C
micro.
D
large.
6. Chanel’s Pty Ltd is a cafe with three full-time and 15 part-time employees. This business would be classified by the Australian Bureau of Statistics as: A
small.
B
medium.
C
large.
D
micro.
7. A public sector organisation will: A
always have a primary aim of making a profit.
B
sometimes is government owned.
C
is just another name for a charity such as the Australian Red Cross.
D
may be converted into a private sector organisation though a process called ‘privatisation’.
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8. The degree of control the managers of a small business have over the operating environment of the business would be: A
none whatsoever.
B
minimal as some influence only can be exerted over the stakeholders from the operating environment.
C
significant.
D
total.
9. During a period of economic downturn or recession: A
unemployment rises and people spend less.
B
employment rises and people spend less.
C
unemployment falls and people spend less.
D
employment falls and consumer spending increases.
10. Stakeholder groups from the macro environment of a small business would include all of the following: A
government, employees, customers and the wider community.
B
employees, unions, management and government.
C
government, suppliers and the wider community.
D
government, the wider community and the Australian Taxation Office.
11. Which of the following pressures on a small business selling jewellery would be classified as coming from the operating environment of the business? A
the government introduces a new tax on retail jewellery sales
B
employees of the business ask for a pay rise
C
another jewellery store in the same locality reduces its prices and offers a new line of jewellery
D
a civil war breaks out in a number of Pacific Island countries, severely limiting the availability of pearls farmed in the area
12. Which of the following is an example of a micro business? A
a home-based business selling handmade jewellery
B
a Subway outlet
C
an IGA supermarket
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Section C: Short-answer questions Write your answers in the lined space provided. 1. List the key differences between a not-for-profit and a for-profit organisation. _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________
2. List the factors of the Macro environment. _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________
3. Define the term ‘stakeholder’. _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________
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4. Define the term ‘Internal Environment’. _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________
5. Define, and give an example of a, long-term financial business objective _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________
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Extra Work Space If Required. _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________
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