� Topic 1: Nature of Business
1. What types of income can employees earn?
Wages, salaries, bonuses, overtime, commissions, and/or fringe benefits.
2. What type of income do business owners earn?
Profits.
3. What type of income do shareholders receive?
Dividends.
4. What does 'quality of life' mean in a business context?
A combination of material and non-material benefits that improve individual wellbeing.
5. What roles do businesses play in society?
Profit, employment, incomes, choice, entrepreneurship, wealth, innovation, quality of life.
6. How are businesses classified by size?
Micro (1–4), Small (5–19), Medium (20–199), Large (200+ employees).
7. How are businesses classified by geographical spread?
Local, national, global.
8. What are the five industry sectors used to classify businesses?
Primary, secondary, tertiary, quaternary, quinary.
9. What is the role of the primary industry sector?
Collection of natural resources (e.g., farming, fishing, mining).
10. What is the role of the secondary industry sector?
Processing raw materials into finished or semi-finished products.
11. What is the role of the tertiary industry sector?
Providing services to consumers (e.g., retail, hospitality).
12. What is the role of the quaternary industry sector?
Transfer and processing of information and knowledge (e.g., IT, education).
13. What is the role of the quinary industry sector?
Services traditionally performed in the home, including unpaid and paid care.
14. How are businesses classified by legal structure?
Sole trader, partnership, private company, public company, government enterprise.
15. What are unincorporated businesses?
Businesses where the owner is legally responsible (e.g., sole trader, partnership).
16. What are incorporated businesses?
Companies with separate legal identity from their owners (e.g., private, public).
17. What does unlimited liability mean?
The owner is personally responsible for the business’s debts.
18. What is a government enterprise?
A business owned and operated by the government.
19. What factors influence choice of legal structure?
Size, ownership, finance.
20. What is the acronym for external influences on a business?
GEM SPLIT FC (Geographic, Economic, Markets, Social, Political, Legal, Institutional,
Technological, Financial, Competition).
21. What is the acronym for internal influences on a business?
PLMBR (Product, Location, Management, Business culture, Resources).
22. What are geographic influences on business?
Australia’s location, proximity to Asia-Pacific markets, demographics.
23. What are economic influences on business?
The business cycle — boom and bust phases.
24. What are characteristics of a boom economy?
High consumer confidence, low unemployment, increased production.
25. What are characteristics of a recession (bust)?
Low consumer confidence, high unemployment, reduced spending.
26. What are social influences on business?
Changing demographics, values, environmental expectations, diversity.
27. What are technological influences on business?
New production techniques, automation, communication improvements.
28. What are legal influences on business?
Laws relating to OHS, fair trading, anti-discrimination.
29. What are institutional influences on business?
Government bodies (ASIC, ACCC), trade associations, unions.
30. What are competitive influences on business?
Number of competitors, marketing strategies, product differentiation.
31. What are marketing influences?
Consumer needs, advertising, demand trends.
32. What are internal influences on a business?
Product, location, resources, management style, business culture.
33. What are stakeholders in a business?
Individuals or groups affected by or having an interest in business activity.
34. Who are internal stakeholders?
Owners, managers, employees.
35. Who are external stakeholders?
Customers, suppliers, community, environment, government.
36. How do stakeholders influence business?
Through demands for ethical conduct, product quality, wages, sustainability.
37. What is business (corporate) culture?
Shared values, beliefs, expectations within a business.
38. What is the business life cycle?
Stages of business growth: establishment, growth, maturity, post-maturity.
39. What happens during establishment?
High setup costs, low revenue, need for customer base.
40. What challenges are faced in growth?
Overextension, maintaining quality, managing cash flow.
41. What happens in maturity?
Stable sales, efficiency focus, increased competition.
42. What are possible post-maturity outcomes?
Renewal, steady state, decline.
43. What causes business decline?
Poor management, inadequate cash flow, failure to meet customer needs, increased
competition.
44. What is voluntary cessation?
When an owner decides to close the business.
45. What is involuntary cessation?
When a business is forced to close due to financial failure or legal action.
46. What is liquidation?
Process of selling assets to pay debts when a company is closing.
47. What are the three main causes of business failure?
Inadequate cash flow, poor strategic management, trading losses.
48. What are common factors contributing to failure?
Bad location, lack of demand, poor planning, pricing errors, uncontrolled growth.
� Topic 2: Business Management
1. What are the features of effective management?
Planning, organising, leading, controlling, and adapting to change.
2. What is planning in management?
Setting objectives and deciding how to achieve them.
3. What is organising in management?
Arranging resources to implement plans and achieve objectives.
4. What is leading in management?
Motivating and influencing people to work towards goals.
5. What is controlling in management?
Monitoring performance and making adjustments to ensure objectives are met.
6. What are the 8 management skills?
Problem-solving, decision-making, flexibility, interpersonal, communication, strategic
thinking, vision, reconciling stakeholder interests.
7. What is strategic thinking?
Seeing the business as a whole and planning for its future.
8. What is vision in management?
Providing a shared direction or goal for the business.
9. What is the problem-solving process?
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6.
Identify the problem
Gather information
Develop solutions
Analyse solutions
Choose and implement
Evaluate
10. What is decision-making?
Choosing the best course of action from alternatives.
11. What is flexibility in management?
The ability to adapt to changes in the environment or workforce.
12. What are interpersonal skills?
Understanding, motivating, and working with others effectively.
13. What are communication skills?
The ability to convey ideas clearly and understand others.
14. What does reconciling stakeholder interests mean?
Balancing the needs of different groups to minimise conflict.
15. What are common stakeholder conflicts?
Employees want high wages, customers want low prices; society wants sustainability,
shareholders want profits.
16. Why is stakeholder conflict resolution important?
Reduces turnover, improves morale and reputation.
17. What are the business goals?
Profit, market share, growth, share price, social, and environmental.
18. What is market share?
The percentage of total sales a business has in its market.
19. What is the goal of business growth?
To expand market presence, increase revenue, and build brand recognition.
20. What is the goal of increasing share price?
To satisfy shareholders and attract investors.
21. What are social goals in business?
Community service, fair employment, ethical operations.
22. What are environmental goals in business?
Sustainable operations, reducing waste, and ethical sourcing.
23. What is staff involvement?
Actively involving employees in decision-making and improvement processes.
24. What does TIMM stand for?
Training, Innovation, Mentoring, Motivation.
25. What is training in business?
Teaching employees the skills needed to improve performance.
26. What is innovation in staff involvement?
Encouraging employees to contribute creative ideas.
27. What is mentoring?
Experienced employees guiding and supporting others.
28. What is motivation?
Energising and encouraging employees to achieve goals.
29. What is labour productivity?
The amount of output produced per employee in a given time.
30. What is the classical-scientific approach?
Focuses on planning, organising, and controlling work to improve productivity.
31. Who introduced scientific management?
Frederick W. Taylor.
32. What is the classical-bureaucratic approach?
Emphasises structure, hierarchy, and clearly defined roles.
33. What are features of classical management structure?
Rigid hierarchy, top-down control, specialised tasks.
34. What are the advantages of the classical approach?
Clear structure, efficient decisions, increased productivity.
35. What are the disadvantages of the classical approach?
Boredom, resistance to change, low job satisfaction.
36. What is autocratic leadership?
Manager makes decisions alone with no employee input.
37. What is the behavioural approach to management?
Focuses on employees as individuals and encourages participation.
38. What is the Hawthorne effect?
Workers improve performance when they feel valued.
39. What are features of the behavioural approach?
Democratic leadership, team involvement, flat structure.
40. What is democratic (participative) leadership?
Managers include staff in decisions and maintain two-way communication.
41. What are advantages of the behavioural approach?
Improved morale, better relationships, increased innovation.
42. What are disadvantages of the behavioural approach?
Slow decision-making, conflict, less control.
43. What is a flatter organisational structure?
Fewer management layers, broader spans of control, better communication.
44. What is the contingency approach?
Adjusting management styles and structure based on situation.
45. What is the role of the operations function?
Transforming inputs into outputs (goods or services).
46. What is the role of the marketing function?
Identifying and meeting consumer needs through the marketing mix.
47. What is the role of the finance function?
Managing money, reporting performance, ensuring profitability.
48. What is the role of human resources?
Managing people through recruitment, training, and development.
49. What are the three stages of the operations process?
Inputs, transformation, outputs.
50. What are inputs in operations?
Raw materials, labour, capital, information.
51. What is the transformation process?
Converting inputs into finished goods or services.
52. What are outputs in operations?
The final product delivered to consumers.
53. What are the three types of planning?
Strategic (3–5 years), Tactical (1–2 years), Operational (short-term).
54. What are the three levels of management?
Top, middle, frontline.
55. What are the steps in the organising process?
1. Identify work activities
2. Group activities
3. Assign tasks and authority
56. What are the steps in the control process?
1. Establish standards
2. Measure performance
3. Take corrective action
57. What is quality management?
Ensuring products meet customer expectations through QC, QA, or TQM.
58. What is quality control (QC)?
Inspecting products at various stages to detect defects.
59. What is quality assurance (QA)?
Systematic prevention of defects through procedures and standards.
60. What is Total Quality Management (TQM)?
Continuous business-wide commitment to improvement.
61. What is continuous improvement?
Ongoing pursuit of higher standards.
62. What are quality circles?
Small employee groups who meet to solve quality issues.
� Topic 1: Nature of Business – Flashcards with Acronyms
✳️ NEW / UPDATED: PIECE WIQ
Q: What are the roles of business in society? (Use acronym)
A: Use PIECE WIQ:
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Profit
Incomes
Employment
Choice
Entrepreneurship
Wealth
Innovation
Quality of life
� UPDATED: External Influences — GEM SPLIT FC
Q: What are the external influences on a business? (Use acronym)
A: Use GEM SPLIT FC:
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Geographic
Economic
Markets
Social
Political
Legal
Institutional
Technological
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Financial
Competitive situation
� UPDATED: Internal Influences — PLMBR
Q: What are the internal influences on a business? (Use acronym)
A: Use PLMBR:
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Product
Location
Management
Business culture
Resources
✳️ NEW: Causes of Business Decline — FROG CAPS
Q: What are common causes of business failure or decline? (Use acronym)
A: Use FROG CAPS:
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Failure to plan
Rising competition
Overextension
Growth mismanagement
Cash flow issues
Adaptation failure
Pricing errors
Strategic mismanagement
� Topic 2: Business Management – Flashcards with
Acronyms
� UPDATED: Staff Involvement — TIMM
Q: What are the four main methods of staff involvement? (Use acronym)
A: Use TIMM:
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Training
Innovation
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Mentoring
Motivation
� UPDATED: Functions of Management — LCM
Q: What are the key functions of management in the classical approach? (Use acronym)
A: Use LCM:
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Leading
Controlling
Managing/Organising
✳️ NEW: Management Skills — VISCOPID
Q: What are the skills of management? (Use acronym)
A: Use VISCOPID:
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Vision
Interpersonal
Strategic thinking
Communication
Organisational flexibility (adaptability)
Problem-solving
Interest reconciliation (stakeholders)
Decision-making
✳️ NEW: Business Goals — GEMS PS
Q: What are the main business goals? (Use acronym)
A: Use GRESSP:
 Growth
 Environmental
 Market Share
 Share price
 Profit
- Social