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Questions and Answers
What impact does financial deregulation have on businesses?
What impact does financial deregulation have on businesses?
Which of the following is an example of legal influences on business operations?
Which of the following is an example of legal influences on business operations?
How does multiculturalism specifically influence entrepreneurial opportunities?
How does multiculturalism specifically influence entrepreneurial opportunities?
What role does government zoning play in business operations?
What role does government zoning play in business operations?
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What is one consequence of globalisation on local businesses?
What is one consequence of globalisation on local businesses?
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Which business structure typically involves only one owner and allows for complete control but does not have perpetual succession?
Which business structure typically involves only one owner and allows for complete control but does not have perpetual succession?
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What economic condition is characterized by high levels of consumer confidence, decreased unemployment, and increasing asset values?
What economic condition is characterized by high levels of consumer confidence, decreased unemployment, and increasing asset values?
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Which type of macroeconomic policy primarily affects the economy through adjustments in government spending and taxation?
Which type of macroeconomic policy primarily affects the economy through adjustments in government spending and taxation?
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What is a primary goal of deregulation in financial markets, which began in 1983?
What is a primary goal of deregulation in financial markets, which began in 1983?
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Which of the following is NOT considered an external economic influence on businesses?
Which of the following is NOT considered an external economic influence on businesses?
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Study Notes
Privatisation of Commonwealth Bank of Australia (CBA)
- Financial deregulation has increased competition within the financial industry, allowing businesses to source funds from international banks.
- Various demographics, such as Australia's aging population, dictate the target markets for businesses.
- Globalisation has facilitated trade by removing barriers between nations, expanding competition on a global scale.
Social Influences
- Multiculturalism fosters product diversity and entrepreneurial opportunities, such as ethnic restaurants that cater to specific communities.
- Unrestricted overseas exportation enhances market access for businesses targeting international stakeholders.
Legal Influences
- Government regulations protect consumers and promote workplace health and safety, addressing areas like Work Health and Safety (WHS), taxation, and discrimination.
- The Competition and Consumer Act 2010 reinforces competition and consumer protection laws.
Political Influences
- Taxation policies, including Goods and Services Tax (GST), influence business operations.
- Government roles encompass setting operational ground rules and ensuring environmental guidelines through regulations like the Carbon Tax.
- Local, state, and federal governments are involved in regulating business through zoning, health regulations, and taxation.
Institutional Influences
- Regulatory bodies are established to monitor business actions, such as sole traders and companies.
- Different business structures include sole traders with unlimited liability and government-owned entities.
- Privatisation occurs when government businesses are sold to the private sector, exemplified by companies like Qantas and Telstra.
Factors Influencing Legal Structure Choices
- Business size and ownership determine by control and finance availability, influencing the decision to be a sole trader or a partnership.
- Governments consider the most appropriate legal entity when privatising businesses previously owned by the government.
Economic Influences
- Credit availability and disposable income levels affect consumer spending behavior.
- Economic cycles impact the overall economic climate, categorized into upswing phases (boom and expansion) and contraction phases (recession and depression).
Macroeconomic Policies
- Government policies regulate economic activity to prevent harmful booms or contractions.
- Monetary policy governs interest rates to stimulate or regulate growth.
- Fiscal policy is concerned with government spending and taxation impacts on economic growth.
Financial Influences
- Deregulation began in 1983, removing government restrictions in financial markets, leading to the introduction of new products and services.
- Market challenges include adapting to market shifts and achieving growth through new acquisitions.
Business Decline and Cessation
- Decline manifests through loss of market share, profit falls, and product obsolescence.
- Cessation can arise from internal factors like poor management or external pressures such as competition or natural disasters.
Types of Business Cessation
- Voluntary Factors: Owner’s choice due to lack of profitability or change in investment focus.
- Involuntary Factors: Forced cessation due to creditors’ actions or bankruptcy.
- Processes include Bankruptcy (sale of assets to repay debts), Voluntary Administration (independent management intervention), and Liquidation (selling company assets to pay creditors).
Insolvency
- Insolvency occurs when a company cannot meet its debt obligations.
- Two forms of liquidation include creditors' voluntary liquidation and involuntary liquidation, which requires intervention by a liquidator to manage a company’s financial affairs.
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Description
Test your knowledge on the impacts of financial deregulation and globalisation on businesses. This quiz explores how demographic factors, global trade, and multiculturalism shape competition and product diversity. Dive into the intricacies of these influences and their significant role in modern business strategies.
