31 Questions
What is the core function of a business according to the text?
To transform inputs into outputs and add value to raw materials
What is the key difference between goods and services according to the passage?
Goods are tangible while services are intangible
Which of the following factors does the text NOT mention as influencing the value of a service?
The brand reputation of the service provider
What is the key difference between goods and services according to the passage?
Goods are tangible while services are intangible
Which of the following is NOT mentioned in the text as a factor influencing the value of a service?
The price of the service
What is the purpose of adding value to a product or service?
To make the product or service more desirable to customers
What is a major advantage of being a Sole Trader?
Complete control
Which type of business structure has the disadvantage of needing to carry all losses?
Sole Trader
What distinguishes a Private Company from a Public Company in terms of liability?
Limited liability
Which type of business structure has the advantage of shared workload and responsibility?
Partnership
What characteristic of a Sole Trader makes it less expensive to operate compared to other structures?
Complete control
Which type of business structure has the advantage of growth potential?
Private Company
What is the main function of a liquidator?
Investigating and reporting financial affairs to creditors
Who can initiate the liquidation process of a company?
A company director or shareholder, creditor, or ASIC
What happens to a company's debts during liquidation?
They are determined and paid to creditors
Who is responsible for scrutinizing the reasons behind a company's failure during liquidation?
The liquidator
What is the final step that a liquidator takes in regard to a company during liquidation?
Dissolve or deregister the company
When can ASIC be involved in the liquidation process of a company?
When there are possible offences related to the company
Which of the following is NOT a characteristic of a complex decision-making process in a large business?
Faster implementation due to fewer layers of management
Which of the following is an example of a global business or transnational corporation (TNC)?
Woolworths
What is the MAIN importance of small businesses to the Australian economy, according to the text?
Contribution to tax supporting essential public services and infrastructure
Which of the following is a characteristic of a local business, according to the text?
Has a very restricted geographical spread, serving the surrounding areas
Which of the following is NOT mentioned in the text as an importance of small businesses to the Australian economy?
Helps develop larger cities and metropolitan areas
What is the main difference between a national business and a global business/transnational corporation (TNC), according to the text?
A national business operates within just one country, while a global business/TNC has a home base in one country but sells its products in other countries
Which of the following is NOT a type of resource mentioned in the text?
Natural resources
Which management style is associated with increased positivity, creativity, and productivity?
Democratic management style
What is the main challenge businesses face during the Growth stage of the business life cycle?
Expanding too rapidly
What percentage of businesses fail within the first year of trading during the Establishment stage?
33%
What is the main difference between Voluntary Administration and Liquidation?
Voluntary Administration involves the appointment of an independent administrator, while Liquidation involves converting assets into cash.
Which of the following is a strategy businesses can use during the Maturity stage to gain a competitive advantage?
Gain a competitive advantage by getting into niche markets
What is the main factor contributing to business decline and cessation according to the text?
All of the above
Test your knowledge on concepts related to the production and service industry, including conversion, value adding, final goods, perishable goods, durable goods, and services.
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