Stimulus Test (1 Viewer)

[Smile12345]

Hello ...

I had a stimulus test with an article... I found it on http://www.brw.com.au/p/sections/em...hers_bring_it_together_HTR36L8SwspShhgu0WxUIO

Can you help with the following questions I was unsure about?

1. Name the part of the Business Cycle Todae is in and identify three features in the article to support this. 4 marks
I said it was in the 'Growth' Part... Then I said 'Expanded product lines were condimented with a strong and diverse market strategy' and 'common commitment to growth', I had another point but wasn't right... I got 3/4... What else could I have said?

2. Determine the industry sector Todae is in... I said Tertiary Section. This part was ok.
but then...

3. Describe the features of this sector. (6 marks) I said providing a service (1/2 mark) + 1 mark for all the other features I had written. So I received a total 1.5/6. There were no suggestions of what I should have written. What should I have written?

4.Now the question I really bombed out on...Question worth 15marks. The Kahn brothers have decided to expand Todae as a franchise. You, as an emerging entrepreneur, would like to take up this opportunity and have to write a report describing how you would set up the business giving detailed reasons for the choices you make. The choices you will need to discuss are:

• Legal Structure
• Problems and advantages you will have in your first year of operation
• How your business will be classified according to size, geographical spread and industry sector
• The internal and external influences on your business
• The stakeholders in your business

Apparently I misread the question.... There are little ideas of what I was meant to include.
Can someone please help me with an answer the this question please? (What would be worth 15 marks)...
Thanks all for your help in advance.

 

[Examine]

For the third question did you just use the stimulus or did you use your knowledge of the features of the sector provided in the textbook

 

[Smile12345]

For the third question did you just use the stimulus or did you use your knowledge of the features of the sector provided in the textbook

Good to see your response! No I thought I used the knowledge of the features of sector provided in textbook but when I went back there wasn't much for 6 marks. I should have referred to the stimulus?

 

[Examine]

Also I'm not too sure how you could have gone wrong with the report, since it provides to you everything you need to address. The structure which immediately comes to my mind is

Executive Summary

Heading 1 - Legal Structure

Heading 2 - Problems and Advantages you will have in your first year of operation

Heading 3 - Classification of the business

Heading 4 - Internal and external influences

Heading 5 - Stakeholders

Recommendations

 

[Examine]

As I said I'm quite unfamiliar with the Prelim Course for Business Studies so I can't give you specific tips on actual dot-points but rather help you answer in a sense which can maximise your marks.

With that being said would you be able to type up your responses to the question?

 

[Smile12345]

For the third question did you just use the stimulus or did you use your knowledge of the features of the sector provided in the textbook

What could I have said?

 

[Smile12345]

Also I'm not too sure how you could have gone wrong with the report, since it provides to you everything you need to address. The structure which immediately comes to my mind is

Executive Summary

Heading 1 - Legal Structure

Heading 2 - Problems and Advantages you will have in your first year of operation

Heading 3 - Classification of the business

Heading 4 - Internal and external influences

Heading 5 - Stakeholders

Recommendations

I structured my report as you have suggested, but unfortunately it was the content I didn't get right.

 

[Smile12345]

As I said I'm quite unfamiliar with the Prelim Course for Business Studies so I can't give you specific tips on actual dot-points but rather help you answer in a sense which can maximise your marks.

With that being said would you be able to type up your responses to the question?

Yeah, ok. I'll do that within the next couple of days....

Thanks for your help.

 

[Smile12345]

As I said I'm quite unfamiliar with the Prelim Course for Business Studies so I can't give you specific tips on actual dot-points but rather help you answer in a sense which can maximise your marks.

With that being said would you be able to type up your responses to the question?

With Q1 and 3, I've put my answer above. Can you tell me what I should have put to get full marks?

Please get back to me and I'll put up my answer to Q4.

 

[kalifridge]

q3. "The tertiary sector of industry involves the provision of services to other businesses as well as final consumers. Services may involve the transport, distribution and sale of goods from producer to a consumer, as may happen in wholesaling and retailing, or may involve the provision of a service, such as in pest control or entertainment. The goods may be transformed in the process of providing the service, as happens in the restaurant industry. However, the focus is on people interacting with people and serving the customer rather than transforming physical goods."


This is a paragraph I found online detailing the tertiary sector.

"Businesses in the tertiary industry provide a service. Tertiary industry involves
people performing a vast range of services for other people. Examples include
retailers, dentists, solicitors, banks and museums.
Over the past 50 years, the number of businesses and people employed in this
industry sector has grown rapidly, to a point whereby, today, three out of every four
employees, and two out of every three businesses are classified as tertiary. Due to this
increase in numbers, the tertiary sector has been subdivided into two other sectors:
quaternary and quinary"

This is a paragraph from the textbook/


For last question, their choices of legal structure is sole trader - partnership - company - cooperative - trust
soletrader and partnership are unincorporated
company can be private and public and are incorporated.
Their legal structure is a partnership


Partnerships
A partnership is a legal business structure that is owned and operated by between
two and 20 people with the aim of making a profit. A partnership is similar to a sole
trader in that the owner and the business are regarded as the same, that is, there is no
legal entity. Consequently, partnerships also have unlimited liability. Partnerships
have a limit on the number of people allowed to be in the partnership — usually
between two and 20 people, but there are exceptions to this number. Medical practitioners and stockbrokers are allowed up to 50 partners. Veterinarians, architects and
chemists are allowed up to 100 partners and solicitors and accountants up to 400.
A partnership can be made verbally or in writing or by implication, that is, if two
people set up a business together without a legally binding partnership agreement. A
written partnership agreement is not compulsory but it is certainly worthwhile in case
disputes arise.

So maybe talk about how they should have a written agreement, also discuss the advantages and disadvantages
Advantages
• Low startup costs
• Less costly to operate than a company
• Shared responsibility and workload
• Pooled funds and talent
• Minimal government regulation
• No taxes on business profits, only on personal income
• On death of one partner, business can keep going

Disadvantages
• Personal unlimited liability
• Liability for all debts, including partner’s debts, even before the partnership has begun
• Possibility of disputes
• Difficulty in finding a suitable partner
• Divided loyalty and authority

 

[kalifridge]

The most important factors to take into consideration include the following:
• size of the business which is related to total sales
• business’s position on the business life cycle
• number of people involved — both employees and owners
• main activity of the business — the type and level of production
• taxation requirements — taxation minimisation or income splitting
• existing and potential customer base
• availability of finance
• long-term goals and plans
• geographical spread of operation — national, international or transnational
• desire to raise extra capital for expansion
• level of risk — unlimited or limited liability
• need to recruit new staff with specific skills and expertise
• preferences of the owner (or owners) — individual choice
• level of competition — now and in the future.

This is how you can choose what legal structure and refer to them when suggesting a legal structure.

 

[Smile12345]

Thanks heaps kalifridge ... I really appreciate your help...

With question 1, what would be another point you could use from the Article to say it was in the growth stage...

 

[Smile12345]

The most important factors to take into consideration include the following:
• size of the business which is related to total sales
• business’s position on the business life cycle
• number of people involved — both employees and owners
• main activity of the business — the type and level of production
• taxation requirements — taxation minimisation or income splitting
• existing and potential customer base
• availability of finance
• long-term goals and plans
• geographical spread of operation — national, international or transnational
• desire to raise extra capital for expansion
• level of risk — unlimited or limited liability
• need to recruit new staff with specific skills and expertise
• preferences of the owner (or owners) — individual choice
• level of competition — now and in the future.

This is how you can choose what legal structure and refer to them when suggesting a legal structure.

Yes, ok... I'm going to rewrite a response to this question using your suggestions...THanks.

 

[kalifridge]

TABLE 2.1 Establishment phase: main features and associated challenges
Feature Challenges
Alternative names Start-up, birth, beginning, commencement.
Goals Survival, and setting a firm foundation for future growth.
Sales Normally begin slowly and are somewhat erratic.
Marketing Highlight product advantages by accentuating the product’s strengths.
Undertake inexpensive promotion strategies.
Profit Usually slow to begin with, occasionally a loss. Sometimes all the profits are put
back into the business to ensure its survival.
Financial
management
Greatest source of start-up capital is from the owner’s personal savings. This can
be supplemented with a loan from a financial institution although such finance is
often difficult to obtain because of the high risks involved.
Cash flow Sometimes erratic, with a period of constant cash outflow in the early stages.
Costs Very high fixed costs. Major cost items include premises, equipment, raw
materials and insurance.
Customers Establishing a customer base large enough to sustain future viability is
important. Need to develop a positive relationship with customers. Attempt to
accurately forecast customers’ needs.
Management Informal, with all decisions being made by just one or two people. Decisions are
often made ‘on the run’.
Employees Normally only a few. Owner establishing work routines and building up relationships.
Failure rate Very high, up to 33 per cent within the first year of trading.
Main problems Lack of money with possible cash flow shortages
Risk level Extremely high especially within the first few months. High degree of uncertainty.
Business entity Usually sole trader or partnership.

The problems with starting up a business in the first year is that it takes a long time to get started up, you will not have much of a profit or customer base in the first year. You will need to start up everything give yourself a name and get it known to go into the growth stage which may take a few years.

 

[kalifridge]

"Danin rebranded the company as Todae and began expanding its product offering as well as it’s online presence" could refer to growth

 

[Smile12345]

TABLE 2.1 Establishment phase: main features and associated challenges
Feature Challenges
Alternative names Start-up, birth, beginning, commencement.
Goals Survival, and setting a firm foundation for future growth.
Sales Normally begin slowly and are somewhat erratic.
Marketing Highlight product advantages by accentuating the product’s strengths.
Undertake inexpensive promotion strategies.
Profit Usually slow to begin with, occasionally a loss. Sometimes all the profits are put
back into the business to ensure its survival.
Financial
management
Greatest source of start-up capital is from the owner’s personal savings. This can
be supplemented with a loan from a financial institution although such finance is
often difficult to obtain because of the high risks involved.
Cash flow Sometimes erratic, with a period of constant cash outflow in the early stages.
Costs Very high fixed costs. Major cost items include premises, equipment, raw
materials and insurance.
Customers Establishing a customer base large enough to sustain future viability is
important. Need to develop a positive relationship with customers. Attempt to
accurately forecast customers’ needs.
Management Informal, with all decisions being made by just one or two people. Decisions are
often made ‘on the run’.
Employees Normally only a few. Owner establishing work routines and building up relationships.
Failure rate Very high, up to 33 per cent within the first year of trading.
Main problems Lack of money with possible cash flow shortages
Risk level Extremely high especially within the first few months. High degree of uncertainty.
Business entity Usually sole trader or partnership.

The problems with starting up a business in the first year is that it takes a long time to get started up, you will not have much of a profit or customer base in the first year. You will need to start up everything give yourself a name and get it known to go into the growth stage which may take a few years.

Thanks again... Is this from "Business Studies in Action" ?

 

[Smile12345]

"Danin rebranded the company as Todae and began expanding its product offering as well as it’s online presence" could refer to growth

Yes, it could... Thanks heaps... You've helped me so much..

 

[kalifridge]

It would be sme small-medium enterprise
Small, usually local area; not dominant in
the industry

Medium sized, due to dominance within
a geographic region; some market
dominance

It is tertiary industry

external influences is stuff like law/government, trade unions, carbon footprint, competitors, economy

internal influences is price, employees, company policies, managers, management styles

A stakeholder is any group or individual who has an interest in or is affected by the activities of a business.

Customers
• Quality products
• Fair prices
• Service during and
after sales
• Safety

Employees
• Fair pay and conditions
• Provide safe working
environment
• Access to training
and development

Shareholders
• Provide information
about the business’s
performance
• Produce an annual
report
• Manage the funds so
a reasonable return
is paid

Suppliers / creditors
• Pay debts
• Act ethically
and honestly

Governments
• Pay taxes
• Abide by the laws

Environment
• Consider impact on
environment
• Care and preservation
of the environment
• Sound and responsible
environmental
management

Society / general public
• Fair and honest
business practices
• Ethically responsible
decisions

 

[kalifridge]

Yes, it could... Thanks heaps... You've helped me so much..

No worries

 

[Smile12345]

No worries

I do appreciate it... Especially when the marks for my other subjects are up there (with good teachers) and how I can succeed...

Can you share any tips so I can get 20/20's in my business reports, essays, how to learn and study content and so forth.... Please?