3.4,5, 6 – Flashcards
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Explain the personal qualities shared by successful small business owners.
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Expertise, marketing, entrepreneurship, determination, confidence, cordiality and humility.
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List five areas in which a small business owner must have detailed knowledge.
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Marketing, management, human resources, finance and the law.
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Explain the importance of seeking additional advice to ensure the successful running of a small business.
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Without it, it becomes one of the leading reasons a small business deteriorates. These external sources can provide expertise in areas the small business owner may not have.
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List and describe four sources that small business owners may turn to for advice.
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Accountants - They are experts in providing advice on the financial stability. Lawyers - They are experts in everything legal, able to help you in any legal predicament. Bank Managers- They can provide advice on business finance. TAFE courses - they can address and provide specific aspects of running a small business.
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List the issues that must be addressed in a comprehensive business plan.
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Running costs, establishment costs and an analysis of weaknesses.
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Explain how a trading firm earns profit.
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They sell anything marked up from the cost price.
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Explain how a service firm earns profit.
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They sell time and labour to customers.
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Suggest two reasons why manufacturing firms sell predominantly to trading firms rather than to the general public.
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They are being paid in advance by a business to produce for them.
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Suggest one reason why manufacturing firms may open a factory outlet to sell direct to the public.
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To provide a cheaper alternative that might sell more, possibly achieving a slightly better profit.
