1. Explain three elements of a business plan.

setting vision and mission, financial plan, description of business

2. Explain two ways of “adding value”.

branding, developing package

3. Explain 2 examples of functional areas having to cooperate and coordinate.

functional area 안했는데..
working as a team - divide a work into the number of member
recruitment - employ new workers to increase efficiency

4. Define the chain of production.

various stages includes from producing materials to selling goods

5. How does intrapreneurship differ from entrepreneurship?

Intraprenuers are to innovate within a business with less risk and entrepreneurs are to build
their own business with more freedom.

6. Identify 4 reasons for starting a business.

-for profit
-for awareness/reputation
-personal interest, satisfaction
-for career

7. Identify 4 problems a starting business may face.

-unemployment
-financial problem
-low R&D
-low customer loyalty

8. Explain how economic changes can hurt a company.

If inflation occurs a company should afford higher cost and it will lead to low profit.

9. Why do many “product” businesses try to provide services?

to emphasize the benefits of using their company

10. Explain a reason companies try to merge vertically and horizontally.

to increase market share and reduce competition

11. Explain 2 ways businesses in the private sector and public sector differ.
-private sector is owned by individuals and public sector is owned by the government
-private sector is aimed to make profit and public sector is aimed to provide socially benefit
goods

12. When would a company be better as a sole trader rather than a partnership?
when a person is very obstinate

13. Define unlimited liability.

each owner of a business can be held personally liable for the debts of the organization

14. How could a business benefit from having limited liability?

members can have more flexibility because there would be an agreement about profit
distribution

15. Why might a business decide to not go public?

to make own profit, public company is aimed to make socially benefit goods

16. Define non-profit organizations.

organized groups which have purpose to provide social/public benefit, not aiming to
generate profit

17. Identify 2 main objectives of non-profit organizations.

-to break even and maximize cash flow
-to satisfy governance requirement

18. Explain one advantage and one disadvantage of public private partnerships.
adv: reduce full life -cycle cost including tax
disadv: no enough guideline for PPP and it will lead to limitation of projects

19. Identify 2 disadvantages of partnerships.

-have to share profit with partners including loss
-might be emotional conflict between partners

20. Define mission statement.

explanation of the organization's reason for existence

21. Define vision statement.

description of of mental image and ideal state that organization wishes to achieve

22. How can a business use its mission statement and vision statement to enhance
business?
help a business to make clear communication with proper direction/value

23. Explain one advantage of having a mixture of long term and short term objectives.
it can be critical strategy for business success because long term objectives can not be
achieved without achievement of short term objectives

24. “Business should proactively utilize Ansoff Matrix.” Justify your opinion with examples.
Ansoff Matrix is used to analyse and plan business strategies for growth. It is a simple way
to make analysis and helps to classify and evaluate strategic choices. For example, Coca
cola uses ansoff matrix to assess the level of risk. They tried to release new Coca shirts, but
according to ansoff matrix, it will require a lot of cost for product development which can lead
to loss. Therefore, Coca cola evacuated from the cloth market. To sum up, business will gain
more advantages by utilizing the ansoff matrix.
25. Explain one advantage and one disadvantage of ethical behaviour.
adv: attract more investors to a business
disadv: high cost / ex) avoid polluting environment

26. What are advantages of a social audit?

-encourage social participation
-increase efficiency of local projects

27. Explain two ways changes in society caused changes in business.

-pressure groups can argue business to stop to pollute environment, so a business have to
change the method of production
-decrease in population can cause unemployment of business