UNIT 1 BUSINESS MANAGEMENT

EXAM REVISION BOOKLET

THIS BOOKLET CONTAINS:

-

Revision Sheet
Study Design
Task Words
PowerPoint presentations or summaries of chapters covered
Practice questions
Practice exam

REVISION SHEET
EXAM DETAILS:
-

67 marks
90 minutes writing time + 5 minutes reading time
3 sections
o Multiple choice (some with statements and fill in sections)
o Short answer
o Case study (answering questions based on provided stimulus material)

TOPICS COVERED/ KEY POINTS:

CHAPTER
CHAPTER 1: Business
Organisations

CHAPTER 2: Small Business in

Australia

CHAPTER 3: Business
Environments

CHAPTER 4: Major Decision

making prior to starting a small
business

KEY KNOWLEDGE
What is an organisation?
Differences between organisations (size, nature,
form of legal ownership & market share)
For Profit and Not-for-profit
Financial and Social Objectives
What is a small business?
How small businesses help the economy? What do
they provide?
Size (micro, small, medium, large)
Characteristics (Table 2.2)
Business activity sectors (primary, secondary,
tertiary, quaternary, quinary)
External environment (definition and elements)
Internal environment (definition and elements)
Stakeholder definition
Table 3.1 (know 5 stakeholders and their interests
and issues)
Marco & Operating environments
Motivation behind starting a small business
Personal skills and qualities for small business
success
Starting from scratch, buying an existing business
or buying into a franchise (advantages and
disadvantages between them)

CHAPTER
CHAPTER 5: Business Support
Services

CHAPTER 6: Importance of
Business Planning

CHAPTER 7: Major Planning

decisions throughout the life
of a small business

CHAPTER 8: Ongoing
evaluation of small business

CHAPTER 10: Management of

staff

KEY KNOWLEDGE
Formal Support (3 examples)
Business Incubators (definition)
Business Mentor (pg 81 definition)
Start-up (definition)
From the above 3 points know the importance and
how the above points helps in the success of the
business (so the role that they play)
What is planning?
Steps in planning
Levels of planning (strategic, tactical, operational)know the features and the time frame (figure 6.4
pg 91)
Mission (4 elements- 4 dot point on pg 93) and
vision statement
Financial plan (importance- pg 100)
Define social responsibility, Occupational Health &
Safety, Employment Laws (the framework in which
they govern the business to make decisions- eg:
what do they make the business do?)
Give 2 examples of employment laws
Financial planning (pg 119-120) Table 7.2
Occupational Health & Safety implications (link to
management of staff)
Why businesses fail?
Efficiency
Effectiveness
Difference between efficiency and effectiveness
Key Performance Indicators (definition)
Benching (definition)
Table 8.1 pg 132-133
Table 8.2 pg 137
Know 5 example from the above 2 tables, and how
this aids in the evaluation of the business
Define employee, job analysis
Employment arrangements
Induction and training
Occupational Health & Safety (pg 173)- this is a link
to Chapter 7

UNIT 1: SMALL BUSINESS MANAGEMENT

Small rather than large businesses make up the large majority of all businesses in the
Australian economy. It is the small business sector that provides a wide variety of goods and
services for both consumers and industries, such as manufacturing, construction and retail.
This, combined with employment opportunities, makes the small business sector a vital
component in the success, growth and stability of Australia. Small businesses are tangible to
students as they are visible and accessible in daily life. This unit provides an opportunity for
students to explore the operations of a small business and its likelihood of success.
AREA OF STUDY 1- INTRODUCING BUSINESS
In this area of study, students examine the characteristics of a range of businesses and their
internal and external environments, and develop an understanding of the nature of business
in Australia. Business ethics and socially responsible management are also important
considerations for businesses and will have an impact on the various stakeholders of all
businesses.
In investigating these business characteristics, students gain an understanding of the
interrelationships that affect, and are affected by, business activity.
OUTCOME 1
On completion of this unit the student should be able to explain a set of generic business
characteristics and apply them to a range of businesses.
To achieve this outcome the student will draw on key knowledge and key skills outlined in
area of study 1.
KEY KNOWLEDGE
This knowledge includes

features of organisations including for profit and not-for-profit organisations;

objectives of different types of organisations;
distinctions between small, medium and large businesses;
the contribution of small business to the economy;
the internal and external (operating and macro) environments of a business;
business ethics and socially responsible management and their impact on various
stakeholders.

KEY SKILLS
These skills include the ability to

accurately use relevant management terms;

recognise and classify types of businesses;
acquire and exchange business information and ideas;
research aspects of business management using print and online sources;
apply business management knowledge to practical and/or simulated business
situations;
analyse business information and data.

AREA OF STUDY 2- BUSINESS PERFORMANCE & EVALUATION

There are many decisions to be made and considerable planning to be undertaken
prior to the commencement or purchase of a small business. Students also examine
the ongoing decisions and planning that must occur throughout the life of the business.
Evaluation of the performance of a business is vital; students examine the
performance of a business using a range of measures including key performance
indicators. The management practices of small businesses are also considered with
respect to their ethical and socially responsible approach to decision-making, planning
and evaluation.
OUTCOME 2
On completion of this unit the student should be able to apply decision-making and
planning skills to establish and operate a small business, and evaluate the
management of an ethical and a socially responsible small business.
KEY KNOWLEDGE

The motivation behind starting a small business, including the desire for
independence, to make a profit and to fulfil a market need;
Major factors that influence decisions made when establishing a small business,
including decisions concerning:
Business concept development and initial market research
Innovation and entrepreneurship as a source of business opportunity
Forms of business ownership and business structure
Purchasing an existing business or establishing a new business, including
franchise operations
Location options: shopping centre, retail shopping strips, online presence and
home-based
Businesses, and the factors that affect that choice;
Business support services, including legal, financial, technological, communitybased, formal and
Informal networks;
Major business planning throughout the life of a small business, including:
Human and physical resource needs
Financial planning and sources of finance
Marketing strategy;
Strategies used to undertake ongoing evaluation of small business, including key
performance indicators
An overview of key legal and government regulations affecting the operation of a
small business
Practices which contribute to ethical and socially responsible management with
respect to decision-making, planning and evaluation

KEY SKILLS

Accurately use relevant management terms;

Research aspects of small business management using print and online

sources;
Acquire and exchange business information and ideas;
Explain the importance of complying with legal and government regulations
relevant to the small business;
Apply small business management knowledge to practical and/or simulated
business situations;
Evaluate management practices with respect to decision-making and planning

AREA OF STUDY 3- DAY TO DAY OPERATIONS

In this area of study, students examine the essential, ongoing activities which sustain
an ethical and a socially responsible small business and promote its successful
growth. To manage a small business, knowledge and skills should be developed in
areas including introductory accounting, management of staff, effective use of
information and communications technology and introduction to legal requirements.
Students examine one or more of these topics.
OUTCOME 3
On completion of this unit the student should be able to discuss one or more of the
day-to-day operations associated with an ethical and a socially responsible small
business, and apply the operation/s to a business situation.
KEY KNOWLEDGE

types of recruitment methods and selection processes;

reasons for, and distinctions between, employment arrangements including fulltime, part-time, casual status;
an overview of relevant legislation such as Occupational Health and Safety
(OH&S) and Equal Employment Opportunities (EEO);
ethical and socially responsible management of employment practices.

KEY SKILLS

accurately use relevant management terms;

research the selected day-to-day operation/s of a small business using print and
online sources;
acquire and exchange business information and ideas;
apply the selected day-to-day operation/s to a practical and/or simulated business
situation;
discuss the ethical and socially responsible management of the selected day-today operation/s.

UNDERSTANDING QUESTIONS: HOW TO UNPACK WHAT A QUESTION IS

ACTUALLY ASKING
Task wordsthese words tell the student what they have to do with the topic or
key knowledge, e.g. compare, define, analyse, evaluate
TASK
DESCRIPTION
WHAT IS REQUIRED
WORD
Define

Accurately state meaning. More than

2 sentences, and may also be
required to give an example

2 sentences
May also include an example (if
required)

Discuss

Talk about, argue, confer, examine,

consider and deliberate.
A level of detail is required for these
responses

Write about both sides

Pros & Cons
Benefits or Limitations

Describe

Give the facts about something, the

key features in some level of depth

If asking for the process of

something, provide a detailed
account in sequential order

Explain

Give reasons in some detail which

make the point clear and
understandable

Illustrate

Provide an example to support your

statement or comment

Outline

Brief description of the main features

of a term or topic.

Identify

Determine the key characteristics or

features.

Check the question to see if a set

number of features are required to
fully answer the question

Justify

If stimulus (case study) material is

provided, you need to ensure the
there is a link between the stimulus
material and your answer, rather than
a general discussion

Give reasons for the selection you

have made.

Compare

Involves consideration of both

similarities and differences

Use words like they both and they

are different because..

Contrast

Identify and explain points of

difference

Evaluate

Assess or appraise, make a

judgment. Usually these questions are
worth the most marks, allocate your
time accordingly

Carefully look at the different

arguments (for/again, pro/con) and
discuss the value of each. Make a
judgment/ opinion at the end.

Analyse

Inquire onto, explore, investigate the

details

Break the issue up into key points,

state the arguments for and against

Distinguish Recognise or show points of

difference.
Clearly show your knowledge of both

Use words such as:

Whereas
However

Content wordsthese words tell the student what areas of key knowledge
need to be addressed in the answer
Limiting wordsthese words define the scope and focus of the answer. They
act to limit the subject matter so you know what should and should not be
included in the answer.
Mark and time allocationthis indicates how much the question is worth.
Based on the marks allocated a student can then work out how much time they
should allow to complete that question.