Report+Questions+for+The+Nature+of+Business.

Extended-response questions for Topic 1 - The Nature of Business. You can practise these and submit them to your teacher for marking at any time.


 * 1) Businesses exist not to serve the community but to maximise the financial investments of their owners. With reference to this statement, describe the social and economic roles of bs and evaluate why entrepreneurs pursue different goals as part of the operation of the business.

2. Value chain analysis can only be effective if managers are successfully fulfilling their four key management roles. Discuss.

3. Over the past 10 years, Sam and Helen have established a reputation for providing quality leather goods. Increased competition and pressure from low- cost imports has seen sales for their business fall. They have also failed to keep pace with changing consumer tastes and preferences. Write a bs report to the owners of the bs, describing the stages of the bs life cycle, the challenges that the owners have most likely faced and suggest strategies for the bs to enter a path of renewal.

4. A bs operates in an external environment that is subject to change. With reference to two key aspects of the bs environment, examine how changes to these aspects impact on the operations of bs.

5. A bs is designed to serve the interests of its shareholders. Therefore, conflict of interest within the bs should not exist. Identify the key responsibilities of management to three stakeholders of the bs. Describe how conflict may arise in attempts to reconcile the interests of these stakeholders with the financial interests of the bs.