Business Management Concepts AOS 3 SAC Revision (Grade A+)

Summary:

This comprehensive text is a valuable resource for students seeking to thoroughly revise the key topics covered in VCE Business Management Unit 1 AOS 3. It delves into various aspects of the business landscape, providing insights and an understanding of crucial concepts.

The text begins by exploring the different types of businesses that exist, shedding light on their distinct characteristics and structures. It delves into the significance of resources, including natural resources like land, water, and raw materials, and labour resources represented by the skills, effort, and knowledge contributed by employees and business owners. Furthermore, the importance of capital resources, such as tools and machinery, in optimizing labour efficiency is emphasized.

Another crucial aspect covered is the significance of the business location. The text delves into different types of business locations, such as shopping centres, retail shopping strips, online presence, and home-based businesses. Factors influencing the choice of the business location, including visibility, cost, proximity to customers, suppliers, and competitors, as well as the presence of complementary businesses, are explored in detail.

The text also addresses sources of finance, highlighting the various avenues businesses can utilize to obtain funding. It examines equity finance, which includes self-funding, support from family or friends, private investors, shares, crowdfunding, and external sources of finance like grants and short-term/long-term borrowing options. Factors influencing the finance choice, such as financial terms, business structure, overall cost, flexibility, and level of control, are meticulously explained.

Furthermore, the text offers insights into the advantages and considerations when deciding between purchasing an existing business or starting a new one from scratch. It explores the types of legal structures businesses can adopt, distinguishing between unincorporated structures like sole traders and partnerships, and incorporated structures like privately and publicly owned companies. Each structure’s unique characteristics and implications are thoroughly analyzed.

Excerpt:

Business Management Concepts AOS 3 SAC Revision

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Natural Resources

• Natural resources are items used by the business that comes from the natural environment.
• These include, for example, land, water and raw materials.
• A business must ensure that it uses natural resources wisely and does not harm the natural environment in its operations.