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123 Childcare Centre is a business operating as a partnership - VCE - SSCE Business Management - Question 1 - 2018 - Paper 1
Question 1
123 Childcare Centre is a business operating as a partnership. It provides childcare services for children aged five and under. Mary Kidd, one of the partners at the... show full transcript
Worked Solution & Example Answer:123 Childcare Centre is a business operating as a partnership - VCE - SSCE Business Management - Question 1 - 2018 - Paper 1
Step 1
Define the term 'partnership' as a type of business.
Answer
A 'partnership' is a type of business structure where two or more individuals share ownership and responsibility for managing the business. In a partnership, each partner contributes capital, shares profits, and participates in decision-making. The partnership operates under a shared agreement, which outlines each partner's role, responsibilities, and the distribution of profits and losses. Importantly, partners also bear personal liability for the business's debts, meaning that their personal assets are at risk if the business fails.
Step 2
Describe a business objective (other than 'to make a profit') that would be relevant to 123 Childcare Centre.
Answer
An objective relevant to 123 Childcare Centre could be to 'increase market share by improving employee satisfaction and reducing staff turnover'. This objective focuses on enhancing the work environment and providing a supportive atmosphere where employees feel valued. By addressing issues like long working hours and low motivation, 123 Childcare Centre can create a more stable workforce, leading to improved service quality and ultimately attracting more clients in the local area.