1. AOS 1 Flashcards
Define ‘Entrepreneurship’:
The process of establishing a business to satisfy a need in the market whilst taking on the associated risks.
(Not everyone has what the ability to take the risk needed, even if they have the desire or passion.)
Define ‘Business Venture’:
A business venture is a new business that is formed which involves risk.
Define ‘Loan’:
Borrowing a sum of money from another person or institution, and then paying the amount back at a later date with interest attached.
Define ‘Entrepreneur’:
An individual who starts a business and takes the associated risks in order to satisfy a need in the market.
The Skills/Characteristics an Entrepreneur Needs:
Risk-taking, leadership, innovation, communication, decision-making, networking, determination, resourcefulness, and knowledge.
Personal Motivations:
Personal independence, financial independence, to make a profit, to fulfil a market need, to fulfill a social need.
Define ‘Goods’:
Physical items that satisfy an individuals wants/needs. E.g. clothing, appliances.
Define ‘Services’:
Actions that are performed for customers to fulfil their wants or needs. E.g. A doctors appointment, a plummer.
Define ‘Start-Up’:
A business that is in the early stages of its establishment.
Personal Independence:
Involves a person being in control of their own decisions and actions.
Define ‘Revenue’:
The amount of money a business makes from selling goods or services.
Define ‘Expenses’:
The costs incurred when operating a business.
Define ‘Product’:
A good or service that satisfies consumer wants and needs.
Financial Independence:
The Ability to fund a desired lifestyle without relying on income from another individual.
Making a Profit:
A business generating more revenue than expenses it incurred.
Fulfilling a Market Need:
When a business fills a gap in the market by addressing customer needs that are currently unmet or underrepresented by competitors in the same industry.
Define ‘Social Enterprise’:
A type of business that aims to fulfill a community or environmental need by selling goods or services.
Fulfilling a Social Need:
Improving society and the environment through business activities.
Define ‘Manager’:
An individual who has the responsibility of overseeing and handling employees whilst also running the day-to-day business tasks to achieve objectives.
The Characteristics of a Successful Manager:
Communication skills, determination, knowledge, strong ethics, and flexibility.
Define ‘Innovation’:
Creating and implementing new ideas or significantly improving upon an existing good, service, or way of doing something.
Business Opportunity:
A favorable situation that can lead to improvements or success for a business.
Bitcoin:
A type of digital currency that is not controlled by a bank or administrator.
Define ‘Market Opportunity:
A need or want that is not currently being met by any business.
Business Environment:
Made up of surrounding factors that influence how a business operates.
Define ‘Demographics’:
Structural information about the characteristics of a population, such as age, ethnicity, gender, and income.
Factors That Can Create Market Opportunities:
Changing demographics, changing societal attitudes, changing laws, and advancements in technology.
Changing Customer Needs:
The transitions in the desires of customers.
Research and Development:
Directing resources, such as money, towards discovering, creating, and introducing new products and processes.
Technological Developments:
The inventions and innovations of tools that solve problems and enhance processes.
Global Market:
The are in which businesses trade goods and services, comprised of both business and customers from countries all across the world.
Define ‘Globalisation’:
The increased trade, communication, and travel between countries due to decreased trade barriers and increased technology.
Define ‘Business Goals’:
What a business wants to achieve within a specific time frame.
Define ‘Business Strategies’:
A series of actions that a business will implement to achieve its goals.
Financial Goals:
Targets for improving the overall financial performance of a business.
Social Goals:
Targets set by a business that aims to improve the welfare of the community, environment, or employees of a business.
Define ‘Profit Margin’:
The proportion of revenue left over from the sale of a good or service after a business handled its expenses.
SMART Goals:
Specific, Measurable, Attainable, Relevant, Time-Bound.
Define’ Business Concept’:
A brief outline of the business’s idea, its main sell activities, and the features that will provide it with a competitive advantage.
Competitive Advantage:
A business having qualities or startgies that provide it with an edge over its competitors.
Intellectual Property (IP):
An original creation of the mind that can by legally owned.
Trademark:
Legal rights over the name, symbols, color, and packaging.
Patent:
Exclusive rights to the use of innovative devices, methods, or processes. These can expire and be sold.
Copyright:
Protection over; writing, music, art, sound, films, and photographs.
Domain Name:
Registered right to use a website address, cannot be copied once business is launched.
Quantitive Data:
Is numerical data, such as figures and statistics.
Qualitative Data:
Is non-numerical data, such as options or written survey responses.
Initial Feasibility Study:
A researched evaluation of how viable a business concept is.
Market Conditions:
The factors that influence a specific industry.
Define ‘Operational Feasibility’:
Understanding the type of employees, equipment, technology, and resources needed.
Commercial Feasibility:
Researching the initial cost (determining if the start-up can afford it), while also determining if the industry and customers will support the business.
Technical Feasibility:
Examines the current skills of the business owner and their ability to meet the business goals.
Legal Feasibility:
Understand the legal requirements for starting/running a business.
Define ‘Economic Wellbeing’:
Reflected by the level of income, consumption, and wealth people or households have to support their material living standards.
Define ‘Economy’:
An area or region that engages in the production, consumption, and distribution of goods and services.
Define ‘Tax’:
A compulsory payment to the government, which is used to finance the provision of public goods and services.
Define ‘Infrastructure’:
The essential facilities and structures that are required for an economy to operate.
Economic Growth:
When the total value of goods and services produced by an economy increases over a period of time. This can be measured by ‘gross domestic product’ (GDP).
Gross Domestic Product (GDP):
The market value of all final goods and services produced within a country in a period of time.
Material Living Standards:
The level of wealth and comfort an individual has from their use of tangible goods and services.
International Trade:
The exchange of goods and services between different countries.
Social Wellbeing:
A measure of the quality of life individuals have, reflected by their non-material living standards.
Define ‘Exporting’:
Selling a product to a customer in another country.
Define ‘Importing’:
Purchasing products from another country.
Non-living Materials:
Living standards are non-physical factors that influence the quality of life experienced by individuals.
Tax Offset:
A direct reduction in the amount of tax that must be paid by a business to the Australian Tax Office (AOT).
Council Grant:
A one-off financial payment from a local council to a business, which does not need to be repaid, that aims to support business ideas and development.
Start-Up Hubs:
Physical spaces that individuals and businesses can utilize in order to have office facilities to work in or to obtain support regarding business matters.
Subsidy:
A financial payment provided by the government to an individual or business generally to promote a specific behavior.