1. AOS 2 Flashcards
Internal Environment:
Factors within a business that a business has control over.
External Environment:
The surrounding factors that can impact a business, which it has minimal control over.
Macro-Factors:
Social, legal, technological, global, and economic conditions that a business operates in and has no control over.
Operating Factors:
The primary external factors impacting a business that it has some control over.
Sole Trader:
A business structure that is owned and operated by one individual.
Unincorporated:
The business owner and the business being viewed as the same legal entity.
Unlimited Liability:
The business owner being held personally responsible for the business’s debts.
Personal Income Tax:
A portion of an individuals’ earnings that is paid to the government for public services.
Debt:
The amount of money that an individual or business owes another individual or business.
Partnership:
Owned by 2-20 owners.
Partnership Agreement:
Outlines the roles and expectations of partners in the business.
Private Limited Company:
An incorporated business structure that has at least one director and a maximum of 50 shareholders.
Incorporated:
A business being established as a separate legal entity from the owners.
Director:
A person or a group of people who are responsible and in charge of a company.
Shareholders:
The individuals who have purchased shares of a company and therefore are part-owners of the company.
Dividends:
Regular sums of money paid out to shareholders from a company’s profit.
Limited Liability:
When shareholders are only liable to the extent of their original investment, meaning they are not personally responsible for the business debts.
Capital:
The resources that can be used for funding a business such as cash, machinery, and equipment.
Public Listed Company:
An incorporated business that has an unlimited number of shareholders and lists and sells its shares on the ASX.
Australian Securities Exchange (ASX):
The electronic market where Australian public company shares are bought and sold.
Government Business Enterprise (GBE):
A business owned and operated by the government.
Public Sector:
The part of the economy that is operated by the government.
Business Model:
A plan that identifies how the business will operate to make a profit.
Online Business:
A business model where goods and services are traded via the internet.
Advertising Model:
Revenue through advertising. E.g. FaceBook.
Brokerage Model:
Buyers and sellers are brought together to exchange products. Profit is made through seller’s fee. E.g. Ebay, Etsy.
Direct to Customer:
The business’s products are sold directly to customers with no intermediaries involved. E.g. Cotton:on.
Subscription Model:
Fee for use of website/app. E.g. Netflix.
Bricks and Mortar Business:
A physical store presence.
Clicks and Mortar:
A type of business model that has a physical store presence as well as an online existence.
Franchise:
A business model that grants another person the right to operate under its name, use its business systems, and sell its goods and services.
Tariff
A tax that needs to be paid on goods being imported from overseas.
Goodwill:
The calculated monetary value of a business’s established reputation.
Consumer Base:
A group of consumers who continuously purchase goods and services from businesses.
Corporate Social Responsibility (CSR):
The ethical conduct of a business beyond legal obligations and the consideration of social, economic, and environmental impacts when making business decisions.
Natural resources:
Raw materials from the environment that are used in the production of goods and services.
Labour Resources:
The people who provide the business with their skills and qualifications to conduct business activities.
Capital Resources:
Manmade goods are used in the production of goods and services.
Home Business:
A business that operates from an individual’s home.
Equity Capital:
Money contributed to a business by an investor in exchange for partial ownership.
Shares:
Also known as stock, portions of a company that can be bought and sold as a means for the business to gain revenue.
Angel Investor:
A private investor that contributes money to a new or expanding business. Typically, they also act as a business mentor.
Initial Public Offering (IPO):
Ehere the stock of a company is offered on the stock market for the first time.
Dept Capital:
Money that has been lent to a business by an external source that must be paid back over time, with interest.
Grant:
Money provided by a government or another organization for a particular reason.
Overdraft Facilities:
Agreements between banks and businesses or individuals, that allow a bank account to be withdrawn below zero.
Business Support Services:
The specialized people facilities or amenities that aim to help businesses successfully open.
Solicitor:
A legal professional who is qualified to provide advice on legal matters.
Bookkeeper:
A person hired by a business to record and document its financial transactions.
Accountant.
A professional who manages updates, analyses, and reports a business’s financial information.
Hub:
A place where individuals and businesses can go to utilize the space and obtain support.
Formal Networks:
Interconnected groups of people and official organizations that assist in offering professional support to business owners.
Business Associations:
Organizations that advise and support businesses in a particular industry.
SWOT Analysis:
A planning analysis tool that helps a business identify its strengths, weaknesses, threats and opportunities.
