1.3 Other Roles of Business Flashcards
Define Profit
Profit is what remains after all the business expenses have been deducted from sales revenue
What is the Profit formula
Profit =Revenue- Expenses
Define Expenses
are all the costs of running the business except the cost of goods sold (COGS)
Define Revenue
The money a business receives as payment for its product (goods or service)
How does the ABS define a person as employed
The ABS defines a person as employed if they work more than 1 hour a week
Define income
money received by an employee for providing their labour, or a business from a return on investments
Define Wage
money received by workers, usually on an hourly or daily basis, for services they provide to an employer.
Define Salary
a fixed regular payment, usually paid on a fortnightly or monthly basis but often expressed as an annual sum.
What is a bonus
a sum of money added onto a persons wage as a reward for positive performance
What is overtime
payment for work that is done outside regular hours. - Such time is usually paid at a higher rate
What is Commision
Commission is the percentage of the sales price received by a salesperson.
What are Fringe Benefits
An extra benefit supplementing an employees money, wage, or salary - e.g. healthcare
What are shareholders
people who are part owners of a company because they own a number of shares
What are dividends
are the distribution of a company’s profits to shareholders that is calculated as a number of cents per share.
Define choice
choice is the act of selecting amongst alternatives
Define innovation
innovation is the creation of a new product, service, or process, or significantly improving an existing one
Define invention
Invention refers to the development of something completely new
Define Entrepreneurship
Entrepreneurship is the ability and willingness to start, operate, and assume the risk of a business venture in the hope of making a profit
Define Entrepreneur
Someone who starts, operates, and assumes the risk of a business venture when making a profit.
Define Risk
Risk is the possibility of loss
Define Wealth
Wealth is a stock of previous incomes that have been amassed over time.
Define Quality of Life
Quality of Life refers to the overall well-being of an individual, and is the combination of material and non-material benefits.
What is research and development (R&D)
R&D is a set of activities undertaken to improve existing products, the production process, and create new products
