Bus Man Chap 2 Flashcards
Market research
Is a process of systematically collecting, recording and analysing information concerning a specific market
Demand
Demand is the quantity of the product that consumers are prepared to purchase
Market conditions
Market conditions are the features of a market into which a new product or service is to be introduced, and include factors such as the number of potential customers, level of competition and potential for growth.
Innovation
Innovation is either creating a
new product, service or process, or significantly improving an existing one.
Research and development
Research and development (R&D) is a set of activities undertaken to: improve existing products, create new products and improve production.
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.
Business entity
business entity is any organisation engaged in the production of goods and services.
Incorporated business
business that is incorporated has a separate legal entity from the owner(s
Sole trader
A sole trader (proprietor) business is a business owned and operated by one person.
Unlimited liability
Unlimited liability means the business owner is personally responsible for all the debts of his or her business
Partnership
partnership is an unincorporated legal business structure with a minimum of two and a maximum of 20 owners.
Silent partner
silent or sleeping partner contributes financially to the business but takes no part in the running of the partnership.
Incorporation
Incorporation is the process that businesses go through to become a registered company and a separate legal entity.
Shareholders
Shareholders (or members) are the owners of a company.
Limited liability
Limited liability means that the shareholders in a company cannot
be held personally responsible for the debts of that business.
Proprietary compony
proprietary (private) company is an incorporated business with a minimum of two, and a maximum of 50 private shareholders.
Cooperative
cooperative is a democratic organisation owned and controlled by the people it serves, who join together for a common benefit.
Trust
trust is a business structure where a trustee (usually a company) holds property or carries out business on behalf of the members of the trust, known as beneficiaries.
Goodwill
Goodwill is the monetary value attached to the reputation of a particular business.
Franchise
franchise means buying the rights from another business to distribute its products under its name.
Franchisor
franchisor is an individual or organisation that grants a franchise.
Franchisee
franchisee is an individual or organisation that purchases a franchise.
Zoning
Zoning is a means by which local councils allocate land for different uses, such as residential, commercial, recreational and industrial.
Complementary business
Complementary businesses offer products or services that are related to a different business and that may be of use to the customers of that business.
Solicitor
Solicitors provide information concerning business formation and structures, registration, contracts, leases, partnership agreements, patents and legislation. Solicitors are up to date with any changes to company law and can advise the small business owner on how best to deal with such changes.
Accountant
Accountants provide valuable advice on all finan- cial management issues and taxation obligations. They have access to the latest changes to taxation and financial reporting requirements.
Bank manager
Bank managers are another valuable contact who can provide information and advice on financial services, sources of finance, and basic business management. They usually have a wide range of experience to draw on and can access the resources of the bank.
Chambers of commerce
These are local associations of businesspeople, usually centred around a suburb or region. They provide legal and financial help, taxation advice, an explanation of legislation, and industrial relations information. They also organise training seminars, arrange industry conferences and liaise with government departments.
Victorian employers Chamber of Commerce and Industry (VeCCI)
VECCI is the state’s main employer group and Australia’s largest multi-industry employer organisation. It is concerned primarily with human resources and industrial relations issues, and provides support for members who may be in dispute with their employees.
Small Business association of australia and New Zealand
This lobby group provides a forum for exchanging news and views relating to small business matters. It also organises training days and promotes the role of small business and its importance in the total economy.
Trade associations
Trade associations offer specific industry information and assistance. Examples include the Plastics and Chemicals Industries Association, the Australian Retailers Association and the Australian Medical Association. Each association is made up of organisations in the same line of business, so it can provide specific details about product development and industry trends.
Federal government
The federal government operates a website, www.business.gov.au, as a service to businesses of all sizes, offering access to all government departments with advice on everything from fair trading to taxation. Government departments such as the Department of Foreign Affairs and Trade, and the Department of Innovation, Industry, Science and Research provide specific advice and support to businesses on issues such as exporting overseas and research and development of new products.
State government
In Victoria, the Department of Innovation, Industry and Regional Development offers a number of programs designed to assist businesses, including:
• the Business Victoria website (www.business.vic.gov.au), which provides entry and
links to information and support on all aspects of starting and managing a business • Victorian Business Centres, which offer a centralised range of business services
from all levels of government and the private sector.
Local government
Local councils offer advice on land zoning, assist with subsidised land and consider development applications.
Informal networks
Businesspeople can use their network of friends and colleagues, as well as other local business owners to gain information and advice. Active membership of local chambers of commerce, trade associations and service clubs can lead to friendships and contacts that go beyond the formal activities of theses bodies.
Business ethics
Business ethics is the application of moral standards to business behaviour.
Socially responsible management
Socially responsible management
is managing an organisation in such a way that the broader social welfare of the community is taken into consideration when making business decisions.
Stakeholders
stakeholder is any group or individual who has an interest in, or is affected by, the activities of a business.
