Bus Man Chap 2

Question 0

Market research

Answer 0

Is a process of systematically collecting, recording and analysing information concerning a specific market

Question 1

Demand

Answer 1

Demand is the quantity of the product that consumers are prepared to purchase

Question 2

Market conditions

Answer 2

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.

Question 3

Innovation

Answer 3

Innovation is either creating a
new product, service or process, or significantly improving an existing one.

Question 4

Research and development

Answer 4

Research and development (R&D) is a set of activities undertaken to: improve existing products, create new products and improve production.

Question 5

Entrepreneurship

Answer 5

Entrepreneurship is the ability and willingness to start, operate and assume the risk of a business venture in the hope of making a profit.

Question 6

Business entity

Answer 6

business entity is any organisation engaged in the production of goods and services.

Question 7

Incorporated business

Answer 7

business that is incorporated has a separate legal entity from the owner(s

Question 8

Sole trader

Answer 8

A sole trader (proprietor) business is a business owned and operated by one person.

Question 9

Unlimited liability

Answer 9

Unlimited liability means the business owner is personally responsible for all the debts of his or her business

Question 10

Partnership

Answer 10

partnership is an unincorporated legal business structure with a minimum of two and a maximum of 20 owners.

Question 11

Silent partner

Answer 11

silent or sleeping partner contributes financially to the business but takes no part in the running of the partnership.

Question 12

Incorporation

Answer 12

Incorporation is the process that businesses go through to become a registered company and a separate legal entity.

Question 13

Shareholders

Answer 13

Shareholders (or members) are the owners of a company.

Question 14

Limited liability

Answer 14

Limited liability means that the shareholders in a company cannot
be held personally responsible for the debts of that business.

Question 15

Proprietary compony

Answer 15

proprietary (private) company is an incorporated business with a minimum of two, and a maximum of 50 private shareholders.

Question 16

Cooperative

Answer 16

cooperative is a democratic organisation owned and controlled by the people it serves, who join together for a common benefit.

Question 17

Trust

Answer 17

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.

Question 18

Goodwill

Answer 18

Goodwill is the monetary value attached to the reputation of a particular business.

Question 19

Franchise

Answer 19

franchise means buying the rights from another business to distribute its products under its name.

Question 20

Franchisor

Answer 20

franchisor is an individual or organisation that grants a franchise.

Question 21

Franchisee

Answer 21

franchisee is an individual or organisation that purchases a franchise.

Question 22

Zoning

Answer 22

Zoning is a means by which local councils allocate land for different uses, such as residential, commercial, recreational and industrial.

Question 23

Complementary business

Answer 23

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.

Question 24

Solicitor

Answer 24

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.

Question 25

Accountant

Answer 25

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.

Question 26

Bank manager

Answer 26

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.

Question 27

Chambers of commerce

Answer 27

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.

Question 28

Victorian employers Chamber of Commerce and Industry (VeCCI)

Answer 28

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.

Question 29

Small Business association of australia and New Zealand

Answer 29

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.

Question 30

Trade associations

Answer 30

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.

Question 31

Federal government

Answer 31

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.

Question 32

State government

Answer 32

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.

Question 33

Local government

Answer 33

Local councils offer advice on land zoning, assist with subsidised land and consider development applications.

Question 34

Informal networks

Answer 34

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.

Question 35

Business ethics

Answer 35

Business ethics is the application of moral standards to business behaviour.

Question 36

Socially responsible management

Answer 36

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.

Question 37

Stakeholders

Answer 37

stakeholder is any group or individual who has an interest in, or is affected by, the activities of a business.