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Business > Business Studies > Flashcards

Business Studies Flashcards

1
Q

What is profit?

A

What remains after all expenses have been deducted from sales revenue

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2
Q

What is revenue?

A

The money a business receives as payment for its products

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3
Q

What is income?

A

Money received by a person for providing their labour

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4
Q

What is a wage?

A

Money received by workers, usually on a weekly basis

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5
Q

What is a salary?

A

Fixed amount of money paid on a regular basis, usually fortnightly or monthly, to a permanent employee of a business

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6
Q

What is a shareholder?

A

People who are part owners of a company

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7
Q

What is a dividend?

A

Part of a business’s profit that is divided among shareholders

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8
Q

What is an entreprenur?

A

People who transform their idea into a new business

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9
Q

Where does revenue from the Australian economy go?

A

The government in the form of taxes. Some goes to the business owners/shareholders, lenders, employees and some is kept in the business itself (retained profits)

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10
Q

What are the four methods to classifying a business?

A

Legal structure, Size, Geographical spread, Industry Sector

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11
Q

What is a quantitive way to classify a business?

A

A quantitive way to classify a business is to measure it by the number of employees, owners and market share

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12
Q

What is market share?

A

The proportion of total market sales the business has compared to competitors

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13
Q

What is a to consider when seeing if a business is qualititive?

A

The owner provides most of the finance. The business has little control within the market. The business is locally based, its independently owned and operated. They also have less control of prices.

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14
Q

What are the 4 ways the business can be classified by size?

A

Micro, Small, Medium, Large

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15
Q

How many employees in a micro business?

A

Fewer than five employees

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16
Q

How many employees in a small business?

A

5-19 employees

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17
Q

How many employees in a medium business?

A

20-199 employees

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18
Q

How many employees in a large business?

A

200 or more employees

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19
Q

What are the 3 ways a business can be classified as according to geographical spread?

A

Local, National and Global

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20
Q

What is a local business?

A

A local business is a small to medium-sized enterprise that serves nearby consumers and operates within a limited geographical area.

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21
Q

What is a national business?

A

A business that operates within just one company and generally has more than one location within the business

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22
Q

What is a global business?

A

A national business may expand globally when the domestic market saturates, becoming a multinational corporation that operates extensively across multiple countries, beyond borders.

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23
Q

What are the 5 ways to classify a business based on industry?

A

Primary, Secondary, Tertiary, Quatenary, Quinary

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24
Q

What is primary production?

A

Businesses involved in the collection of natural resources

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25
Q

What is a secondary industry?

A

Secondary industry includes all those businesses that take the output of firms in the primary sector (raw materials) and process it into a finished or semi-finished product

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26
Q

What is a tertiary industry?

A

The tertiary industry involves people performing a vast range of services for other people

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27
Q

What is a Quaternary Industry?

A

The quaternary industry includes services that involve the transfer and processing of information and knowledge

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28
Q

What is a Quinary industry?

A

Quinary industry includes all services that have traditionally been performed in the home

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29
Q

What are the 4 federal taxes?

A

PAYG, GST, FBT and Company tax

30
Q

What is PAYG?

A

This is the income tax deducted from the employee’s salary or wages by the employer and paid to the Taxation Office each month

31
Q

What is GST?

A

Is a broad-based tax of 10% on the supply of most goods and services consumed in Australia

32
Q

What is FBT?

A

It is tax on benefits that are provided to employees by an employer, such as cars, residential accommodation, entertainment, etc

33
Q

What is Company tax?

A

Tax paid on the profits of a business. It is currently calculated at 30%

34
Q

What is Payroll tax?

A

Is payable on all employers who pay salaries or wages of over $658,000 a year

35
Q

What is monetary policy?

A

Monetary policy is actions taken by the Reserve Bank to influence the level of interest rates in the Australian economy

36
Q

What are the 4 ways to classify a business based of legal structure?

A

Sole trader, Partnership, Public Company and Private Company

37
Q

What type of businesses legal structure is incorporated?

A

Public Company and Private Company

38
Q

What type of businesses legal structure is unincorporated?

A

Sole trader and Partnership

39
Q

What legal structures are a separate legal entity from their owners?

A

Incorporated

40
Q

What legal structures are not a separate legal entity from their owners?

A

An unincorporated business has no separate legal existence from its owner(s) and will be either a sole trader or partnership

41
Q

If the companies legal structure isnt a seperate legal entity from their owner what happens when the owner dies?

A

So does the business entity

42
Q

How many owners in a partnership?

A

2-20 (some exceptions)

43
Q

What legal structures have unlimited liability?

A

Partnership and Sole trader

44
Q

Description of a company

A

Are incorporated and have limited liability which means they are separate legal entities to their owners, also do not cease to exist if one of the owners dies

45
Q

If its a private company what has to be after the name of the company?

A

Pty ltd (proprietary limited)

46
Q

How many shareholders for a private company (owners)

A

1-50

47
Q

If its a public company what has to be after the name of the company?

A

Ltd

48
Q

How many shareholders for a public company (owners)

A

At least one shareholder - no upper limit of shareholders

49
Q

What is a public companay listed on?

A

The Australian Securities Exchange (ASX)

50
Q

How can businesses expand?

A

Takeovers and Mergers

51
Q

Whats a Takeover?

A

Takeover: One business takes control of another by purchasing a controlling interest

52
Q

What is a Merger?

A

Mergers: Two seperate businesses combine their resources and form a new business

53
Q

What is involuntary cessation?

A

Occurs when the owner is forced to cease trading by the creditors of the business

54
Q

What is voluntary cessation?

A

Occurs when the owner ceases to operate the business of their own accord

55
Q

What is a creditor?

A

People or businesses who are owed money

56
Q

What is liquidation?

A

When the liquidator is appointed to take control of the business with the intention of selling all the company’s assets in an orderly and fair way in order to pay the creditors. Once the creditors have been paid, and surplus cash is paid to the owners of the company

57
Q

What is it to be insolvent?

A

Being insolvent occurs when a company is not able to pay its debts as and when they fall due

58
Q

What is are Goods?

A

A manufacturer will transform inputs into tangible products.

59
Q

What is are services?

A

A service organisation will transform inputs into services.

60
Q

What is price/cost strategy?

A

In order for the Marketing department to set a competitive price, the Operations department must manage to keep costs down low enough to still make a profit at that price point.

61
Q

What is a Mass Marketing Strategy?

A

A mass-marketing approach seeks a large range of customers.

62
Q

What is a Market Segmentation Approach?

A

Market segmentation is when the total market is subdivided into groups of people who share one or more common characteristic

63
Q

What is Niche marketing strategy?

A

Niche market a narrowly selected target market segment

64
Q

What are the 4 Marketing P’s?

A

Product, Promotion, Price and Place

65
Q

What are the extended Marketing P’s?

A

Physical evidence, People and Process

66
Q

What is Product (In terms of the Marketing P’s)?

A

When the business needs to determine overall product success

67
Q

Cost Based?

A

A pricing method derived from calculating the total cost of producing or purchasing a product and then adding a mark-up for profit

68
Q

Market Based?

A

A method of setting prices according to the interaction between the levels of supply and demand — whatever the market is prepared to pay

69
Q

Competition Based?

A

Choosing a price that is either below, equal to or above that of the competitors.

70
Q

What is Process (In terms of the extended P’s)?

A

The flow of activities or mechanisms that take place when there is any interaction between the customer and a business. This may relate to the delivery of the product, or how the customer finds out about the product, selects it and then makes their purchase.

Business (3 decks)

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