Chapter 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

Is the quantity of a product that consumers are prepared to purchase

Question 2

Market conditions

Answer 2

Are the features of a market into which a new product or service is to be introduced, and include factors such s the number of potential customers, level od competition and potential of growth.

Question 3

Innovation

Answer 3

Is either creating a new product, service or process or significantly improving an existing one

Question 4

Research and development

Answer 4

Is a set of activities undertaken to improve existing products, create new products and improve production.

Question 5

Entrepreneurship

Answer 5

Is the ability and willingness to start, operate and assume the rick of a business venture, in the hope of making a profit.

Question 6

Business entity

Answer 6

Is any organisation engaged in the production of goods and services.

Question 7

Incorporated business

Answer 7

Has separate legal entity from the owners.

Question 8

Sole trader

Answer 8

(Proprietor) business is a business owned and operated by one person.

Question 9

Unlimited liability

Answer 9

Mean the business owner of personally responsible for all the debts of his or her business

Question 10

Partnership

Answer 10

Is an unincorporated legal business structure with Minimum of two and a maximum of 20 owners.

Question 11

Silent partner

Answer 11

Or a sleeping partner, contributes financially tot he business but takes no part in the running of the partnership.

Question 12

Incorporation

Answer 12

Is the process that business go through to become a register company and a separate legal entity.

Question 13

Shareholders

Answer 13

Or members are the owners of a company.

Question 14

Limited liability

Answer 14

Means that the shareholders in a company cannot be held or personally responcibel for the debts of that business.

Question 15

Proprietary company

Answer 15

Is an unincorporated business with a minimum of 2 and a maximum at 50 private shareholders.

Question 16

Public company

Answer 16

Owned by shareholders

Question 17

Cooperative

Answer 17

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

Question 18

Trust

Answer 18

Is a business structure where a trustee hole property or carries out business on behalf of the members of the trust, known as beneficiaries.

Question 19

Goodwill

Answer 19

Is the monetary value attached tot he reputation of a particular business

Question 20

Franchise

Answer 20

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

Question 21

Franchiser

Answer 21

Is an individuality organisation that grants a franchise.

Question 22

Franchisee

Answer 22

Is an individual or organisation that purchases a franchise.

Question 23

Zoning

Answer 23

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

Question 24

Complementary businesses

Answer 24

Offer products or services that are related to a different business and that may be of use to the customers of that business.

Question 25

Solicitor

Answer 25

Provide information concerning business formation and structures, registration, contracts, leases, partnership, agreements, patents and legalisation. They are up to date with any changes to company law and can advise the small business owner on how to best deal with changes.

Question 26

Accountant

Answer 26

Provide valuable advice on all financial management issues and tax obligations. They have access to the latest changes to taxation and financial reporting requirements.

Question 27

Bank managers

Answer 27

Another valuable contact who can provide information and advice of financial services, source of finance and basic business management.

Question 28

Business enterprise centres (BEC)

Answer 28

Is a not for profit network of business enterprise centre which provide support to small business owners

Question 29

Chambers of commerce

Answer 29

These are local associations of businesspeople. They provide legal and financial help.

Question 30

Victorian employers chamber of commerce and industry (VECCI)

Answer 30

Is the states main employer group and Australia’s largest multi-industry employer organisation. It provides support for members who may be in dispute with their employees.

Question 31

Small business association of Australia and New Zealand

Answer 31

This lobby group provides a forum for exchanging news and views relating to small business matters. Promotes the role of small business and it’s importance in the total economy.

Question 32

Trade associations

Answer 32

Offer specific industry information and assistance

Example: australian retailers association.

Question 33

Federal government

Answer 33

Operates a website: www.business.gov.au

Offers access to all government departments with advice on everything from fair trading to taxation

Question 34

State government

Answer 34

Provides entry and links to information and support on all aspects of starting and managing a business

Question 35

Local government

Answer 35

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

Question 36

Informal networks

Answer 36

Business people cam use their network of friends and colleagues, as well as other local business owners to gain information and advice

Question 37

Business ethics

Answer 37

Is the application of moral standards to business behaviour.

Question 38

Socially responsible management

Answer 38

Is managing an organisation in such a ways that the broader social welfare of the community is taken into consideration when making business decisions

Question 39

Stakeholders

Answer 39

Are individuals or groups with an interest in the success of the business.