Chapter 2- Small Busines- Decision Making

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 feature 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 growth.

Question 3

Innovation

Answer 3

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

Question 4

Research and development

Answer 4

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

Question 5

Entrepreneurship

Answer 5

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

Is any organisation engaged in the production of goods and services

Question 7

Incorporated business

Answer 7

Has a seperate legal entity for the owner or owners.

Question 8

Sole trader

Answer 8

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

Question 9

Unlimited liability

Answer 9

Means the business owner is personally responsible for all debts of his or her business.

Question 10

Partnership

Answer 10

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

Question 11

Silent partner

Answer 11

Contributes financially to the 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 registered company and a separate legal entity.

Question 13

Shareholders

Answer 13

Are the owners of a company.

Question 14

Limited liability

Answer 14

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

Question 15

Proprietary company

Answer 15

Is an incorporated business with a minimum of two, and a maximum of 50 private shareholders.

Question 16

Cooperative

Answer 16

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

Question 17

Trust

Answer 17

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

Question 18

Goodwill

Answer 18

Is the monetary value attached to the reputation of a particular business.

Question 19

Franchise

Answer 19

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

Question 20

Franchiser

Answer 20

Is an individual or organisation that grants a franchise.

Question 21

Franchisee

Answer 21

Is an individual or organisation that purchases a franchise.

Question 22

Zoning

Answer 22

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

Question 23

Complementary business

Answer 23

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

Question 24

Soliciter

Answer 24

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 give advice.

Question 25

Accountant

Answer 25

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 26

Bank manager

Answer 26

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

Question 27

Business enterprise centres Australia

Answer 27

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

Question 28

Chambers of commerce

Answer 28

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

Question 29

Victoria employers chamber of commerce and industry (VECCI)

Answer 29

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

Question 30

Small business association of Australia and New Zealand

Answer 30

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

Question 31

Trade associations

Answer 31

Offer specific industry information and assistance

Example: Australian retailers associations

Question 32

Federal government

Answer 32

Operates a website: www.business.gov.au offers access to all government departments with advice on everything from fair trading to taxation.

Question 33

State government

Answer 33

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

Question 34

Local government

Answer 34

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

Question 35

Informal networks

Answer 35

Business people can use their network of friends and colleagues, as well another local business owners to gain information and advice.

Question 36

Business ethics

Answer 36

Is the application of moral standards to business behaviour.

Question 37

Socially responsible management

Answer 37

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 38

Stake holders

Answer 38

Are individuals or groups with an interesting the success of the business.

Question 39

Public company

Answer 39

Owned by shareholders.