Chapter 2 - Small Business-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

In business terms, demand 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 as the number of potential customers, level of competition and potential for 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

(R&D) is a set of activities undertake 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 risk of a business venture in the hope of making a profit.

Question 6

Business entity

Answer 6

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

Question 7

Incorporated business

Answer 7

A 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

Means the business owner is personally responsible for all the 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

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

Question 12

Incorporation

Answer 12

Is the process that businesses 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

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

Question 15

Proprietary company

Answer 15

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

Question 16

Public company

Answer 16

The shares for the public companies are listed on the Australian Securities Exchange, and the general public may buy and sell shares in those companies.

Question 17

Cooperative

Answer 17

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

Question 18

Trust

Answer 18

A 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 19

Goodwill

Answer 19

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

Question 20

Franchise

Answer 20

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

Question 21

Franchisor

Answer 21

A Franchisor is an individual or organisation that grants a franchise.

Question 22

Franchisee

Answer 22

A franchisee 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

Provides information concerning business formation and structures, registration, contracts, leases, partnership agreements, patents and legislation.

Question 26

Accountant

Answer 26

Provide valuable advice on all financial management issues and taxation obligation.

Question 27

Bank manager

Answer 27

Provide information and advice on financial services, sources of finance, and basic business management.

Question 28

Business Enterprise Centres (BEC) Australia

Answer 28

BEC Australia is a not-for-profit network of business enterprise centres 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, taxation advice, an explanation of legislation and industrial relations information.

Question 30

Victorian Employers Chamber of Commerce and a Industry (VECCI)

Answer 30

VECCI is the state’s main employer group and Australia’s largest muti-industry employer organisation.

Question 31

Trade associations

Answer 31

Offer specific industry information and assistance.

Question 32

Federal government

Answer 32

The federal government operates a website, as a service to businesses of all sizes, offering access to all government departments with advice on everything for fair trading to taxation.

Question 33

Federal government

Answer 33

The federal government operates a website, as a service to businesses of all sizes, offering access to all government departments with advice on everything.

Question 34

State government

Answer 34

In Victoria, the Department of Business and Innovations Business Victoria website provides entry and links to information and support on all aspects.

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

Businesspeople can use their networks of friends and colleagues 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 way that the broader social welfare of the community is taken into consideration when making business decisions.

Question 39

Stakeholder

Answer 39

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