Chapter 2-Small business — decision making Flashcards
Demand
The quantity of a product that consumers are prepared to purchase
Market Research
A process of systematically collecting, recording and analysing information concerning a specific market.
Market conditions
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.
Innovation
Either creating a new product, service or process, or significantly improving an existing one.
Research and Development
S set of activities undertaken to: improve existing products, create new products and improve production
Entrepreneurship
The ability and willingness to start, operate and assume the risk of a business venture in the hope of making a profit.
Business entity
Any organisation engaged in the production of goods and services.
Incorporated business
Has a separate legal entity from the owner(s).
Sole Trader
A business owned and operated by one person.
Unlimited liability
The business owner is personally responsible for all the debts of his or her business.
Partnership
An unincorporated legal business structure with a minimum of two and a maximum of 20 owners.
Silent Partner
Contributes financially to the business but takes no part in the running of the partnership.
Incorporation
The process that businesses go through to become a registered company and a separate legal entity.
Shareholders
The owners of a company
Limited liability
The shareholders in a company cannot be held personally responsible for the debts of that business.
Proprietary Company
An incorporated business with a minimum of two, and a maximum of 50 private shareholders.
Public company
A company that has issued securities through an initial public offering (IPO) and is traded on at least one stock exchange or in the over the counter market.
Cooperative
A democratic organisation owned and controlled by the people it serves, who join together for a common benefit.
Trust
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.
Goodwill
The monetary value attached to the reputation of a particular business.
Franchise
Buying the rights from another business to distribute its products under its name.
Franchisor
An individual or organisation that grants a franchise.
Franchisee
An individual or organisation that purchases a franchise.
Zoning
A means by which local councils allocate land for different uses, such as residential, commercial, recreational and industrial.
Complementary business
Offer products or services that are related to a different business and that may be of use to the customers of that business.
Solicitor
Provide information concerning business formation and structures, registration, contracts, leases, partnership agreements, patents and legislation
Accountant
Provide valuable advice on all financial management issues and taxation obligations
Bank Manager
Provide information and advice on financial services, sources of finance, and basic business management
Business Enterprise Centres (BEC) Australia
A not-for-profit network of business enterprise centres which provide support to small business owners.
Chambers of Commerce
Local associations of business people, usually centred around a suburb or region
Victorian Employers Chamber of Commerce and Industry (VECCI)
The state’s main employer group and Australia’s largest multi-industry employer organisation
Small business Association of Australia and New Zealand
A lobby group that provides a forum for exchanging news and views relating to small business matters
Trade associations
Offer specific industry information and assistance
Federal government
A service to businesses of all sizes, offering access to all government departments with advice on everything from fair trading to taxation
State Government
Provides entry and links to information and support on all aspects of starting and managing a business
Local government
Offer advice on land zoning, assist with subsidised land and consider development applications
Informal Networks
Business people can use their network of friends and colleagues, as well as other local business owners to gain information and advice
Business ethics
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Socially responsible management
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Stakeholders
Any group or individual who has an interest in, or is affected by, the activities of a business
