Chapter 2 Small Business Decision Making Flashcards
Demand
Demand is the quantity of a product that consumers are prepared to purchase
Market Research
Market research is a process of systematically collecting, recording and analysing information concerning a specific market
Market Conditions
Market conditions 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
Innovation
Innovation is either creating a new product, service or process, or significantly improving an existing one.
Research and Development
Research and development is a set of activities undertaken to: improve existing products, create new products and improve production.
Entrepreneurship
Entrepreneurship is the ability and willingness to start, operate and assume the risk of a business venture in the hope of making a profit.
Business Entity
A business entity is any organisation engaged in the production of goods and services.
Incorporated Business
A business that is incorporated has a separate legal entity from the owner/s.
Sole Trader
A sole trader (proprietor) business is a business owned and operated by one person.
Unlimited Liability
Unlimited liability means the business owner is personally responsible for all the debts of his or her business.
Proprietary Company
A proprietary (private) company is an incorporated business with a minimum of two, and a maximum of 50 private shareholders.
Public Company
A public company is a company whose ownership is dispersed among the general public in many shares of stock which are freely traded on a stock exchange
Cooperative
A cooperative is a democratic organisation owned and controlled by the people it serves, who join together for a common benefit.
Trust
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 the beneficiaries.
Goodwil
Goodwill is the monetary value attached to the reputation of a particular business.
Franchise
A franchise means buying the rights from another business to distribute its products under its name.
Franchisor
A franchisor is an individual or organisation that grants a franchise.
Frachisee
A franchisee is an individual or organisation that purchases a franchise.
Zoning
Zoning is a means by which local councils allocate land for different uses, such as residential, commercial, recreational and industrial.
Complementary Business
Complementary businesses offer products or services that are related to a different business and that may be of use to the customers of that business.
Solicitor
A solicitor a member of the legal profession qualified to deal with the drawing up of wills, and other legal matters
Accountant
A person whose job is to keep or inspect financial accounts.
Bank Manager
A person in charge of a local branch of a bank.
Partnership
A partnership is an unincorporated legal business structure with a minimum of two and a maximum of 20 owners.
Silent Partner
A silent partner contributes financially to the business but takes no part in the running of the partnership
Incorporation
Incorporation is the process that businesses go through to become a registered company and a separate legal entity.
Shareholders
Shareholders or members are the owners of a company.
Limited Liability
Limited liability means that the shareholders in a company cannot be held personally responsible for the debts of the business.
Business Enterprise Centres (BEC) Australia
Networks of business enterprise centres which provide support to small business owners
Chambers of Commerce
Local associations of businesspeople, they provide legal and financial help, taxation advice, an explanation of legislation, and industrial relations information
Victorian Employers Chamber of Commerce and Industry (VECCI)
The state’s main employer group, concerned primarily with human resources and industrial relations issues, and provides support for members who may be in dispute with their employees
Small Business Association of Australia and New Zealand
Lobby group provides a forum for exchanging news and views relating to small business matters, organises training days and promotes the role of small business and how its important in the economy
Trade associations
Offer specific industry information and assistance (eg. specific details about product development and industry trends
Federal government
Offers 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 subsided land and consider development applications
Informal networks
Businesspeople can use their network of friends and colleagues, as well as other local business owners to gain information and advice
