Chapter Two-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 improving an existing one
Research and Development
Research and development (R&D) 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
Partnership
A partnership is an unincorporated legal business structure with a minimum or two and a maximum of 20 owners
Silent Partner
A silent or sleeping 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
Shareholder (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 that 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
Public companies are listed on the Australian Stock Exchange and can have an unlimited amount of shareholders
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 beneficiaries
Goodwill
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
Franchisee
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 Businesses
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
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
Valuable contact who can provide information and advice on financial services, sources of finance, and basic business management
Business Enterprise Centres (BEC) Australia
Not-for-profit network of business enterprise centres which provide support to small business owners. These centres provide information, mentoring, training programs, workshops and seminars, referrals to accountants, solicitors and government programs, and access to networks of other businesspeople
Chambers of commerce
Local associations of businesspeople, usually centred around a suburb or region. They provide legal and financial help, taxation advice, an explanation of legislation, and industrial relations information
Victorian Employer Chamber of Commerce and Industry (VECCI)
The state’s main employer group and Australia’s largest multi-industry employer organisation. It is 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 Zealans
Provides a forum for exchanging news and views relating to small business matters
Trade Associations
Offer specific industry information and assistance
Federal Government
Operates a website, www.business.gov.au, as 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
Network of friends and colleagues, as well as other local business owners to gain information and advice
Business Ethics
Business ethics is the application of moral standards to business behaviour
Socially Responsible Management
Socially responsible management is managing an organisation in such a was that the broader social welfare of the community is taken into consideration when making business decisions
Stakeholders
Stakeholders are individuals or goups with an interest in the success of the business
