CHAPTER TWO – SMALL BUSINESS DECISION MAKING REVISION Flashcards
Demand
In Business terms, demand is the quantity of a product that consumers are prepared to purchase.
Entrepreneurship
Entrepreneurship is the ablity and willingness to start, operate and assume the risk of a business venture in the hope of making a profit.
Partnership
A partnership is an unincorporated legal business structure with a minimum of two and a maximum of 20 owners.
Proprietary company
A proprietary (private) company is an incorporated business with a minimum of two, and a maximum of 50 private shareholders.
Franchise
A franchise means buying the rights from another business to distribute its product under its name.
Solicitor
Solicitors provide infromation concerning business formation and structures, registation, contract,lease, partnership agreements, patents and legislations.
Victorian Employers Chamber of Commerce and Industry (VECCI)
VECCI is the state’s main employer group and Australia’s largest multi-industry employer organisation.
Local government
aLocal councils offer advice on landing zoning, assist with subsidised land and consider development application.
Market research
Market research is a process of systematically collecting, recording and analysing information concerning a specific market.
Business Entity
A business entity is any organistion engaged in the production of goods and services.
Silent partner
A silent or sleeping partner contributes financially to the business but takes no part in the running of the partnership.
Public Company
A public company is 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.
Franchisor
A franchisor is an individual or organisation that grants a franchise.
Accountant
Complementary businesses provide valuable advice on all financial managments issues and taxation oblugations.
Small Business Association of Australia and New Zealand
This lobby group provides a forum for exchanging news and views relating to small business matters.
Informal networks
Business people can use their network of friends and colleagues, as well as other business owners to gain information and advice.
Market conditions
Market conditions are the features of a market into which a new product or service is to be introduced, include factors such as the number of potential customers, levels of competition and potential for growth.
Incorporated business
A business that is Incorporated has a separate legal entity from the owner(s).
Incorporation
Incorporation is the process that businesses go through to become registered company and a separate legal entity.
Cooperative
A cooperative is a democratic organisation owned nd controlled by the people it serves, who join together for a common benefit.
Franchisee
A franchisee is an individual or organisation that purchases a franchise.
Bank Manager
Bank Managers are another valuable contact who can provide information and advice on financial services, sources of finance, and basic business management.
Trade associations
Trade associations offer specific indusrtu=y information and assistance.
Business ethics
Business ethics is the application of moral standards to business behaviour.
Innovation
Innovation is either creating a new product, service or process, or significantly improving an existing one.
Sole trader
A sole trader (proprietor) business is a business owned and operated by one person.
Shareholders
Shareholders (or members) are the owners of the company.
Trust
A trust is a business structure where a trustee (usually a company) holds property or carries out a business on behalf of the members of the trust, known as beneficiaries.
Zoning
Zoning is a means by which local councils allocate land for different uses, such as residential, commercial, recreation and industrial
Business Enterprise Centres (BEC) Australia
BEC Australia is a not-fot-profit network of business enterprise centers which provide support to small business owners.
Federal government
The federal government operates a website, ww.business.gov.au, as a service to businesses of all sizes, offering access to all government department advice on everything from fair trading to taxation.
Socially responsible management
Socially responsible management is managing an organisation in such a way that the broader social welfare of the community is taken into consideration when making the business decisions.
Research and Development
Research and Development (R&D) is a set of activities undertaken to: import existing products, create new products and improve production.
Unlimited liability
Unlimited liability means the business owner is personally responsible for all the debts of his or her business.
Limited liability
Limited liability means that the shareholders in the company cannot be held personally responsible for the debts of that business.
Goodwill
Goodwill is the monetary value attached to the reputation of a particular business.
Complementary businesses
Complementary businesses offer products or services that are related to a different business and that may be of use tot eh customers of the business.
Chambers of Commerce
These are local associations of business people, usually centered around a suburb or region.
State government
In Victoria, the Department of Business and Innovation’s Business Victoria website (wwwbussiness.vic.gov.au) provides entry and links to information and support on all aspects of starting and managing a business.
Stakeholders
Stakeholders are individuals or groups with an interest in the success of the business
