Commerce Flashcards
Democracy definition
A system of government of elected representatives
Majority rule definition
The principle that the greater number should exercise greater power
Federation definition
The joining together of states to form one nation
Constitutional monarchy definition
Form of government in which a king or queen acts as head of state
Current Governor General is..?
Peter Cosgrove
What are the factors of demand?
Expectations Price of complementary products Controlled by consumer Price of the product itself Income Preferences Price of substitutions
What is consumer soveignty?
Consumer is king
What are the factors of supply?
Price of inputs
Price of the product
Price of other products
Controlled by produced supplier
What’s the equilibrium?
The point at which the supply equals the demand
Advantages and disadvantages of sole trader ship?
Disadvantage: all funding
Unlimited liability
Advantage: 100% profit/income
Completely owns the business and all shares
Advantages and disadvantages of partnerships?
Advantage: no shareholders
More people funding world share
Disadvantage: unlimited liability
People leaving business
Advantages and disadvantages of a private company?
Advantage: limited liability
Choose who gets shares
Disadvantage: not stock exchange
More expensive to register company name
Both: shareholder percentage stake in the business
5 elements of a business plan?
- Executive summary (one page summary of plan and ideas)
- Business objectives (guidelines of goals)
- Marketing plan (how business will attract target market and strategies)
- Operational plan (producing products, human and physical resource needed)
- Financial plan (profit forecasts, working capital, cash flow, assets and liabilities)
SWOT means..?
Strengths
Weaknesses
Opportunities
Threats
Working capital definition?
The ability of a business to meet its short-term debts. Found by subtracting current liability from current assets
Business ethics definition?
Moral guidelines and principles for the operation of a business, what is right or wrong.
Globalisation definition
The expansion of business operations into other countries
Tariffs definition?
Are a tax on imports, designed to make consumers buy local product
Quotas definition
Are a limit on imports (eg. 10,000 cars only)
Subsides definition
Are a payment to local companies to cover their costs
Government definition
Th system of admission over a community of people
