Commerce AT4

Question 1

What are goods and services?

Answer 1

Goods are physical/tangible, services are non-physical/intangible

Question 2

What is wealth?

Answer 2

the collection of objects of value (including savings, a car, a house, investment property etc) that the consumer has that they could sell in order order to purchase different goods and services

Question 3

Wants and needs

Answer 3

Wants are what a person wants and needs are necessities of life

Question 4

Economic resources:

Answer 4

An economist refers to four resources within an economy:
land (all natural resources),
labour (the hours of workers),
capital (goods used in production and loans)
Enterprise (entrepreneurial spirit to assemble the resources and start a business).

Question 5

Fixed and variable expenditure

Answer 5

Fixed expenditure does not change and variable does change month to month

Question 6

Personal Factors that affect financial decisions

Answer 6

Age
Convenience
Culture
Disposable income
Gender
Environment considerations

Question 7

7ps of marketing

Answer 7

Product
Price
Promotion
Place
People
Process
Physical evidence

Question 8

Factors which influence the decision to spend or save:

Answer 8

Income - When a person has lower income, they save more proportionally.
Age - A younger person will spend more of their income
Location - Cost of living
Wealth - A person who is wealthy spends more

Question 9

What is the distribution chain?

Answer 9

Manufacturer: Makes goods or products
Wholesaler: buys goods in large quantities from the manufacturer
Retailer: sells goods from Wholesaler for a profit

Question 10

Supply chain

Answer 10

Raw material
Manufacturer
Distributors
Wholesalers
Retailers
End user/consumer

Question 11

What are the laws of commerce

Answer 11

Australian Consumer Law
Fair Trading Act 1987
Competition and Consumer Act 2010( Australian Consumet and Conpetition Comission)
Racial discrimination Act 1975 (Commonwealth)
Sex discrimination act
Disability discrimination act
Age discrimination act
Affirmative discrimination act- provide EEO (equal employment opportunities)

Question 12

Writ for the levy and garnishee order

Answer 12

Writ for levy they seize and sell property. Garnishee order money called from sources or income

Question 13

Payments of method that i don’t know

Answer 13

Direct debit - third party transfer from bank account, auto payments
Lay by- paying a deposit to secure purchase later
Bnpl - buy now pay later, you pay in increments

Question 14

What are the 4 types of loan

Answer 14

Home loan - 25 years, must sign mortgage which means if not payed property is sold to recoup losses (lower interest rate as secured)
Personal loan- short term loan to buy personal items (higher interest rate as less secured)
Credit card - loan to bank at end of month, high interest if not payed on time
Small business loan - loan yo start business must provide security

Question 15

Factors of ability to repay

Answer 15

Proof of income, bank statements and personal information/records

Question 16

4 aspects of a contract

Answer 16

Offer - agrees price
Acceptance - accepts price
Consideration - value passed through
Legal relations - enforcement

Question 17

4 factors of a credit report?

Answer 17

Personal details, credit history, repayment history, other information

Question 18

3 outcomes of a grievance (employee complaint)

Answer 18

Supervisor or union representative determines that it is not valid
The grievance may be resolved
Not satisfied, move onto next step

Question 19

What are the two organisational structures and their features

Answer 19

Unincorporated businesses:
Sole trader- One person business, unlimited/full liability, easy and cheap
Partnership - multiple ownership, unlimited/full liability, efficiency

Incorporated business:
Private company (ltd) can have 1 to 50 shareholders, separate legal entity, limited liability meaning personal assets not sold

Public company (ltd) - Unlimited shareholders, ASX, published financials

Question 20

Prospectus

Answer 20

Documents about financial security for potenti buyers of a company

Question 21

Types of regulations

Answer 21

Taxes, licences, competition, workers, processors

Question 22

Promotional strategies

Answer 22

Personal selling
Relationship marketing
Sales promotion
Publicity
Public relations
Asvertisint

Question 23

3 elements of a balance sheet

Answer 23

Financial position of business
3 sets of accounts: assets, liabilities and owners equity
Total assets = liabilities + owner equity

Question 24

Owners equity

Answer 24

Value of business to owners, equity = assets. - liabilities

Question 25

5 types of employment

Answer 25

Casual - on and off, 25% loading, no benefits, flexible
Part time - less than 38 hours per week, benefits
Full time- average 38 hours weekly, accrues benefits of super, leave and income
Apprenticeship- training for 3-4 years
Contracting - commission based, pay their own salary

Question 26

3 types or employment contracts

Answer 26

Award - Employees minimum pay and conditions, non negotiable

Enterprise agreement - award made ar workplace enterprise level, BOOT test

Common law - Employers and individuals contract pay and conditions

Question 27

Industries

Answer 27

Primary - production of raw material, 3%
Secondary - manufacturing of raw products 17%

Tertiary - involved in providing services
Quaternary- process of information
Quinary- domestic services
80%

Question 28

Resolving disputes

Answer 28

Negotiation - settlement between 2 parties
Mediation - third party helps settle
Conciliation and arbitratation - fair work comission makes legal decidion based on evidence

Question 29

Superannuation

Answer 29

10.5 percent, applicable to those that make 450 a month and work more than 30 hours a week

Question 30

4 types of tourists

Answer 30

Organised mass tourist - Pre paid, fully organised itinerary with other people

Individual mass tourist - Package purchased and more control than organised mass tourist

Explorer - arranges own trip, slightly more devilish, community engagement

Drifter - identifies as local, takes risk, avoids others