Commerce AT4 Flashcards
What are goods and services?
Goods are physical/tangible, services are non-physical/intangible
What is wealth?
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
Wants and needs
Wants are what a person wants and needs are necessities of life
Economic resources:
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).
Fixed and variable expenditure
Fixed expenditure does not change and variable does change month to month
Personal Factors that affect financial decisions
Age
Convenience
Culture
Disposable income
Gender
Environment considerations
7ps of marketing
Product
Price
Promotion
Place
People
Process
Physical evidence
Factors which influence the decision to spend or save:
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
What is the distribution chain?
Manufacturer: Makes goods or products
Wholesaler: buys goods in large quantities from the manufacturer
Retailer: sells goods from Wholesaler for a profit
Supply chain
Raw material
Manufacturer
Distributors
Wholesalers
Retailers
End user/consumer
What are the laws of commerce
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)
Writ for the levy and garnishee order
Writ for levy they seize and sell property. Garnishee order money called from sources or income
Payments of method that i don’t know
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
What are the 4 types of loan
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
Factors of ability to repay
Proof of income, bank statements and personal information/records
4 aspects of a contract
Offer - agrees price
Acceptance - accepts price
Consideration - value passed through
Legal relations - enforcement
4 factors of a credit report?
Personal details, credit history, repayment history, other information
3 outcomes of a grievance (employee complaint)
Supervisor or union representative determines that it is not valid
The grievance may be resolved
Not satisfied, move onto next step
What are the two organisational structures and their features
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
Prospectus
Documents about financial security for potenti buyers of a company
Types of regulations
Taxes, licences, competition, workers, processors
Promotional strategies
Personal selling
Relationship marketing
Sales promotion
Publicity
Public relations
Asvertisint
3 elements of a balance sheet
Financial position of business
3 sets of accounts: assets, liabilities and owners equity
Total assets = liabilities + owner equity
Owners equity
Value of business to owners, equity = assets. - liabilities
5 types of employment
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
3 types or employment contracts
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
Industries
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%
Resolving disputes
Negotiation - settlement between 2 parties
Mediation - third party helps settle
Conciliation and arbitratation - fair work comission makes legal decidion based on evidence
Superannuation
10.5 percent, applicable to those that make 450 a month and work more than 30 hours a week
4 types of tourists
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
