Define Flashcards
environmental sustainability
a systematic and process driven approach to controlling the aspects of a business that have a significant impact on the environment. it can be applied to any business of any size to demonstrate the company’s commitments to on going environmental issues on both a local and national scale
supply chain
A supply chain is the network of suppliers from which the business purchases resources. it typically starts with the sourcing of natural resources, followed by manufacturing activities such as component construction and assembly
Union
Labour unions or trade unions are organizations formed by workers from related fields that work for the common interest of its members. They help workers in issues like fairness of pay, good working environment, hours of work and benefits.
customer
customers are the groups of individuals that purchase the goods and services of a business. customers are essential for business success as they are the reason for why a business exists
Competitor
the businesses or individuals that offer rival goods and services. they are important for business planning since it is a must to respond to any change in the action of competitors
resources
the requirements needed to run a buisness. A resource can be anything from natural e.g. raw materials, Labour e.g. employees and capital such as machinery
internal environment
is made up of elements created by the people within the business. in an internal environment, the business has control over factors such as location, resources, sources of finance, equity, business structure and models
operating environment
is made up of stakeholders external to the business which have a direct impact on the operation of the business. the four main stake holders are customers, competitors, suppliers and special interest groups
the external environment
comprises the conditions and trends in the economy and society within which the business has no control over. factors that business have no control over are;
Political and legal influences, societal attitudes, economic conditions, technological issues and global issues
Sole Trader
a Buisness structure where one owner operates the business. The owner takes responsibilities for the operation of the business
Sole Trader - Benefits and Costs
Advantages
-Inexpensive and easy to set up, Complete Control and less gov regulations
Disadvantages
-Diffucult to operate when sick, hard to finance, someone else can take it down.
PartnerShip
A Business that is owned by 2-20 partners. There is no seperate legal entity and it is a uniccoperated ownership structure (Voula and Son Plumbers)
Partnership - Benefits and costs
Advantages
- Risk is shared, low start up cost and workload is shared
Disadvantages
-Divided loyalty and authority, Personal unlimited liabily and that it could be threatened if a partner leaved
Private Limited company
A structre with 2-50 stakeholders in which they are legally seperate from the business. (eg Family Business) To be A PL company they have to be registerd with ASIC
Private Limited company- Benfits and costs
Advantages
-Limited liability, growth potential and greater source of finance
Disadvantages
- Higher degree of complexity in establishment, cost of formation and double taxation
