Defintion Flashcards
Product
Good or service that can be sold or bought
Good
Items that can be seen or touched
Services
Things done for you by others
revenue
Business income from sales of goods and services to customers
Choice
Act of selecting within alternatives
Innovation
Process of improving features of a product
Invention is creating
Risk
Possibility of loss which entrepreneurs face
Ex. Not being paid, no profit, loss of money
Quality of life
Overall wellbeing of an individual
Incorporated
Process companies go through to become a separate legal entity from owners
Unincorporated
Businesses that are not companies. Same legal entity with owner
Deregulation
Governments removal of control over a particular industry or economy sector to achieve competition
Environment protection authority
Enforces government laws regarding environment protection
Australian taxation office
EnForces taxation laws including company tax
Australian securities and investment commissions
regulates financial conduct and monitors operations of financial institutions. Companies must release reports to them
Nsw fair trading
Protect consumer rights
Regulates registration of business name
Steady state
Business maintains position
Market share is maintinaes and loyal customers are developed
Decline
Loses competitive advance
Sales fall and decline in market share
Reasons
Failed to keep up with consumer demands
Low shares
competition
Renewals
Develops new marketing strategies or new products
Growth in sales
Increase in profit and market share
Cessation
Closes down
voluntary and involuntary (liquidation)
Quality control
Involves establishing standards and measuring outputs against them
Quality reached by planning production
Total quality management
Focuses on continuous improvement in all areas not only products (kaizen)
Employment contacts
Contract highlight what is expected from an employee
Marketing segmentation
Division of the total market into small segments based on factors like Geographic demographic Personality and lifestyle Behaviour
Target market
Focus of firms marketing strategy
Management accounting
Uses Im formation reports to make business decisions
Financial accounting
Produces reports about overall positions of the business for external stakeholders to use
Cash flow
Summarizes cash transactions that have occurs over a period of time, involving cash inflow and outflow
Used for
Budgeting, managing expenses, liabilities
Income statement
Profit and loss statement, revenue statement, statement of earnings
Summary of all revenue generated and expenses incurred to earn revenue
Balance sheet
Businesses financial stability at a particular time
Shows
Business owns, owes and owners investment in business
Assets
Current: cash, accounts receivable, inventory, stock
Noncurrent: lands, buildings, factories, equipment, fixtures, trademark, vehicles
Liabilities
Current (repaid in year)- bank overdraft, accounts payable, commercial bills, prepaid expenses
Non current- long term loans, mortgage, debenture
Owners equity
Capital
Undistributedu profits
Drawings
