Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

business unit 1 > exam revision > Flashcards

exam revision Flashcards

1
Q

incorporated business

A

has its own separate legal existence from the owners (private, public, gbe)
brings shareholders limited liability, meaning the most money shareholders can lose is the amount paid in shares

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

unincorporated business

A

has no separate legal existence from its owners (sole trader, partnership)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

sole trader

A

has one owner, who makes all the decisions, is responsible for the business and can be sued if business is sued

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

pros and cons of sole trader

A

pros
-low cost of entry
-complete control
-no partner disputes

cons
-personal liability for business debts
-need to carry all losses
-end of business when owner dies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

partnership

A

two or more owners, not a separate legal entity
can be verbal or in writing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

pros and cons of partnership

A

pros
-shared responsibility and workload
-pooled funds and talents
-business can operate if a partner dies

cons
-personal unlimited liability
-possibility of disputes
-difficulty finding a suitable partner

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

private limited company (Pty Ltd)

A

must have:
-at least one shareholder and a max of 50 non-employee shareholder
-at least one director

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

public limited company (Ltd/limited)

A

shares are listed on ASX
minimum of one shareholder
required to issue a prospectus when selling shares for the first time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

pros and cons of companies

A

pros
-limited liability
-long life
-easy transfer of ownership

cons
-cost of formation
double taxation (company and personal)
-public disclosure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

social enterprise

A

produces goods and services, primary objective of fulfilling a social need

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

pros and cons of social enterprise

A

pros
-open up new markets
-meeting social needs

cons
-difficulty in obtaining capital
-significant operating costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

what are government and legal regulations?

A

-the laws and rules of doing business
-businesses must follow these government and legal regulations or they will face penalties

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

examples of local, state, and federal government and legal regulations

A

local
-curfew laws
-signage rules
-permits

state
-working conditions (pay, hours, award rates)

federal
-taxes
-oh&s

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

what are business plans and features?

A

-a written statement of a business’ goals and plans for the future
features:
-financial info (profit, cost breakdown, sales, revenue)
-general info (resources, swot analysis)
-advertising/marketing info

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

benefits of business plans

A

-gives idea and direction for business
-shows where business is currently, progress made, and where you want to go

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

brick and mortar (pro, con, example)

A

-has physical locations
-face-to-face interactions and security with purchases
-expensive to start and maintain
-coles

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

online business (pro, con, example)

A

-exists money online through a website through digital presence
-able to reach customers from around the world, generally lower costs
-customers can’t see or try items before purchasing, scams
-spotify

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

direct-to-consumer (pro, con, example)

A

-sells directly to consumer without intermediaries
-connections with customers, customer loyalty, save on costs
-time-consuming and less efficient than selling to retailers
-glossier

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

franchise (pro, con, example)

A

-someone buys the rights of an existing business
-starting with established business name
-little chance to make independent decisions
-7-11

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

importer/exporter (pro, con, example)

A

-generates sale revenue by trading goods
-fulfils market need
-risks, must be aware of legal requirements
-mining/ore/fuel

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

corporate social responsibility - csr

A

the idea that a business should be go above and beyond the legal requirements
-a failure to act in a socially responsible manner can result in boycotts
-acting socially responsible can attract customers, and benefits staff morale, and greater employee retention

22
Q

examples of csr - environment

A

-eco-friendly and sustainable products/materials
-recycling where possible
-reduce waste (waste reduction plans etc)

23
Q

examples of csr - employees

A

-ensure employees get their breaks
-be pro union
-recognition and rewards for staff
-healthcare/other benefits
-flexible work arrangements

24
Q

examples of csr - customers

A

-loyalty programs
-high quality customer service
-be respectful and understanding with customer issues and complaints

25
Q

examples of csr - local community

A

-donate to charity
-free food/helping people in need
-employ disadvantaged people
-support social campaigns

26
Q

business support services

A

-a service available to businesses to help them succeed
-setting up a business is costly and has a steep learning curve, so you need outside advice

27
Q

examples of business support services

A

-government programs, grants, mentoring
-lawyers, accountants, tax consultants
-business organisations/associations (australian business chamber)

28
Q

natural business resources

A

-resources taken from the environment
-land, water, power/electricity

29
Q

capital business resources

A

-machinery and equipment
-sales systems, tools, checkout systems

30
Q

labour business resources

A

-employees/workers
-basic/frontline workers, managers, CEOs, barista etc

31
Q

characteristics of managers

A

-manages businesses, employees
-in charge of projects
-oversees day to day operations
-fires/hires staff

32
Q

characteristics of entrepreneurs

A

-takes risks
-has a vision for business/future
-independent, starts on their own
-identify gap in the market
-not always involved in day-to-day running of the business

33
Q

internal environment and examples

A

factors which the business has full control over
-business structure
-business model
-location

34
Q

external environment and examples

A

factors which the business has little to no control over
-customers
-competition
-suppliers

35
Q

technological changes and impacts

A

-technology is changing and improving all the time
-businesses need to be aware and adapt to be successful
impacts:
-good: better efficiency, reduced costs, new product ranges
-bad: short life-cycle for tech, implementation issues, less employees needed

36
Q

business goals

A

-something the owner wants to achieve (can be social or financial)
-businesses need to set goals to give business direction for future
-social goals: donate to charity
-financial goal: reduce costs

37
Q

globalisation and pros and cons

A

-the idea that the world has become a single, integrated market, which creates opportunities and threats
-pros: access to larger customer markets, new partners and suppliers, option to outsource or offshore
cons: increased competition, ideas can be stolen, exchange rate fluctuations

38
Q

suppliers and why are they important?

A

-suppliers provide resources needed for use in the production process
-good relations with suppliers are important to guarantee efficient running of the business

39
Q

special interest groups

A

-organisations with a specific purpose that influences how a business operates - need to stay on ‘good side’

40
Q

specific interest groups - purpose + impact if not considered

A

purpose - encourages business to act on issue (environmental or social)
impact - potential to get cancelled

41
Q

business associations - purpose + impact if not considered

A

purpose - supports businesses
impact - miss out on industry info

42
Q

unions - purpose + impact if not considered

A

purpose - protect and push for better rights and working conditions for employees
impact - strikes

43
Q

consumer groups - purpose + impact if not considered

A

purpose - upholds customer rights
impact - loss of reputation

44
Q

operating environment

A
  • part of external environment, businesses have some control over these factors
    -suppliers, competitors, customers, special interest groups
45
Q

contribution of businesses to a nation

A

-businesses contribute to the wellbeing and prosperity of a nation in many ways
-economic: employment, economic growth, tax revenue for gov, export earnings which is good for trade
-social: sense of purpose and belonging, social connections, community engagement, csr

46
Q

business locations

A

-success can be determined by location
-important factors:
-closeness to customers, suppliers, and competitors
-visibility
-cost
-foot traffic
-zoning laws

47
Q

shopping centre pros and cons

A

pros: complementary businesses, foot traffic
cons: rent, theft, parking

48
Q

online based pros and cons

A

pros: no rent
cons: hacks/scams

49
Q

retail strip pros and cons

A

pros: foot traffic
cons: rent

50
Q

home based pros and cons

A

pros: no rent/ability to wfh
cons: hard to reach customers

51
Q

economic conditions

A

-the broad and powerful factors that impact businesses - no control
includes:
-interest rates - if they increase it can cause businesses to have loans
-rate of inflation
-consumer confidence rates - how people feel about the economy
-tax rates - if they increase it can cause costs to increase, reduces overall profit
-exchange rates - important for global business

business unit 1 (5 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions