Key Terms Flashcards
1
Q
Prospectus
A
A formal document of invitation to the public and potential investors to purchase shares in a particular company
2
Q
Proprietor
A
the owner of a business, or a holder of property.
3
Q
Define Partnership (not buisness type)
A
a legal form of business ownership where two or more people (partners) work together and who share profits and the responsibilities of operations
4
Q
partnership agreement
A
a formal document which outlines the duties and responsibilities of the parties to a partnership
5
Q
Unlimited liability
A
Is the complete responsibility an owner has for a business’s debts.
6
Q
Debts
A
are the sums of money a business owes to banks, suppliers or even customers.
7
Q
Profits
A
are the amount remaining after all expenses are deducted from a business’s income.
8
Q
Perpetuity
A
the state of lasting forever
9
Q
Limited liability
A
Limited liability is the protection of a shareholder’s personal assets against any business debt.
10
Q
Personal income tax
A
is a portion of an individual’s earnings that is paid to a government for public services such as roads, schools and hospitals.
11
Q
Company tax
A
is the portion of profits a business pays to the government for public services such as the police, courts and fire services.
12
Q
Director
A
is the manager of a particular area of a company often selected for their expertise.
13
Q
Incorporated
A
is a business being established as a separate legal entity from the owners
14
Q
Shareholders
A
are part-owners of a business as they purchase company shares.
15
Q
Unincorporated business
A
A business that does not possess a separate legal identity from its owner(s). The owner(s) bear full liability for any action or inaction of the business
16
Q
shares
A
are the units of ownership of a business that it sells to raise funds
17
Q
Private sector
A
part of the economy operated by private individuals, groups or institutions
18
Q
Public sector
A
part of the economy operated by the government
19
Q
Open market
A
is a public arena where people can buy and sell items of commercial value freely.
20
Q
Australian Securities Exchange (ASX)
A
The primary exchange for securities in Australia, the electronic market where Australian public company shares are bought and sold.
21
Q
Share price
A
is the value of a single share of a company that it can be bought or sold for
22
Q
Dividends
A
are regular sums of money paid out to shareholders from a business’s profit.
23
Q
Goods and Service Tax (GST)
A
a broad-based tax of 10% on the supply of most goods and services sold or consumed in Australia
24
Q
Company
A
a separate legal entity (incorporated body) that is subject to the requirements of the Corporations Act 2001, owned by shareholders who have limited liability, run by directors and has perpetual succession
25
Australian Securities and Investments Commission (ASIC)
the independent Australian body acts as Australias corporate regulator which enforces and regulates company and financial laws to protect Australian consumers, investors and creditors.
26
Australian Company Number (ACN)
nine-digit number to be used on a company's common seal and all public documents involving the company
27
social entrepreneur
a person who establishes an enterprise with the aim of solving social problems effecting social change
28
Revenue
is the amount of money a business makes from its normal business activities.
29
Expenses
are the costs of running a business.
30
Market share
is a business's percentage of total sales within an industry
31
Vested interest
is a strong connection to a business that can lead to personal gain or benefit.
32
Ethically
is the alignment to current moral standards.
33
Conditions
are the terms that an employee and employer agree to including job responsibilities, hours of work, dress code and leave entitlements.
34
ethics
a set of moral principles that a business needs to establish and follow
35
Australian Competition and Consumer Commission (ACCC)
government authority responsible for administering the Competition and Consumer Act 2010 and for promoting and educating how to provide good business practices for a fair and efficient marketplace
36
communication flow
Communication flow is the direction of the transfer of information between managers and employees.
37
Centralised control
is one person having concentrated authority to make decisions.
38
Decentralized control
is multiple people having the authority to make business decisions.
39
Franchise
franchise is a business model that licenses the business's name, product and procedures to people outside the business, also known as franchisees.
40
Franchisees
Franchisees are individuals who become business owners by purchasing the right to trade using another established business's brand, products, and processes.
41
Vision
Vision is the aspirational purpose of a business for owners, managers and employees. Examples include: Disney - 'to make people happy' Instagram - 'capture and share the world's moments'.
42
Policies
are the formal and written rules of a business
43
Mission statement
is a formal summary of the core focus of business apart from profit.
44
Vision statement
is a formal summary of a business's long term objective.
45
Rituals
are practices within a business that occur regularly.
46
strategy
a plan of action that aims to achieve a specific objective
47
Motivation
is a need or desire that directs, energizes and sustains a person’s behavior.
48
Living wage
is the minimum income an employee needs to afford basic shelter, food, and other necessities.
49
OH&S regulations
are the occupational health and safety rules and laws that aim to protect the wellbeing of employees and the public
50
Job security
is the likelihood of an employee keeping their job.
51
Production quota
is a goal for how many products are to be made within a specific time period.
52
Remuneration
is the money paid to an employee by an employer in exchange for completing work tasks.
53
Pay rise
is a permanent increase in an employee’s salary or hourly. wage rate
54
Bonus
is a one-off payment made for meeting a set objective. It is provided in addition to an employee’s regular salary
55
Commission
is a payment provided to an employee for selling a good or service. It is usually paid as a percentage of the price of the goods or services being sold.
56
Productivity
is a measure of performance that indicates how inputs are required to produce an output,
57
Mentoring
Mentoring is a senior employee assisting a junior employee in developing the skills and knowledge needed for their work.
58
Entitlement issues
Entitlement issues are legal obligations an employer owes to employees following the termination of their employment.
59
Transition issues
Transition issues are social and ethical concerns a manager can consider when terminating employment
60
Termination
is ending the employment contract between an employee and the business.
61
Exit interviews
Exit interviews are discussions held between an employer and the leaving employee and are used to identify the reasons for an employee deciding to no longer be a part of the business.
62
Unfair dismissal
Unfair dismissal is an employee being dismissed for an invalid or unjust reason.
63
Annual leave
Annual leave is paid time off work that is provided to an employee when they are not working. Businesses often have a limit to the amount of leave they provide employees with.
64
Long service leave
Long service leave is an extended period of paid leave that is granted to an employee after a sustained period of work at a single business
65
Workplace relations
Workplace relations is the interactions between employers and employees, to achieve wages and conditions that satisfy both the business and employees.
66
Employment contracts
are legal documents which outline the wages and conditions of employees within a business.
67
National employment standards (NES)
are minimum wages and conditions set out by the FWC
68
Collective bargaining
is the process of negotiation between employers and employees, or their chosen representatives, to reach an agreement regarding their wages and conditions of employment..
69
Negotiation
is the process of two or more parties coming to a mutual agreement.
70
Dispute
A dispute is a conflict between workplace participants as a result of a disagreement.
71
Legally binding decision
A legally binding decision is a judgement that requires and prohibits certain actions of parties to a decision which is enforceable by law. Failure to follow this decision can result in legal consequences.
72
Productivity
Productivity is the number of goods or services that are produced compared to the number of resources used in the production process
73
Raw materials
Raw materials are unprocessed substances used to produce goods and services.
74
Manufacturing Business
Manufacturing businesses use raw materials and resources to produce a finished physical good.
75
Service buisnesses
Service businesses provide intangible products, usually with the use of specialised expertise.
76
Tangible
Tangible is the ability to be touched.
77
Capital intensive
Capital intensive is using a high degree of machinery and equipment during the production process.
78
Inventory
Inventory are resources and finished goods held as stock.
79
Standardized goods
Standardized goods are goods that are produced consistently and are virtually identical to one another.
80
Intangible
Intangible is something that cannot be touched.
81
Labour intensive
Labour intensive is having a high degree of employee involvement during the production process.
82
Stock
Stock is the materials stored for production or goods stored for sale.
83
Quality
Quality is a good or service’s ability to satisfy a customer’s needs.
84
Reactive
Reactive is responding to a situation after something has occurred.
85
Proactive
Proactive is performing actions to prevent problems before they occur
86
Quality circles
Quality circles are small groups of employees who meet to discuss and create solutions to problems related to quality.
87
Waste
Waste is any material or resource that is discarded because it cannot be further used in the production process.
88
Wholesalers
Wholesalers are businesses that store and distribute manufactured goods to retailers.
89
Retailers
Retailers are businesses that purchase goods from a wholesaler and resell them to customers.
90
Quotas
Quotas are the limitations on the number of a particular product that can be imported or exported into a country. Quotas are usually set by a country’s government.
91
Tariffs
Tariffs are taxes that have to be paid to a government for particular imports or exports.
92
Outsource
Outsource is the transfer of specific business activities to an external business.
93
Enviromental stability
Environmental sustainability is ensuring that natural resources are not permanently depleted or damaged.
94
Expenses
Expenses are the costs incurred by a business from operations.
95
Revenue
Revenue is the sum of all income that a business has generated from business activities, usually the sale of goods and services to customers.
96
Staff morale
Staff morale is the collected attitudes, satisfaction and overall outlook that employees have of the workplace. Staff morale can influence a business’s productivity, workplace safety, attendance and staff turnover
97
Productivity
Productivity is how efficient a business is at converting inputs into outputs.
98
Internal enviroment
Internal environment is the specific factors within a business which impact its performance.
99
External enviroment
External environment is the factors existing outside the business environment that have an impact on the operation of a business
100
Competitors
Competitors are other businesses within the same industry that sell similar goods or services to a business.
101
Societal attidudes
Societal attitudes are the collective values, beliefs, and views of the general public
102
Legislation
Legislation are the laws and legal regulations that a business has to follow.
103
Innovation
Innovation is the process of altering and improving or creating new products or procedures.
104
Globalisation
Globalisation is increased trade between countries due to reduced trade barriers. Globalisation has increased due to advancements in technology, particularly in communication and transport.
105
Chief exucetive officer (CEO)
Chief Executive Officer (CEO) is the highest ranked individual in a private or public company and is in charge of making major business decisions.
106
Industrial action
Industrial action is steps taken by employees or employers to settle a workplace dispute about working conditions. Employees can delay, limit or refuse to work. In contrast, employers can lock employees out of a workplace.
107
Organisational inertia
Organisational inertia is the tendency for a business to maintain established ways of operating.
108
Competitive advantage
Competitive advantage is the conditions or attributes that places a business in a superior position compared to its immediate competitors.
109
Cost concious customers
Cost-conscious customers also known as price-sensitive customers, purchase products or services primarily based on price. If another business offered a cheaper alternative, these customers would likely switch immediately
110
Profitability
Profitability measures the profit of a business relative to the size of its revenue. A business may generate profit but may not be as successful as other businesses in the same industry
111
Profit margin
Profit margin calculates and expresses the profitability of a business. Calculated through Net profit/Net revenue
112
Economics of scale
Economies of scale is the cost savings a business experiences when it produces a large number of goods. The cost savings typically come from spreading fixed expenses over the larger number of goods or receiving discounts from suppliers when purchasing in bulk.
113
Barriers to entry
Barriers to entry are obstacles or high costs that prevent new competitors from entering an industry. Typical barriers include government regulations, intellectual patents or high capital investment.
114
Percieved value
Perceived value is a customer’s opinion on the benefits they receive when they purchase a product or a service. For example, a customer decides to purchase a more expensive product over a cheaper product because he/ she believes that the business reputation, the quality of materials used or the unique features of the product are worth the higher price.
115
Point of differientiation
Point of differentiation is the unique selling features or elements that positively distinguishes a business’s product or service from its competitors.
116
Change Management
Change management is the process of implementing approaches that prepares an organisation undergoing a transformation.
117
Labour recources
Labour resources are the mental and physical abilities of workers that can be used to produce goods and services. Types of labour resources can include production line workers, data analysts and human resource employees
118
Capital recources
Capital resources are man-made goods used in the production of final goods and services. These may include, machinery, vehicles or tools.
119
Natural recources
Natural resources are raw materials that are used in the production of goods and services. These include resources such as land, water or coal.
120
