Brainscape's Knowledge GenomeTM

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


See full index

commerce > SAC revision > Flashcards

SAC revision Flashcards

1
Q

What are the three business resources

A

Natural, Labour, and Capital.

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

What are natural resources

A

Natural resources are items used by the business that comes from the natural environment. Natural resources need to be environmentally friendly products that don’t harm the environment in their use or disposal.

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

What are capital resources

A

Capital resources refer to the tools and machinery that are used in the production of goods and services. Capital resources are important as they maximise the efficiency of labour.

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

What are labour resources

A

Labour resources refer to the people which provide their skills, knowledge and effort to the business. Labour resources are human resources.

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

What do business planning tools do

A

Business planning tools are critical and they serve as a guide for what needs to be done and to measure performance.

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

What are three examples of planning tools

A

SWOT analysis, market research and a business plan

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

What is market research

A

Market research involves collecting and analysing data and information to assist the business in its understanding of potential customers and competitors

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

What is a business plan

A

A written statement of the GOALS and OBJECTIVES for the business and the STEPS to be taken to achieve them

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

What is a SWOT analysis

A

A SWOT analysis helps identify the strengths and weakness, from within the business (internally). As well as identify the opportunities and threats outside the business (externally)

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

What is a business location

A

A business location is a physical or virtual location of where a business operates. It can determine whether or not the business is accessible to potential customers and will ultimately succeed

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

What are the four types of possible business locations

A

Retail shopping strip, shopping centre, home-based businesses and online

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

What are the six factors which should be considered when choosing a business location

A

Visibility, complementary business, cost of location, proximity to suppliers, proximity (convenient) to customers and proximity to competitors.

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

What is zoning

A

Local government zoning determines where some types of businesses can operate. This means local councils allocate land for different uses, such as residential, commercial, recreational and industrial. This prevents households from being disturbed by a business operating late at night.

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

What are two sources of finances a business can fund its activities from?

A

External and internal

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

What is equity

A

Equity is when a business owner self-funds their business, also known as capital

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

examples of internal sources of funds

A

friends and family, self-funding, crowdfunding, private investors and shares

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

examples of external sources of funds

A

banks and other financial institutions, government and suppliers

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

what are some examples of short term debt

A

bank overdraft, bank bills, trade credit (a supplier allows you to pay your bills at a later date)

19
Q

What are some examples of long term debt

A

a mortgage (it is a secured loan over a property owned by the business), leasing (payment for the use of equipment owned by another business).

20
Q

what are some advantages of debt

A

It means the owner can keep all the profits.

Businesses are provided with generous tax deductions for interest that are paid by the Australian tax system.

21
Q

what are the advantages of equity?

A

Equity is cheaper than any other source of finance because there are no interest payments.
It allows the business to retain control over how the finance is used.

22
Q

What considerations should be taken into account in choosing which finance to go with

A

The flexibility of the finance
The availability of the finance
The level of control maintained y the business

23
Q

what is the advantage of purchasing an established business

A

You have an existing customer base that will give you instant income
A proven track record makes it easier to obtain finance
All the stock and equipment is included and ready for sale
You have existing employees that can provide valuable knowledge and assistance
The seller may offer advice and training to you
Your reputation and goodwill

24
Q

What is goodwill

A

it is the monetary value attached to the reputation of the business

25
Q

What are the disadvantages of buying an existing business

A

The business may have a poor reputation and this may be difficult to change
The success of the business may have been due to the previous owner’s personality and contacts and this may be lost when the business is sold
Some employees may resent the change to the business and may leave

26
Q

What should be considered when purchasing an already existing business

A

why is the business for sale
they should examine detailed financial accounts for at least the previous three years to determine the health of the business

27
Q

Why would you start a new business from scratch?

A

Because the individual has recognised there is a gap in the market
has developed a new product or service

28
Q

what are the benefits of setting up a new business

A

The owner has the freedom to set up the business exactly as he or she wants
the owner can determine the pace of growth and change
There is no goodwill that the owner has to pay
if funds are limited it is possible to begin on a smaller scale

29
Q

what are the costs (disadvantages) of setting up a new business

A

There is a high risk of uncertainty
without a previous business reputation, it may prove difficult to get finance
time is needed to develop a customer base, employ staff and develop lines of credit from suppliers
if the start-up period is slow then the profits may not come from some time

30
Q

what is a business model

A

it is the way in which the business will run its operations to generate a profit. it acts as a general framework for how the business will earn its income and function on a day to day business.

31
Q

what types of business models are there

A

online business (main operations revolve around the internet eg google, eBay). Bricks and mortar (this is a traditional business with a physical location eg a local milkbar. Import and export (deals with international trade of goods eg Nobel grain Australia. Franchise (licensed to operate under the business model of an already existing business eg subway. Social enterprise (this aims to improve the wellbeing of others eg ygap.

32
Q

what are key elements to be considered as part of planning a business model

A

what is the main goal of the business
what types of goods and services will the business offer
who are the target customers
how will the business sell these goods and services

33
Q

What is the definition of the social enterprise model

A

it is a business model that aims to improve the well-being of others through its business activities. crowdfunding is often used for raising money for social enterprises

34
Q

what is incorporation

A

it is the process that a business goes through to become a registered company and a separate legal entity many businesses that have begun as sole traders or partnerships may find that as their business grows there are advantages to changing the ownership structure to that of a company. once a company is incorporated the company has a separate legal identity from its owners who are now known as shareholders.

35
Q

what is a shareholder

A

the owner of a company who is entitled to a share of its profits

36
Q

what are the two major forms of incorporated business ownership

A

private limited companies and public listed companies

37
Q

define what a private limited company is

A

it is the most common type of business structure in Australia and has a minimum of one shareholder and a maximum of fifty non-employee shareholders. it must have at least one director. these companies tend to be small to a medium-sized, family-owned business.

38
Q

define a public listed company

A

is an incorporated business with a minimum of one shareholder and whose shares can be traded on the Australian security exchange

39
Q

what is a business plan

A

it is a written statement of the goals and objectives for the business and the steps to be taken to achieve them

40
Q

what is business planning

A

a process or series of actions to achieve an objective

41
Q

what is the role of a business plan

A

it acts as a guide or map on which the business journey can be plotted and it is one of the most useful management tools a business owner can use

42
Q

is a business plan important when arranging finance

A

yes a detailed business plan will provide information that the lenders need to know and it shows that the business is being properly organised and managed

43
Q

what are the benefits of developing a business plan

A

identify the business strengths and weakness
forces the business owner to justify their plans and actions
helps test the viability of the business
assists the business to be proactive rather than reactive and indicates the owners’ ability and level of commitment

44
Q

what things should be included in a typical business pan

A

executive summary
operations plan
financial plan
marketing plan

commerce (4 decks)

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