semester 2 exam Flashcards
What is a business name?
A business name is the official name under which a business operates.
Where do you find out if a business name has been registered?
In Australia, you can check the Australian Securities and Investments Commission (ASIC) website.
Why is it important to register a business name?
It gives legal protection, helps with branding, and ensures no one else can use the same name.
What is Trade Practices Legislation?
What might happen if a business does not follow this legislation?
It is a set of laws that ensure fair trading in business, protecting consumers and competition.
The business could face fines, legal actions, or even be forced to stop trading.
What is the ‘entity principle’ in accounting?
Why should a business have a separate bank account?
The entity principle states that the business is separate from its owners for accounting purposes.
To clearly separate business finances from personal ones, ensuring accurate financial reporting.
What are some factors a business owner should consider when establishing a bank account?
Consider interest rates, fees, customer service, and banking products that support business needs.
What is a financial control system?
Why is it important?
it is a system that monitors and manages a company’s finances, ensuring accountability and reducing fraud.
It helps improve financial performance by ensuring accurate financial data and reducing risks.
What are four factors’ businesses should consider when choosing a supplier?
Price
Quality
Reliability
Ethical standards (including CSR – Corporate Social Responsibility)
What is the difference between a policy and a procedure?
How does this ensure legal requirements are met?
A policy is a general rule that guides decision-making, while a procedure is a step-by-step guide on how to carry out a task.
A policy is a general rule that guides decision-making, while a procedure is a step-by-step guide on how to carry out a task.
What is a customer base?
What is a customer profile?
is the number of people who regularly buy your product.
customer profile is trying to identify who your typical customers are through their demographics (age, gender, education level), customer interests (activities, lifestyles, opinions, and values), customer location and environment, customer behavior and needs that the business can satisfy
What are the two types of data collection? give examples
define external and internal secondary information.
Primary – facts and figures collected from a primary source – will be collected by the business itself. Ex. Surveys or questionnaires, face to face interview, focus groups (small group discussions where researchers ask lots of questions), experiments (lab tests), taste sets.
Secondary – information that has already been collected by someone else for another purpose. Ex. Divided into two methods, internal and external.
Internal – within the business, annual reports, company records, financial statements, customer feedback, or sales reports.
External – published data outside the business, ABS reports, newspaper reports, magazines, trade associations.
What are the 3 steps of market research?
Work out what you need
- Collect the data (primary and secondary)
- Analyse and interpret the information.
What are the 4 target market attributes? explain
market dimensions: size of the market we may be advertising to (mass or niche).
segments: Very little businesses will sell their products to the entire market. A business will divide the total market into distinct market segments.
consumer trends: What is going on in the marketplace? What is it that consumers want from a business?
behavior: sociocultural (different nationalities or ethnicities will influence the way you purchase your goods) or economic (willingness to spend)
What are the two types of market dimensions? Explains? Give examples.
Mass market - Products that are offered to every customer and promoted through mass media or mass retailers. Ex. McDonalds/Pepsi/ Kellogg’s
Niche market - smaller market with similar characteristics. Ex. Rowville Secondary College – only targets elite athletes, the market would be those wanting to do high school in an environment where they are valued as athletes.
What are the 7ps in marketing (marketing mix)? expain.
product:
A good or service that can be offered in an exchange for the purpose of satisfying a need or want. Often describes as the most important of all the 7ps.
price:
The amount of money the customer pays to be able to enjoy a product.
place:
Making the product available to the customer, wherever the customer chooses to purchase it.
promotion:
Refers to the methods used by a business to inform, persuade and remind a target audience about its products and services.
people:
Everyone who is involved in the product of a business whether they are in direct contact with customers or have an indirect connection.
physical evidence:
everything that the customer sees when interacting with the business.
* Features of the product.
* The physical environment experienced by the customer.
* Use of customer feedback – reviews
process:
The about the purchasing experience. It will include how the customer finds out about the product, how do they choose the product, how do they purchase the product, the delivery of the product.
