Brainscape's Knowledge GenomeTM

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


See full index

BS > Topic 1- Nature of Business > Flashcards

Topic 1- Nature of Business Flashcards

The student: P1 discusses the nature of business, its role in society and types of business structure P2 explains the internal and external influences on businesses P6 analyses the responsibilities of business to internal and external stakeholders P7 plans and conducts investigations into contemporary business issues P8 evaluates information for actual and hypothetical business situation

1
Q

Business

A

the organised effort of individuals to produce and sell, for a profit, the products that satisfy individuals’ needs and wants

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

Production

A

refers to those activities undertaken by the business that combine the resources to create products that satisfy customers’ needs and want

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

Goods

A

Items that can be seen or touched

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

Services

A

An intangible product performed for someone by another person + higher involvement of people in provision of service

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

Operating expenses

A

All the costs of running the business except the cost of goods sold

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

Entrepreneurship

A

the ability and willingness to start, operate and assume the risk of a business venture in the hope of making a profit

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

Entrepreneur

A

someone who starts, operates and assumes the risk of a business venture in the hope of making a profit

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

Risk

A

refers to the possibility of a loss

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

Income

A

Money received by a person for providing his or her labour, or a business from a return on its investments

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

Wage

A

Money received by workers, usually on an hourly or daily basis, for services they provide to an employer

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

Salary

A

a fixed regular payment, usually paid on a fortnightly or monthly basis but often expressed as an annual sum, made to a permanent employee of a business

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

Dividends

A

a distribution of a company’s profits (either yearly or half-yearly) to shareholders that is calculated as a number of cents per share

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

Bonus

A

money added to a person’s wage for good performance

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

Commission

A

the % of a sales price received by a salesperson

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

Fringe benefits

A

an extra benefit supplementing an employee’s salary

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

Profit

A

what remains after all business expenses have been deducted from sales revenue

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

Wealth

A

The wealth created by businesses is redistributed to employees, lenders, business owners/shareholders, governments and to the business itself

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

Shareholders

A

people who are part owners of a company because they own a number of shares

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

Choice

A

the act of selecting among alternatives

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

Quality of life

A

refers to the overall wellbeing of an individual, and is a combination of both material and non-material benefits

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

Innovation

A

either creating a new product, service or process, or significantly improving an existing one- drives economic growth + increase living standards

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Research and development

A

a set of activities undertaken to improve existing products, create new products and improve production

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Small to medium enterprises

A

defined by the Australian Bureau of Statistics as firms with fewer than 200 full-time equivalent employees and/or less than $10 million turnover

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Medium business

A

a business with 20-199 employees

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Micro business

A

a business with fewer than five employees

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Large business

A

a business with 200 or more employees

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Geographical spread

A

the presence of a business and the range of its products across a suburb, city, state or country, or the globe

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Local business

A

a business that has a restricted geographical spread; it serves the surrounding area

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

National business

A

a business that operates within just one country

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Multinational corporation

A

a company that has branches in many different countries

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Industry

A

businesses that are involved in similar types of production

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Primary industry

A

includes those businesses involved in the collection of natural resources

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Secondary industry

A

includes businesses that take a raw material and make it into a finished or semi-finished product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Tertiary industry

A

involves people performing a vast range of services for other people

e.g., retailers, dentists, solicitors, bankers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Quaternary industry

A

includes services that involve the transfer and processing of information and knowledge

e.g., technology jobs, education, finance, telecommunication, libraries

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

Quinary industry

A

includes services that have traditionally been performed in the home

e.g., hospitality, childcare, tourism, domestic cleaning, maintenence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Incorporated

A

refers to the process companies go through to become a separate legal entity from the owner/s

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

Limited liability

A

a feature of corporate ownership that limits each owner’s financial liability to the amount of money he or she has paid for the business’s shares

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

Unlimited liability

A

when the business owner is personally responsible for all the business’s debt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

Sole trader

A

a business that is owned and operated by only one person

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

Partnership

A

a legal business structure that is owned and operated by between 2 and 20 people with the aim of making a profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

Proprietary (private) company

A

an incorporated business and usually has between 2 and 50 private shareholders

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

Public company

A

have an unlimited number of shareholders and the general public may buy or sell shares on the ASX

44
Q

Government Enterprise

A

Government-owned and operated businesses

45
Q

Prospectus

A

a document giving details of a company and inviting the public to buy shares in it

46
Q

Privatisation

A

the process of transferring the ownership of a government business to the private sector

47
Q

Venture capital

A

money that is invested in small and sometimes struggling businesses that have the potential to become successful

48
Q

Ownership

A

bringing in additional owners means giving up some control

49
Q

Float

A

the raising of capital in a company through the sale of shares to the public

50
Q

Business environment

A

refers to the surrounding conditions in which the business operates. It can be divided into two broad categories: external and internal

51
Q

External environment

A

includes those factors over which the business has very little control

52
Q

Internal environment

A

includes those factors over which the business has some degree of control

53
Q

Economic influences

A

(on a business) relate directly to their economic environment, which is dependent on changes in economic growth.

54
Q

Economic cycles

A

(or business cycles) the periods of growth (‘boom’) and recession (‘bust’) that occur as a result of fluctuations in the general level of economic activity

55
Q

Financial influences

A

changes in the global and domestic financial markets will influence the cost of borrowing money and therefore directly affect the level of investment by a business

56
Q

Deregulation

A

the removal of government regulation from industry, with the aim of increasing efficiency and improving competition

57
Q

Geographic influences

A

3 main factors: location within the Asia-Pacific region, changing demographic factors, changes in age structure

58
Q

Globalisation

A

the process that sees people, goods, money and ideas moving around the world faster and more cheaply than before

59
Q

Societal attitudes

A

the ideas, values and beliefs held by people in society

60
Q

Legal influences (regulations)

A

rules, laws or orders that businesses must follow

61
Q

Political influences

A

derived from state and federal government policies, and include free trade policies and the process of deregulation

62
Q

Federal government obligations

A

payment of taxes, provision of superannuation, abiding by relevant legislation

63
Q

State government obligations

A

provision of employee entitlements, payment of payroll taxes, abiding by pollution controls and relevant state legislation

64
Q

Local governments

A

approve development appplications, fire regulations, parking regulations, business signs

65
Q

ASIC

A

provides protection in financial services and operates the Business Names Register

66
Q

ACCC

A

administers the Competition and Consumer Act 2010 (cwlth)

67
Q

NSW EPA

A

primary environmental regulator for NSW

68
Q

NSW Fair Trading

A

provides information and assistance to individual consumers and business owners in NSW

69
Q

Employer associations

A

represent employers in negotiations + lobbying to the government

70
Q

Trade unions

A

represent employees- aim to improve pay and working conditions

71
Q

ASX

A

operates a sharemarker where companies can raise funds by issuing shares

72
Q

Technological influences

A

increase business productivity, efficiency and communication, quality of life

73
Q

Market concentration

A

refers to the number of competitors in a particular market. There are four main types of market concentration.

74
Q

Monopoly

A

complete concentration by one business in the industry (e.g. Australia Post)

75
Q

Oligopoly

A

where a small number of larger firms have a greater control over a market (e.g. car manufacturers)

76
Q

Monopolistic competition

A

where there is a large number of buyers and sellers in a particular market (e.g. local retailing shops)

77
Q

Perfect competition

A

where there is a large number of small firms that sell similar products. They are unable to differentiate products from each other and so can only use price as a way of achieving market share (e.g. fruit and vegetable growers)

78
Q

Product

A

A good or service that can be bought or sold

79
Q

Finished product

A

One that is ready for customers to buy and use

80
Q

Location

A

will have a direct impact on the sales and profits of some businesses

81
Q

Human resources

A

the employees of the business; generally its most important asset

82
Q

Information resources

A

the knowledge and data required by the business, such as market research, sales reports, economic forecasts, technical material and legal advice

83
Q

Physical resources

A

the equipment, machinery, buildings and raw materials used by the business

84
Q

Financial resources

A

the funds the business uses to meet its obligations to various creditors

85
Q

Business culture

A

the values, ideas, expectations and beliefs shared by members of the organisation

86
Q

Stakeholder

A

any group or individual who has an interest in, or is affected by, the activities of a business

87
Q

Ecologically sustainable

A

when economic growth meets the needs of the present population without endangering the ability of future generations to meet their needs

88
Q

Support services

A

the activities needed to assist the core operations or prime function of a business

89
Q

Sustainable competitive advantage

A

refers to the ability of a business to develop strategies that will ensure it has an ‘edge’ over its competitors for a long period of time

90
Q

Business life cycle

A

refers to the stages of growth and development a business can experience

91
Q

Cash flow

A

the money coming into the business in the form of cash receipts, and the money leaving the business as cash payments

92
Q

Merger

A

when the owners of two separate businesses agree to combine their resources and form a new organisation

93
Q

Acquisition

A

when one business takes control of another business by purchasing a controlling interest in it

94
Q

Horizontal integration

A

when a business acquires or merges with another business that makes and sells similar products

95
Q

Vertical integration

A

when a business expands at different but related levels in the production and marketing of a
product

96
Q

Diversification

A

(or conglomerate integration) when a business acquires or merges with a business in a completely unrelated industry

97
Q

Voluntary cessation

A

when the owner ceases to operate the business of their own accord

98
Q

Involuntary cessation

A

when the owner is forced to cease trading by the creditors of the business

99
Q

Creditor

A

those people or businesses who are owed money

100
Q

Bankruptcy

A

a declaration that a business or person is unable to pay his or her debts

101
Q

Insolvent

A

when a company is not able to pay its debts as and when they fall due

102
Q

Voluntary administration

A

when an independent administrator is appointed to operate the business in the hope of trading out of present financial problems

103
Q

Liquidation

A

when an independent and suitably qualified person – the liquidator – is appointed to take control of the business with the intention of selling all the company’s assets in an orderly and fair way in order to pay the creditors

104
Q

Receivership

A

when a business has a receiver take charge of the affairs of the business. Unlike liquidation, the business may not necessarily be wound up

105
Q

Realisation

A

the process of converting the assets of a business into cash

BS (6 decks)

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