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Business studies year 11 > Topic 3 : influences in establishing a small to medium enterprise > Flashcards

Topic 3 : influences in establishing a small to medium enterprise Flashcards

Business prelim

1
Q

list personal qualities that affect how you establish an SME

A 
qualifications
skills
motivation
entrepreneurship
cultural background
Gender
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2
Q

what do qualifications have anything to do with bussiness

A

you do not need to go to school to become an entrepreneur. Entrepreneurs should go to business courses to learn the importance of planning and generating business ideas

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3
Q

what does skill have anything to do with business

A

owners must have technical skill to transform a business opportunity into a real business

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4
Q

what does motivation have to do with bussiness

A

having a reason for running there business allows the owner to have a vision for their businesses future

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5
Q

what does entrepreneurship have to do with bussiness

A

it means you are able to establish and run a successful business and will take calculated risks to turn an idea into a successful business operation

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6
Q

what does cultural background have to with bussiness

A

heritage can enhance your business

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7
Q

what does gender have to do with bussiness

A

expectation and standards set both genders are equal

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8
Q

What does information allow entrepreneurs to do

A

make better plans and gain advantage over competitors

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9
Q

list sources of information that businesses can use

A

Australian bureau of statistics
internet sites operated by industry groups
trade shows/conferences

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10
Q

how do entrepreneurs find new business opportunities

A

they research the market for signs of gaps that they can fill

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11
Q

list some examples of opportunities

A

things deliberately looked over by big companies
new product and services
political changes

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12
Q

list the steps of the business idea generation

A
  1. business idea/s formulated
  2. first assessment of idea/s
  3. Research undertaken
  4. idea evaluated
  5. identify problems
  6. identify solutions
  7. understand risk involved
  8. make decision on idea
  9. start bussiness
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13
Q

list types the levels of competition(3)

A

monopoly
duopoly
oligopoly

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14
Q

what is a monoploy

A

a market dominated by 1 business (95%+)

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15
Q

what is a duopoly

A

a market dominated by 2 businesses

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16
Q

what is a oligopoly

A

a market controlled by a few very large businesss

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17
Q

list the establishment options (3)

A

new business
existing business
franchise

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18
Q

list 3 advantages of creating a new business

A

full creative control
gets to make all decisions
don’t need to pay goodwill

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19
Q

list 3 disadvantages of creating new business

A

high risk of failure
long time until you break even
needs to build customer base

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20
Q

list 3 advantages for buying a existing business

A

established customer base
‘turn key’ business- immediate start
established suppliers and staff

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21
Q

list 3 disadvantages for buying a existing business

A

existing problems (not immediately noticed)
pay goodwill-expensive
post success may be due to previous owner

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22
Q

list 3 advantages for buying a franchise

A

established customer base
take advantage of company promotions
suppliers and materials supplied

23
Q

list 3 disadvantages of buying a franchise

A

no creative control
pay for goodwill-expensive
franchiser has contract production and doesn’t need to renew the contract, if you aren’t doing well or are going against the ideals of the company

24
Q

what must you research when you are creating your idea (4)

A

your target market
demand for your product
similar products from competitors
cost of providing the product

25
Q

how should you price your product

A

through using pricing methods and strategies

26
Q

list some things do you need to consider when looking for a location(3)

A

buy or rent
proximity to competitors
foot traffic

27
Q

what is finance

A

is the money that a person will need to fund the operations of the business

28
Q

list some sources of finance through equity(4)

A

owners capital
retained profits
invite partners
sell shares

29
Q

list some examples of short term debt(3)

A

credit card
overdraft
factoring

30
Q

list some examples of long term debt(3)

A

mortgage
leasing
debenture

31
Q

what is overdraft

A

permission to withdraw more than what is in you account

32
Q

what is factoring

A

selling accounts receivable to finance companies for a reduced price

33
Q

what is a debenture

A

an amount borrowed from a company that is paid back + interest over 1-10 years.

34
Q

what is secured debt

A

the borrower puts an asset as security for a the loan. meaning the lender may reposes it if the loan is not repayed.

35
Q

what legal influences, influence your besiness

A

Business name
zoning
health regulations
consumer law

36
Q

what laws are there about business names (2)

A

you must register business name with the ASIC,

Must have a Australian Business Number (ABN) which must appear on all invoices and communication

37
Q

what laws are there about zoning(2)

A

local councils can restrict where some businesses are located
council plans and allocates residential, commercial, industrial zones

38
Q

What laws are there about health regulations(2)

A

business must have all required licenses

food and hospitality businesses must meet all health and safety requirements

39
Q

what laws are there about consumer law

A

Australian consumer law: protects consumers from misleading business practice
businesses must honour warranties, price of goods, appropriately and no false claims

40
Q

what must businesses do when planning for Human resources

A

the owner must undertake a job analysis

41
Q

what is a job analysis

A

it sets out the key duties and responsibilities of each position

42
Q

what costs are needed to supply employees (2)

A

wage costs

non-wage costs

43
Q

what are wage costs

A

refer to the wage or salary that is paid to an employee

44
Q

what is a non wage cost

A

additional cost that aren’t wages eg uniform,insurance,superanuation

45
Q

List types of taxes that will need to be paid in your bussiness

A

federal tax
state tax
local fees and charges

46
Q

what is federal tax

A

a tax on profits

47
Q

what type of federal tax do unincorporated businesses pay

A

unincorporated businesses pay tax as individuals(income tax),

48
Q

what type of federal tax do incorporated businesses pay

A

incorporated businesses pay company tax(businesses with under $10 million in revenue is 27.5%)

49
Q

what type of tax do both incorporated and unincorporated businesses pay

A

PAYG (pay as you go )

GST (Good and services tax)

50
Q

how much is PAYG

A

a tax based on salaries+wages of employees that are given To the ATO (Australian taxation office)

51
Q

how much is GST

A

10% of the cost of inputs/production

52
Q

what is state tax

A

state tax is the income tax

53
Q

list types of state tax(4)

A

payroll
stamp duty
gaming machine tax
car registration

54
Q

list some types of local fees and charges (4)

A

land tax
development applications
parking permits
venue hire

Business studies year 11 (15 decks)

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