Unit 1 & 2 Flashcards
End of Year Exam
1.2
entrepreneurship
Entrepreneurship
the act of starting and operating a new business in response to opportunities, assuming all the risk in the hope of making a profit
1.2
business
Entrepreneurship
any activity conducted by an individual or individuals
to produce and sell goods and services that satisfy the needs of society, as well as making profit
1.2
profit
Entrepreneurship
what is left after business expenses have been deducted from money earned from revenue
1.3
financial independence
Personal Motivation
the capacity to support a lifestyle without having to be employed or be dependent on others
1.3
personal independence
Personal Motivation
the capacity to be in control of decisions that affect one’s everyday actions or activities
1.3
market need
Personal Motivation
the goods or services that customers require that are not readily available
1.3
social need
Personal Motivation
the production and/or selling of goods and services for the purpose of making the world (or the community) a better place
1.4
manager
Business Managers & Entrepreneur
a person who has responsibility for overseeing the operations of the business to ensure that it successfully achieves its goals
1.4
entrepreneur
Business Manager & Entrepreneur
a person who is willing to seize opportunities to start and operate a business, and is prepared to take risks in the hope of making a profit
1.5
business opportunity
Business Opportunity
a set of circumstances that presents itself as an avenue to success
1.5
innovation
Business Opportunity
either creating a new good, service or process, or significantly improving an existing one
1.5
research and development
(R&D)
Business Opportunity
a set of activities undertaken to improve existing products, create new products and improve production processes
1.6
goal
Goal Setting & Decision-Making
what a business expects to achieve over a set period of time
1.6
vision statement
Goal Setting & Decision-Making
describes where the business wants to be in the future (e.g. five years from now)
1.6
mission statement
Goal Setting & Decision-Making
describes what the business does and how it will achieve its vision
1.6
industry
Goal Setting & Decision-Making
the classification of groups of businesses related to the particular good or service they
produce
1.6
return on investment
Goal Setting & Decision-Making
a positive or negative percentage that relates the money gained or lost on an investment to the cost of that investment
1.6
productivity
Goal Setting & Decision-Making
a measure of business efficiency comparing
output produced with the quantity of inputs. Productivity = outputs/inputs
1.6
efficiency
Goal Setting & Decision-Making
a measure of how well we do things
1.6
effectiveness
Goal Setting & Decision-Making
a measure of whether the business is doing
the right things — those that are most important to the success of the business
1.6
decision-making
Goal Setting & Decision-Making
the ability to identify the options available and then choose a specific course of action from the alternatives
1.9
market research
Market Research & Initial Feasibility
a process of systematically collecting, recording and analysing information concerning a specific market
1.9
market conditions
Market Research & Initial Feasibility
the features of a market into which a new good or service is to be introduced, including factors such as the number of potential customers, level of competition and potential for growth business concept development
1.9
feasibility study
Market Research & Initial Feasibility
an assessment of the practicality and potential for success of a proposed business idea
1.11
economy
Contribution of Business to Nation
a system set up to determine what to produce, how
to produce and to whom production will be distributed
1.11
economic growth
Contribution of Business to Nation
an increase in the real value of goods and services over a set period of time
1.11
exports
Contribution of Business to Nation
goods or services sold by one country to individuals, businesses or governments in another country with the aim of extending sales and market penetration
1.11
balance of payments
Contribution of Business to Nation
a record of a country’s trade and financial transactions with the rest of the world
1.11
corporate social responsibility
Contribution of Business to Nation
managing a business in such a way that the broader social welfare of the community, including its employees, customers, suppliers and the environment, is taken into consideration when making business decisions
2.2
business environment
Internal & External Environment
the surrounding conditions in which the business operates. It can be divided into two broad categories:
internal and external.
2.2
internal environment
Internal & External Environment
factors over which the business has some degree of control; (micro environment)
2.2
external environment
Internal & External Environment
factors over which the business has little control, includes: operating and macro
2.2
operating environment
Internal & External Environment
the specific outside stakeholders with whom the business interacts in conducting its business
2.2
macro environment
Internal & External Environment
the broad conditions and trends in the economy and society within which a business operates
2.3
business entity
Legal Business Structure
an organisation that exists separately to its owner in order to produce and sell goods and services
2.3
incorporated
Legal Business Structure
a business that has a separate legal existence apart from its owner(s)
2.3
sole trader
Legal Business Structure
a business owned and operated by one person
2.3
unlimited liability
Legal Business Structure
when the business owner is personally responsible for all the debts of their business
2.3
partnership
Legal Business Structure
an unincorporated business structure with a minimum of 2 and a maximum of 20 owners
2.3
silent or sleeping partner
Legal Business Structure
one who contributes financially to a business but takes no part in the running of the business
2.3
incorporation
Legal Business Structure
the process that a business goes through to become a registered company and a separate legal entity
2.3
shareholders
Legal Business Structure
the owners of a company who are entitled to a share of its profits
2.3
limited liability
Legal Business Structure
when the shareholders of a company cannot be held personally responsible for the debts of the business
2.3
private limited company
Legal Business Structure
an incorporated business with a minimum of 1 shareholder and a maximum of 50 non-employee shareholders
2.3
public listed company
Legal Business Structure
an incorporated business with a minimum of one shareholder (and no maximum), and whose shares are openly traded on the Australian Securities Exchange
2.3
prospectus
Legal Business Structure
a legal document that provides details about investment in the company
2.3
social enterprise
Legal Business Structure
a type of business that produces goods and
services for the market; has primary
objective of fulfilling a social need,
yet it has profit as an objective
2.3
Government business enterprise (GBE)
Legal Business Structure
a type of business which is controlled by the
government; provide a range of essential services, but run in a similar way to companies with shareholders and a board of directors
2.5
business model
Business Model
the way in which the business will run its operations to generate a profit
2.5
bricks and mortar
Business Model
the traditional business model that is based on a store with a physical presence, such as those located on shopping strips and in shopping centres
2.5
retail
Business Model
a business that operates by selling goods and services to the customer at a price higher than the
cost to produce or purchase the goods in bulk
2.5
manufacturing
Business Model
a business that produces physical goods, often in a factory
2.5
wholesale
Business Model
a business that sells large volumes of goods to retailers
2.5
bricks and clicks
Business Model
the business model that offers customers the choice of online shopping as well as shopping at the physical store
2.5
franchise
Business Model
when a business sells to others the rights to distribute its goods and use the business name
2.5
franchise agreement
Business Model
an agreement whereby the franchisor grants the franchisee the rights to use its business name and
distribute its goods or services
2.5
franchisor
Business Model
the owner of the original business concept that licenses another business to use its name and distribute its goods or services in exchange for royalty payments and fees
2.5
franchisee
Business Model
a business that is licensed to operate under the name of an existing business and distribute its goods or services
2.5
imports
Business Model
goods and services that are produced overseas and sold to Australian consumers
2.5
exports
Business Model
goods and services that are produced in Australia to be sold overseas
2.6
goodwill
Existing / Establishing Business
the monetary value attached to the reputation of a business
2.7
resources
Business Resource Needs
the people and objects that are needed for the business to function properly
2.7
natural resources
Business Resource Needs
items the business uses that come from the natural environment, (e.g. include land, water and raw
materials)
2.7
labour resources
Business Resource Needs
the people that provide their skills, effort and knowledge to the business
2.7
subcontractor
Business Resource Needs
a person that is not directly employed by the business but has been contracted to perform certain tasks
2.7
capital resources
Business Resource Needs
the tools and machinery that are used to produce goods or perform services
2.8
zoning
Business Locations
a means by which local councils allocate land for different uses, such as residential, commercial, recreational and industrial
2.8
search engine optimisation
(SEO)
Business Locations
the strategies used to increase the number of visitors to a website by making it more visible on search engines
2.8
complementary businesses
Business Location
businesses that sell products which are aimed at the same customers
2.9
equity
Sources of Finance
the funds contributed by the owner(s) of a business to start and build the business
2.9
bootstrapping
Sources of Finance
starting a business using personal finance or the revenue from the business
2.9
angel investors
Source of Finance
individuals or businesses that invest in a new business
2.9
crowdfunding
Source of Finance
a method of raising finance through appeals for donations via social media and the internet
2.9
debt
Sources of Finance
the funds provided by banks, other financial institutions, government and suppliers, which must be paid back over time with interest
2.9
working capital
Source of Finance
the funds available for the short-term financial commitments of a business
2.9
bank overdraft
Source of Finance
when a bank allows a business or individual to overdraw their account up to an agreed limit for a specified time to help overcome a temporary cash shortfall
2.9
mortgage
Source of Finance
a loan on a property, secured by the property of the
borrower (the business) leasing a way of financing the purchase of assets without a large initial capital outlay
2.9
lessee
Source of Finance
the person or business to whom a lease is granted
2.9
lessor
Source of Finance
the owner of an asset that is leased under an agreement to the lessee
2.9
terms of finance
Source of Finance
the amount of the repayments and frequency at which they must be made
2.10
accountant
Business Support Service
a professional who provides advice on all financial management issues and taxation obligations
2.10
solicitor
Business Support Service
a professional who provides advice on legal matters
such as business formation, registration, contracts and legislationaccountanta professional who provides advice on all financial management issues and taxation obligations
2.12
business plan
Planning Tools & Business Plan
a written statement of the goals and objectives for the business, and the steps to be taken to achieve them
2.12
planning
Planning Tools & Business Plan
a process or series of actions to achieve an objective
2.14
stakeholders
CSR & Business Planning
any group or individual who has an interest in, or is affected by, the activities of a business
2.14
boycotting
CSR & Business Planning
when a customer refuses to purchase goods or services from a business as a form of protest against the undesirable activities of the business
2.14
staff morale
CSR & Business Planning
the general level of satisfaction and wellbeing of employees
2.14
employee retention
CSR & Business Planning
the ability of a business to keep employees
2.14
environmental audit
CSR & Business Planning
a review of the extent to which a business’s activities have an impact on the environment
2.14
environmental management system
CSR & Business Planning
a tool for managing a business’s environmental impact in a systematic and methodical manner
3.3
business activity statement
(BAS)
Legislation & Government Regulation
records of a business’s claims for input tax credits and accounts for GST payable
3.3
goods and services tax (GST)
Legislation & Government Regulation
a broad-based tax of 10 per cent on the supply of most goods and services consumed in Australia
3.6
economic conditions
Economic Conditions
the set of influences that relate to economic activity, including interest rates, wages, unemployment, exchange rates and inflation
3.6
interest rate
Economic Conditions
the price charged or paid for the use of money that has been deposited or borrowed
3.6
employment
Economic Conditions
when a person works one hour or more in a specified week
3.6
unemployment
Economic Conditions
when a person who, during a specified period, is not employed for one hour or more, but is actively seeking work and is currently available for work
3.6
tax rate
Economic Conditions
the percentage of income or the value of a good, service or asset paid as tax
3.7
technological considerations
Technological Considerations
methods, systems and devices that are the result of scientific knowledge being used for practical purposes
3.8
globalisation
Global Consideration
the effect of hi-tech communications, lower transport
costs and unrestricted trade and financial flows turning the whole world into a single market, producing a more integrated global economic system
3.8
offshoring
Global Consideration
the practice of moving some of a business’s processes or services to the same or another business located overseas
3.8
exchange rate
Global Consideration
the price of one country’s currency expressed in terms of another country’s currency
3.9
corporate social responsibility
CSR Considerations
managing a business in such a way that the broader social welfare of the community, including its employees, customers, suppliers and the environment, is taken into consideration when making business decisions
3.9
triple bottom line
CSR Considerations
the economic, environmental and social performance of a business
3.12
customers
Customers & Competitors
the people who purchase goods and services from a business, expecting high quality at competitive prices
3.12
competitors
Customers & Competitors
other businesses or individuals who offer rival, or competing, goods or services to the ones offered by the business
3.12
competitive advantage
Customers & Competitors
the ability of a business to develop strategies that ensure it has an ‘edge’ over competitors
3.13
suppliers
Suppliers & Special Interest Groups
those businesses or individuals that supply the materials and other resources that the business needs to conduct its operations
3.13
supply chain
Suppliers & Special Interest Groups
the range of suppliers from which the business purchases materials and resources
3.13
special interest groups
Suppliers & Special Interest Groups
the groups of people who attempt to directly influence or persuade a business to adopt particular policies or procedures
3.13
environmental lobby groups
Suppliers & Special Interest Groups
special interest groups that promote environmental issues to the public, government and businesses
3.13
business associations
Suppliers & Special Interest Groups
organisations that support businesses through the provision of training and education programs, advice and information
3.13
unions
Suppliers & Special Interest Groups
organisations formed by employees in an industry, trade or occupation to represent them in efforts to improve wages and working conditions
4.2
domain name
Registration, Taxation and Government Regulations
the address of a website on the internet
4.2
Australian Taxation Office (ATO)
Registration, Taxation and Government Regulations
the government body in charge of administering and collecting tax for the federal government
4.2
progressive tax rate
Registration, Taxation and Government Regulations
a tax rate that increases as the individual earns a higher income
4.3
WorkSafe Victoria
Trade Practices Legislation
a government agency that aims to reduce workplace injuries and support injured workers
4.3
code of practice
Trade Practices Legislation
a written set of guidelines that are intended to help businesses achieve the standards set by the government (e.g. in dealing fairly with customers)
4.3
Australian Competition and
Consumer Commission (ACCC)
Trade Practices Legislation
a government body that has the role of enforcing the Competition and Consumer Act 2010 (Cwlth) and a range of additional legislation promoting competition and fair trading, and regulating national infrastructure
4.3
Consumer Affairs Victoria
Trade Practices Legislation
Victoria’s government body established to regulate the marketplace, helping ensure fairness for businesses and consumers
4.3
merger
Trade Practices Legislation
the joining together of two or more businesses to form one business
4.3
acquisition
Trade Practices Legislation
when one business takes over another business
4.5
freelancers
External Professional
independent workers who charge businesses or individuals for work on a per job basis
4.6
separate entity
Bank Accounts
accounting principle recognising that the owner’s finances are separate to those of the business and therefore business transactions should be recorded separately
4.7
financial control systems
Financial Control Systems
the processes, methods and tools that allow business to accurately monitor and manage its financial performance
4.7
budgeting
Financial Control Systems
estimating the business’s financial performance for a given period in the future
4.7
cash flow
Financial Control Systems
the money being transferred into and going out of the business
4.7
credit terms
Financial Control Systems
the terms and conditions of sale between a customer and a business, including the amount of time provided for making final payment
4.7
accounts receivable
Financial Control Systems
the outstanding payments a business is owed by its customer
4.7
inventory control
Financial Control Systems
ensures that costs are minimised and that the business has access to the right amounts of materials when required
4.7
auditing
Financial Control Systems
the process of testing and evaluating a business’s accounting processes and internal control
4.8
source documents
Record-Keeping Strategies
written documents that provide evidence of a financial transaction
4.8
cash book
Record-Keeping Strategies
provides a summary of all the business’s cash receipts and cash payments; it is compiled from the receipt and payment source documents.
4.8
income statement
Record-Keeping Strategies
used primarily to help a business calculate how much profit it has made over a period of time
4.8
balance sheet
Record-Keeping Strategies
shows a business’s assets and liabilities (the financial position of a business) at a point in time
4.8
bookkeeping
Record-Keeping Strategies
the keeping and processing of a business’s financial records
4.10
procurement
Appropriate Suppliers
the process of researching and selecting suppliers, establishing payment terms, negotiating contracts and the purchasing of resources that are vital for maintaining the production of the business’s good or service
4.11
policy
Policies & Procedures
a written set of broad guidelines to be followed by all employees
4.11
procedure
Policies & Procedures
a series of actions that enable a policy to be put into practice
4.13
social media advertising
Technological & Global Issues
a form of online advertising that uses social media channels to deliver targeted commercial messages to potential customers
4.13
three-dimensional (3D) printing
Technological & Global Issues
the production of a physical object from a digital design or model
4.13
robotics
Technological & Global Issues
the engineering behind the design, construction and application of robots
4.13
customer database
Technological & Global Issues
a bank of information on existing and potential customers, including their contact information, personal details, previous interactions, buying habits and preferences
