unit 1 aos 1 business glossary Flashcards
personal independence
is the ability to fund a desired lifestyle without relying on income from another individual.
entrepreneurship
the activity of setting up a business or businesses , taking on financial risks in order to make a profit
financial independence
is the ability to fund a desired lifestyle without relying on income from another individual.
profit
revenue minus expenses
to fulfil a market need
is when a business fills a gap in the market by addressing customer needs that are currently unmet or underrepresented by competitors in the same industry.
to fulfil a social need
is improving society and the environment through business activities.
business concept
is a brief outline of the business’s idea, its main selling activities, and the features that will provide it with a competitive advantage.
market research
a process of systematically collecting, recording and analysing information concerning a specific market
initial feasibility study
an assessment
of the practicality and potential for
success of a proposed business idea.
qualitative data
subjective e.g opinions
quantitative data
objective e.g numbers, facts
Trade mark
This is a right granted over a letter, word, phrase, number, sound, smell, shape, logo, picture or aspect of packaging that a business will use to represent its products and services.
patent
This is a right granted for any device, substance, method or process that is new, inventive and useful.
Copyright
This is free and automatic protection, of original works such as writing, music, art, films, sound recording, broadcasts and computer programs.
Domain name
A potential owner can register a domain name (the business’s unique address on the internet) so that nobody else can register it. It can be a good idea to do so even if there are no plans to build an actual website for some time.
Manager
A manager is an individual who has the responsibility of overseeing and handling employees whilst also running the day-to-day business tasks to achieve objectives.
Leadship
leadership is the skill of motivating others in orderer to achieve a business’s objectives
Delegating
delegation is the skill of assigning work tasks and authority to other employees who are further down in a business hierarchical structure
Interpersonal
interpersonal is the skill of effectively transferring information from one party to another
Decision-making
decision-making is the skill of selecting a suitable course of action from a range of plausible options
Business opportunity
A business opportunity is a favourable situation that can lead to improvements or success for a business.
planning
planning is th process of determining a business’s objectives and establishing strategies to achieve these aims
Innovation
The process of creating a new or significantly improved good, service or process
These new ideas present an opportunity to establish a business
Market opportunity
Markets are the places where buyers and sellers interact to trade goods and services
Since markets are always changing, potential business owners may identify opportunities
Business environment
The business environment is made up of surrounding factors that influence how a business operates.
Demographics
are statistical information about the characteristics of a population, such as age, ethnicity, gender, and income.
Societal attitudes
the ideas, values and beliefs held by people in a particular society.
Norms
the standards by which we collectively agree appropriate behaviour.
Changing customer needs
are the transitions in the desires of consumers.
Market share
Market share is the percent of total industry sales that a company has. The higher the market share, the more sales a company has than its competitors in their given industry. Market share is an indicator of how large a company is and the amount of influence it has in its industry.
Global markets
The global market
is the area in which businesses trade goods and services, comprised of both businesses and customers from countries all across the world.
Research and development
involves directing resources, such as money, towards discovering, creating, and introducing new products and processes.
Globalisation
Globalization of business is a movement toward operating in multiple countries, both to reach new markets and to reduce costs of production.
Domestic
Domestic business involves those economic transactions that take place inside the geographical boundaries of a country. Both the buyer and seller belong to the same country in this form of business.
Technological developments
are the invention and innovation of tools that solve problems and enhance processes.
business goals
Goals provide a business with a direction and help to measure results/outcomes over a set period of time.
business strategies
are a series of actions that
a business will implement to achieve its goals.
financial goals
are targets for improving
the overall financial performance of a business.
social goals
are targets set by a business that
aim to improve the
welfare of the community, environment, or employees of a business.
SMART goals
specific
measurable
attainable
relevant
time-bound
profit margin
is the proportion of revenue left over from the sale of a good or service after
a business has deducted its expenses
decision making
is the skill of selecting a suitable course of action from a range of plausible options.
tax offset
is a direct reduction in the amount of tax that must be paid by a business to the Australian Tax Office (ATO)
start up hub
are physical spaces that individuals
and businesses can utilise in order to have office facilities to work in, or to obtain support regarding business matters.
making a profit
involves a business generating more revenue than expenses it incurred
market research
is the process of investigating and analysing the activities and behaviours of customers and competitors in a specific industry.
initial feasibility study
is a researched evaluation of how viable a business concept is.
tax
is a compulsory payment to the government, which is used to finance the provision of public goods and services.
infrastructure
s the essential facilities and structures that are required for an economy to operate.
Economic growth
is when the total value
of goods and services produced by an economy increases over a period
of time. Economic growth can be measured by gross domestic product (GDP)
international trade
is the exchange of goods and services between different countries.
research and development
involves directing resources,
such as money, towards discovering, creating, and introducing new products and processes.
Social wellbeing
is a measure of the quality
of life individuals have, reflected by their non- material living standards
council grant
is a one-off financial payment from a local council to a business, which does not need to be repaid, that aims to support business ideas and development.
