Unit 1 AOS 1 Revision Flashcards
Define Innovation
Innovation refers to the process of creating a new or significantly improved good, service or process (way of doing something)
Define R&D (Research & Development)
Research and development is when a business researches a product or service and develops to either create something new or improve on something else
Define Entrepreneurship
A person who sets up and operates a business or businesses, taking on financial risk in the hope of profit.
Define Market conditions
Market conditions refer to the characteristics of the market where a new product or service will be launched. These include factors such as the size of the potential customer base, the level of competition, and the opportunities for growth.
Define Business
A business is any activity that is conducted by an individual or individuals to produce and sell goods and services that will satisfy the needs of society, with the main objective of making a profit.
Define Market Research
Is the process of collecting and recording data using primary and secondary research on a specific marketing problem, and then analysing the collected data.
What are the 4 main motivations for going into Business?
To make a profit
To fulfill a market need
To fulfill a social need
Independence
Identify the three steps taken in the Market Research process:
Determining information needs
Collecting data from primary and secondary sources
Analysing and interpreting data
Define Primary and Secondary Data with examples and identify the differences between the two sources of information:
Primary data: Information collected from original sources like surveys, obeservations and experimentation.
Secondary data: Public or existing information someone else has collected including sales reports, company websites, or research done by other bodies.
Why is goal setting important to businesses? What does it provide for a business?
Goals are important for a business to grow and excel. Goals provide clarity, purpose and a sense of direction for employees within a business.
Identify the characteristics of a BUSINESS MANAGER and an ENTREPRENEUR:
Characteristics of successful business managers: the ability to start and see through long-term projects, leadership qualities, organisational skills and the ability to take managed risks.
Characteristics of successful business entrepreneurs: taking risks, sharing a vision and demonstrating initiative, innovation and enterprise.
Identify and explain the four (4) ways that businesses contribute to the Australian economy:
Employment: Businesses provide employment that keeps the economy healthy. employees buy goods and services supporting businesses.
Economic Growth: Businesses drive economic growth by producing goods and services that fulfill consumer needs and wants.
Taxation: Businesses generate tax revenue for the government through various channels such as corporate income tax, goods and services tax (GST), and employees payroll tax.
Research and develoment: Businesses undertake research and development to expand their knowledge of products and processes, this increases the overall economic expansion.
What are the FOUR elements of the BUSINESS CONCEPT and why are they important to identify before starting a business:
Who: Includes the target market.
What: Describes the core activities of the business
Why: Specific features & value of good or services
How: How will you distribute the product or service
These elements are important to identify
These elements are crucial to identify if starting a business. This is because it will provide clarity, purpose, and a sense of direction to the person starting the business.
