Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Business studies
Nature of business
| Question | Answer |
|---|---|
| What is the aim of a business | A business is an organisation that attempts to satisfy the needs and wants of the community by providing goods and/or services by combining inputs with equipment and human skills, business add value |
| Key roles of a business | Profit - money Quality of life Wealth Entrepreneurship & risk - goals Innovation Choice - variety Income Employment |
| Innovation | This is the process of improving the features of a project Idea Creativity Process Development Vision Growth Inspiration |
| What is an entrepreneur | a person who sets up a business or businesses, taking on financial risks in the hope of profit.They must be able to think creativley, manage a team and change with the market |
| Legal structures definition | When choosing what type of legal structure is best for your business, you need to consider the circumstances influencing the business. |
| Factors to choose correct legal structure | size, ownership, finance, Privatisation |
| Types of Legal Structures | sole trading, partnership, Company - can be public or private |
| Sole trading definition | a simple business structure in which one individual runs and owns the entire business. they are entitled to keep all profits after taxes have been deducted but is also liable for all losses the business incurs. - unlimited liabillities |
| Partnership definition | a legal arrangement that allows two or more people to share responsibility for a business. Those partners share the ownership and profits, but they also share the work, responsibility, and potential losses. - unlimited liabillities |
| Company | a type of business structure where your business forms a separate legal entity. This means the company has the same rights as a natural person and can incur debt, sue and be sued - limited liabilities |
| Private company definiton | may issue stock and have shareholders, but their shares do not trade on public exchanges and are not issued through an IPO. - limited liabilities |
| Public company definiton | a company that has sold a portion of itself to the public via an (IPO), meaning shareholders have a claim to part of the company's assets and profits. 1 Public disclosure of business and financial activities and performance is required - limited lias |
| Primary Business definition | Any business that grows goods or extracts materials from the land eg farming companies |
| Secondary Business definition | collects raw materials from industries in the primary sector and processes them into consumable products eg cadbury |
| Tertiary Business definition | a technical name for the services sector of the economy, which encompasses a wide range of businesses, including financial institutions, schools, hotels, and restaurants. eg. retail, realestate, legal council - government businesses |
| Quaternary Business definition | the industry based on human knowledge which involves technology, information, financial planning, research, and development. eg media, information and communication technology, consultancy, and research and development |
| Quinimary Business definition | services once performed in the home, or domestic services. Chefs, daycare providers, and cleaning services are types of quinary businesses. |
| how is Innovation important | increase in productivity of individuals, processes, and business models, among others. Simply put, it presents new ideas to business leaders to increase efficiency with minimum resources. Furthermore, reducing business and other risks |
| What do government businesses do | is a entity which is established by a government, by order or an act of legislation, to earn profit for government, control private sector , provide products and services to citizens, implement government policies, and/or to deliver products & services |
| Benifits of government businesses | controlled businesses can receive lower costs of investment and export financing than private businesses. This can happen in both the interest rates charged as well as through receiving direct government funds that do not have to be repaid. |
| Disadvantages of government businesses | These can include greater accountability obligations, universal service obligations, and requirements to comply with government wages and pension policies and even objectives around maximising or protecting employment in the particular sector. |
| Aim of government business | The primary purpose of the companies is to partake in commercial activities within the private sector. As a result, GBEs act as public entities that engage in private sector activities to promote the public's continuous provision of essential services. |
| What are stakeholders | has a vested interest in a company and can either affect or be affected by a business' operations and performance. they are typically investors, employees, customers, suppliers, communities, governments, or trade associations. |
| What is cessation | a temporary or final ceasing as of action stop. mutually agreed to a cessation |
| Types of cessation in business | involuntary cessation, voluntary cessation |
| Voluntary cessation | an employee resignation, retirement, domestic or pressing necessity or abandonment of employment |
| Involuntary cessation | when a business owner has to close the business due to circumstances beyond the business owner's control. |
| Sole trader cessation | Owner dies business dies with them Voluntary cessation, pays all debts and ceases Owner declared bankrupt if cannot pay |
| Partnership cessation | Will usually have an agreement that outlines cessation process; otherwise must follow the partnership Act 1982 Similar to sole traders, can be dissolved if a partner dies, a partner involved in fraud or bankruptcy |
| Company cessation | Written word stating if the company can pay it’s debts Once written, shareholders must approve the statement and then the process can happen |
| Company cessation part 2 | if voluntary, they'll can choose the liquidator/ administrator and will begin to close If the company is unable to cover it’s debts they just end up with nothing |
| Local business definition | a company or store that operates in a specific neighborhood, town, or city, serving the needs of the people who live or work nearby. they include farmers who sell their farm products, local coffee shops, small clothing stores, and others. |
| National business defenition | operates within the borders of a particular country. Like a local business, understands the culture of the country and develops products and services to satisfy its market. For example, Doughnut Time is a doughnut shop that operates throughout Australia. |
| Global business definition | a company that operates facilities (such as factories and distribution centres) in many countries around the world. This is different from an international business, which sells products worldwide but has facilities only in its home country. |
| Bankruptcy definition | a legal process where you're declared unable to pay your debts. |
| Invention definition | the action of inventing something, typically a process or device. |
| Vertical integration | a business strategy in which a company takes ownership of two or more key stages of its supply chain. |
| Horizontal integration | when a company acquires or merges with another company in the same industry that is operating at the same level in the value chain |
| Merger | a combination of two things, especially companies, into one. |
| Acquisition | the act of acquiring or gaining possession |
| What is an SME | These are enterprises that have less than a specific level of investment and turnover. SMEs include both manufacturing and service businesses. |
| What is a small business | of corporations, partnerships, or sole proprietorships which have 5- 19 employees and/or less annual revenue than a regular-sized business or corporation. |
| What are external influences | When the surroundings of a business change, it is necessary for managers to adapt and make adjustments to business operations. aspects include economic. social. technological. environmental and competitive. |
| What are Internal Influences | Ifluences that impact the business that are internal in the business. these factors include product, resource, location, management, and business culture |
| What are product influences | This is an internal influence. These influences affect a large majority of the internal operations of a business.If the goods require certain equipment, these must be catered to so the business can go on with its production. - II |
| What are resource influences | These are the employees of the business and are generally its most important asset. forecasts, technical material and legal advice. Physical resources include equipment, machinery, buildings and raw materials. various creditors. -II |
| Success of failure of small - medium enterprises | Period for commencement Cumulative total of approximate failure rate After 1 year 25% 2 years 42% 3 years 54% 4 years 64% 5 years 71% Over 10 years 29% |
| How to help acheive sustainable growth | Develop a strong brand identity for your business. Leverage technology and data-driven decision-making. Focus on customer retention and long-term satisfaction. Create replicable sales and retainers. Form an exceptional team. |
| What are loctaion influences of a business | Market and Demographics. It's important to know who your ideal customers are when choosing a business location. Traffic. Accessibility. Competition. Costs. Growth Potential. -II |
| what are management influences of a business | Managers can often determine the success or failure of a business through decisions to make a certain product, locate a business or the type of resources they will use in the business. -II |
| What are business culture influences | leadership style, the organisation's structure, its policies and procedures, the external environment, employee behaviour, and the organisation's history and traditions. - II |
| effects of poistive business culture | having a positive influence that results in employees being more motivated, mindful, and satisfied with their workplace which makes them more likely to be present. -II |
| What are the external influences on a business | competition, economic climate, political and legal environment, technological advances, or major global events. - |
| How does competition affect a business | encourages innovation and motivates companies to create products people value at prices they can afford. If you want to improve an organization's bottom line, you might benefit from reviewing the best practices for managing the competition it faces. -EI |
| What is competition | the contest between organizations that provide similar products or services or that target the same audience of consumers. Businesses compete to convert and retain customers, increase revenue and gain more market share. -EI |
| What is economic climate | describes the overall economic conditions in a given country or region. This includes various factors such as inflation, unemployment rate, consumer spending, or GDP growth rate. - EI |
| Legal environment influences | the regulations and laws businesses have to abide by or face the consequence of various penalties. The Legal structure which you choose to run your business under causes many legalities. -EI |
| Technological advanes defintion | This permits new products to be produced very quickly once they have been designed. It also permits manufacturers to respond rapidly and flexibly to the specifica- tions of customers and to changing market conditions. - EI |
| how do major global events affect a business | Large global events such as covid that change the projectory of human buying habbits - EI |
| what are shareholders | a person or institution that has invested money in a corporation in exchange for a “share” of the ownership. That ownership is represented by common or preferred shares issued by the company and held (i.e., owned) by the shareholder. |
| What is the difference between share and stakeholders | A stakeholder is anyone who is impacted by a company or organization's decisions, regardless of whether they have ownership in that company. Shareholders are those who have partial ownership of a company because they have bought stock in it. |
| How to remember difference between share and stakeholders | All shareholders are stakeholders, but not all stakeholders are shareholders. |
| small business statistics | 95% of all businesses classified as small 90% of small businesses fail due to absence of a product-market fit, poor marketing strategy formulation and implementation, and cash flow problems. |
| What is the importance of small businesses | Small businesses play a significant role in the Australian economy, accounting for almost half of employment in the private non-financial sector and over a third of production. |
| Advantages of small bussinesses | Local jobs Uniqueness of small businesses Every business starts small Local community building Service Small businesses create jobs Community Entrepreneurship Expertise flexibility |
| Why do small businesses fail | a lack of capital or funding, retaining an inadequate management team, a faulty infrastructure or business model, and unsuccessful marketing initiatives. |
| when does liquidation come into play in voluntary cessation | The liquidation begins from the time the resolution to wind up is passed. If the majority of directors do not make a declaration of solvency, or the company is insolvent, the shareholders can still vote for a voluntary liquidation. |
| when does liquidation come into play in involuntary cessation | a court order made after an application by a creditor, director, or a majority of shareholders. |
| What is perfect competition | an imaginary market condition where all consumers have access to the same products and information. In this type of economy, all firms must offer the lowest price possible or risk being undercut by their competitors. |
| what is an oligopoly | markets dominated by a small number of suppliers. |
| business life cycle | The stages of the business life cycle include, launch, growth, shake out, maturity and decline |
| lauch stage of business life cycle | This is when a business initially puts their goods or services on the market. profits start out slow. It is important to have a very good marketing stratergy and team involving the comparitve advantage to get your business known by the market demographic |
| Growth stage of business life cycle | This is when the business has taken off, begining to see cash flow and profit, risk decreases but risk of debt increases as more money is put into the business, at this stage it is important to create customer loyalty |
| Shake out of stage of business life cycle | The boom in the growth stage begins to slow, it is important to focus on cost reduction and innovation to stay ahead of the market as wel as continuting customer loyalty |
| Maturity Stage of business life cycle | this is when the business growth levels out as the product has saturated the market, this is when it is very beneficial to loyal customers, profit margins begin to thin |
| Decline Business life cycle | Business can no longer compete with the market and begining to lose money - often the time people close their business |
Created by:
user-1830647
Popular Standardized Tests sets