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Commerce - Yearly (Year 9 )
N/A
58
Economics
9th Grade
09/21/2010

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Term
Entrepreneur
Definition
Is a business person who develops the idea, organises the input of the business and takes risks associated with running the business.
Term
Private Sector
Definition
The part of the economy not owned or controlled by the government.
Term
Public Sector
Definition
Is the part of the economy that is owned an controlled by the government.
Term
Needs
Definition
These items are essential for life
Term
Wants
Definition
Non-essential goods
Term
Budget
Definition
A spending plan showing an individuals or a businesses expenditures and income over a certain amount of time.
Term
Labour
Definition
The physical and mental effort provided by people in the process of producing goods and services
Term
Shareholders rights include... ?
Definition
Voting Power on major issues.
Ownership in a portion of the company.
The right to transfer ownership.
An entitlement to dividends.
Oppurtunity to inspect corporate records and books.
The right to sue for wrongful acts.
Term
Define income shares
Definition
A class of capital stock that is issued by a split investment company or a dual purpose mutual fund
Term
Define Blue Chip shares
Definition
shares in large well established companies that have historically shown ability to pay dividends in uncertain markets.
Term
Define Growth Shares
Definition
Shares in a company whose earnings are expected to grow at an above average rate relative to the market
Term
Define cyclical shares
Definition
Shares that have a beta value of less than 1.
Term
What are the two main functions of the stock market?
Definition
To facilitate a company raising funds by issuing securities (shares) to investors.
Investors are able to buy and sell shares on the stock market for a profit.
Term
What is a secondary market (stock exchange)?
Definition
Securities are first issued as a primary offering to the public. When the securities are traded from that first holder to another, the issues trade in these secondary markets.
Term
What are consumers legal rights?
Definition
That a product is safe.
That a product has accurent information on the package.
That there is a full disclosure of price.
That any guarantees will be honoured.
Term
An example of protective legislation?
Definition
Trade Practices Act (1974) or the Fair Trading Act (1987)
Term
Four protective organisations for consumers?
Definition
ASIC (Australian Securities and Invesments Commissions.)
The office of fair trading.
ACCC - The Australian Competition and Consumer Commission
(ACA) The Australian Consumers Association.
Term
What are the seven payment options?
Definition
Cash, credit, debit, lay-by, cheque, EFTPOS and book-up.
Term
What are the four "Factors of Production"?
Definition
Labour, Capital, Land, Entrepreneur.
Term
What is the Primary Industry?
Definition
The Primary industry is concerned with the production or extractions of natural resources
Term
What is the Secondary Industry?
Definition
The secondary industry covers manufacturing of the products once they come from the primary industry
Term
What is the Tertiary Industry?
Definition
The Tertiary industry-or as it is also known, the services sector
Term
What is the Quaternary Industry?
Definition
information processing, this sector includes education, computer software and financial software
Term
What is the Quinary Industry?
Definition
the provision of services such as home duties, restaurants and laundry.
Term
Define "Secured Loan"
Definition
something is deposited as a guarantee to fulfil the payment of the loan.
Term
Define "Unsecured Loans"
Definition
No guarantee is deposited.
Term
Define "Mortgage Loans"
Definition
-These loans are taken out when purchasing a home or land. Under the terms of the loan, the bank may own the property as security. If you are unable to repay the loan, the lender can seel the property to get back what is owed.
Term
Define "Credit Cards"?
Definition
-are a form of loan, this allows people to spend money and pay it back later. Credit cards normally have a credit limit; that is a specified level to which the card holder is allowed to spend. If the outstanding amount is not paid by its due date, interest is paid on that balance.
Term
Define "Credit Rating"
Definition
Credit rating is the level of suitability that someone obtains after a credit check, this rating is used to determine weather loans are cleared and how high credit card limits are set. Factors that affect a persons credit rating are whether you have had problems paying previous loans or have had late payments, your address and age and your employment details.
Term
What are the two parties to every credit transaction?
Definition
The Creditor and the Debtor
Term
What is a contract?
Definition
A contract is a legal binding document hat contains an agreement between two people that can be enforced by law.
Term
What are the three essential elements of a contract?
Definition
The three essential elements of a contract are an offer, agreement and consideration.
Term
What is the difference between the Trade Practices Act and the Fair Trading Act?
Definition
The Fair trading act is acting state-wide whereas the trade practices act is a national one.
Term
In what cases can a contract not be enforced?
Definition
When, legally, the person to sign the contract is not an adult.
Term
Name two ways in which the term "Business" is used?
Definition
Private Sector enterprises and statutory authorities which have profit as a primary goal.
Term
What is the act of making a business a legal entity?
Definition
Incorporating it.
Term
Define "Sole Trader"
Definition
A business owned and operated by one person
Term
Define Partnership
Definition
A legal business structure that is owned and operated by between two and twenty people with aim of making a profit.
Term
Define Cooperative
Definition
A group of people who join for a particular purpose. Eh Building Societies and Credit Unions.
Term
Define Franchise
Definition
A licence to operate an individually owned business as if it were part of a chain of outlets or
stores.
Term
Define Company
Definition
Through the process of incorporation this business structure is a separate entity from its owners (shareholders).
Term
Define "Trust" (in terms of commerce)
Definition
A relationship in which one person (the trustee) holds property (the trust property) on behalf of another (the beneficiary).
Term
What is the difference between a current asset and a non-current asset? Provide two examples of each;
Definition
A current asset is an asset that will be used within a year (cash, stock on hand), non-current assets will last for longer than a year (equipment, motor vehicles)
Term
What does "Owners Equity" represent?
Definition
the value of the business to the owner
Term
Assets = ?
Definition
Assets = Liabilities + Owners Equity
Term
What are the three sets of accounts recorded in a balance sheet?
Definition
assets, liabilities, and Owners Equity, which is the value of the business to the owner. To calculate it, we subtract liabilities from assets.
Term
What is another name for a "revenue statement"?
Definition
A statement of financial performance
Term
What is the difference between Bankruptcy and Insolvency?
Definition
Bankruptcy applies to individuals, insolvency applies to companies.
Term
What is the order in which things will be payed (Bankruptcy)?
Definition
1. Trustees.
2. Tax Office.
3. Secured Creditors.
4. Unsecured Creditors.
Term
What is the order in which things will be payed (Insolvency)?
Definition
1. The receiver.
2. Wages and employee entitlements.
3. Tax.
4. Secured Creditors.
5. Unsecured creditors.
Term
What is the main role of promotion?
Definition
To inform, persuade and remind customers about a businesses' products.
Term
What does promotion mix refer to?
Definition
The various promotion strategies used by a business in a promotional campaign
Term
What is meant by the term "caveat emptor" ?
Definition
Buyer Beware.
Term
What rights do youhave under the door to door sales act?
Definition
A 10 day cool off period in which no services or money may be accepted, a written contract and notice for cancelling of this contract for any goods or services over $50, the right to see identification, refuse entry and refuse to hear any sales pitch without explanation.
Term
Describe what is meant by "bait and switch" advertising?
Definition
An illegal advertising strategy in which the seller baits customers by an advertisement with a low-priced model of a product but then switches customers who seek to buy the product to a much higher-priced model by telling them that the cheaper model does not work well or is no longer in stock.
Term
What hours are sales persons allowed to visit your home?
Definition
Mon-Fri 9:00 - 8:00
Saturdays 9:00 - 5:00
And they are not allowed to visit your home on Sundays or public holidays
Term
What is the role of the CTTT?
Definition
The role of the CTTT is to resolve disputes between tenants, landlords, traders and consumers in a timely and effective manner.
Term
What is the role of the ASIC?
Definition
ASIC is the consumer protection regulator for financial services. In this role, they protect investors, superannuants, depositors and insurance policy holders. They also regulate and enforce laws that promote honesty and fairness in financial products and services, in financial markets, and in Australian companies.
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