Term
| What is the social role of businesses? |
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Definition
| Focus is primarily on the impact of business on the community. |
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Term
| What is the economic role of businesses? |
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Definition
| Financial impact of activities by business on various groups in the business environment. |
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Term
What is the role of business?
QWIIPEE |
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Definition
Quality of life
Wealth creation
Innovation
Income
Profit
Employment
Entrepreneurship/risk |
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Term
| How are business classified into types? |
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Definition
| Size, Industry sector, Legal structure, Location |
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Term
| What is a micro business? |
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Definition
- Employ less than 5 people
- Usually work from home |
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Term
| What are the 3 classifications of businesses? |
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Definition
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Term
| What is the secondary industry? |
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Definition
| Consists of businesses that use raw materials, combined with labour and capital equipment, to create finished products. |
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Term
| What do partnership agreements cover? |
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Definition
| How profits will be distributed, name of the partnership, roles of the people, how finance is conducted within the business, any restrictions the partners must abide by when doing business on behalf of the partnership. |
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Term
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Definition
| Refers to how the ownership of a business is registered , who controls the ownership and who covers debt. |
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Term
| List 3 features/ characteristics of a private company |
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Definition
1- 50 owners
known as shareholders
Corporations Act 2011
Limited liability
PTY LTD |
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Term
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Definition
| Organisations responsible for managing assets on behalf of individual or group of individuals. |
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Term
| Government Business Enterprise? |
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Definition
| Within the publics interest, e.g. The ABC. Set up in an act of parliament to carry out a specific function detailed in the act. Most have been privatised. |
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Term
| What factors influence a Business's competitiveness? |
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Definition
| Number of competitors, ease of entry into a new market, marketing strategies employed by competitors, local and foreign competitors. |
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Term
| What are the 4 classifications of market concentration? |
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Definition
Monopoly
Oligopoly
Monopolistic
Perfect |
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Term
| What are the most important factors when choosing a location of a business? |
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Definition
Proximity to customers
Visibility
Proximity to support services
Cost
Proximity to suppliers |
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Term
| What are the 4 parts of business culture? |
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Definition
Values
Symbols
Rituals, Rites & Celebrations
Heroes |
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Term
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Definition
| The people and groups that interact in some way with the business and have vested interests in its activities. |
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Term
| What are the internal influences on business? |
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Definition
Product
Location
Management
Resource management
Business culture |
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Term
| What are business resources? |
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Definition
Human
Physical
Informational
Financial |
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Term
| Outline the characteristics of a boom period. |
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Definition
Higher levels of employment: employ more people, sales and profits stable or increase in future.
Inflation may increase: in good times consumers are more willing to income, willing to increase prices to achieve higher profit margins.
Wages increase: as employees seek to help keep their wages rising at the same time as inflation.
Levels of spending by consumers increase. |
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Term
| Phases of the business lifecycle. |
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Definition
Establishment
Growth
Maturity
Post-Maturity |
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Term
| How can businesses expand or grow? |
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Definition
| Merger with another business, Take over another business, Franchises, Extend sales territory, Restructure business, Diversify product range or Vertical integration - production chain change. |
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Term
| What are the 3 ways a business can go in the Post- Maturity Phase? |
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Definition
Steady State
Renewal
Decline/Cessation |
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Term
| What are some challenges of the Establishment phase? |
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Definition
| High set up costs, Difficulties obtaining funds, Slow growth in sales, Difficulties finding staff with skills and high costs associated with the promotion of the business. |
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Term
| What are the external factors for business failure? |
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Definition
Government policies
Unexpected competition
Natural disasters |
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Term
| What are the internal factors for business failure? |
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Definition
| Lack of management knowledge and skills, Inadequate planning, Lack of adequate cash flow and finance, Incorrect location, Unable to service excessive debt or Death or illness of a key individual. |
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Term
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Definition
| Bankruptcy is a declaration that a business, or person is unable to pay his or her debts. |
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Term
| Define: Voluntary Administration |
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Definition
| Occurs when an independent administrator is appointed to operate the business in the hope of trading out of the present financial problems. |
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Term
| What are product influences? |
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Definition
1. The types of goods and services produced.
2. Product influence is reflected in the type of business.
3. The size of the business. |
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Term
| What are the two economic cycles? |
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Definition
| Recession and Boom periods |
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