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47 Cards in this Set
- Front
- Back
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Consequences of poor finance |
- bankruptcy - reposession - bad credit rating - Being taken to court |
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Sources of financial advice |
- banks - building societies - credit unions - insurance companies - stock-broker - Financial planner |
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The Financial Services Reform Act 2001 |
- Provision of a product disclosure statement - Licensing of all financial organisations - Licensing of all financial planners |
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Reasons for investing |
Major purchase, financial gain, retirement |
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Shares |
'part' of a company, usually purchased online through a stockbroker. if the company makes a profit, you receive a dividend, but if they lose money so do you. |
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property |
purchasing land or building which may value over time and you can sell, capital appreciation. Or renting out the property |
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managed funds |
an investment manager buys and sells shares or other assets on your behalf and you are paid income or distributions regularly |
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Factors affecting travel destination (destination) |
- wewather - special events - terrorism threats - political stability - general risk - health and safety -government travel advice |
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Factors affecting travel destination (personal) |
- age - gender - finance - religion - culture |
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Road travel- positive |
- flexible, go anywhere you like and stop wherever you like - relatively inexpensive -most places are accessible
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Road travel- negative |
- Can't travel overseas and over some boarders - air pollution - traffic - takes longer to travel far distances |
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Rail travel- positive |
- safer than road travel - less pollution - relatively inexpensive |
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Rail travel- negative |
- takes longer than air transport - service may be of low quality |
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Air travel- positive |
- Very fast - High service quality |
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Air travel- negative |
- problems of terrorism - frequent delays or cancellations - expensive |
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Sea travel- positive |
- safe - cost includes food and entertainment |
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Sea travel- negative |
- Access limited places with a port - very slow |
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Organising a trip yourself |
You are not tied down to a particular airline or hotel but it is very time consuming and can be very difficult to organise |
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Organising a trip through an agent |
They are experts in their field (know best places to visit and stay etc.) and have access to cheaper holiday packages. But it costs money to hire them |
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considerations when planning a trip |
- entry requirements and laws - language - passport - required visa - departure tax |
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Travel issues |
- lost or stolen passport - fees - different currencies and exchange rates - different laws and punishments for crime |
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Factors which differentiate products |
- customer service - convenience - environmental issues - value for money - social and ethical issues - image |
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Personal selling |
Promotion using sales people to converse with potential customers |
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Sales promotion |
Offering inducements to customers in an attempt to sell more of the product, e.g. competition, coupon |
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Publicity |
Free mentions of the product in the media to raise awareness of the product |
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Sponsorship/endorsement |
When a business pays to have its product or brand associated with an event, group or person |
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Word of mouth |
when a product is recommended to other people by a satisfied customer |
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Junk mail |
A form of advertising received in the mail |
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Direct marketing |
When a consumer is contacted by phone, mail or email
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Product placement |
When a product appears in a movie or tv show |
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Advertising |
a paid, non-personal message informing the public of a product or service |
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Mass marketing |
advertising through tv, radio, newspapers, magazines |
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Telemarketing |
use of the phone to personally contact a customer or potential customer |
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E-marketing |
The use of the internet to deliver advertising messages |
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Market segmentation |
Target market based on - age - gender - income - geographical location - lifestyle |
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Capital gain |
When the sale price for an asset is greater than the initial cost |
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Capital loss |
When the sale prove for an asset is less than the initial cost |
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Collateral |
an asset promised to a lender in case the borrower is unable to meet the loan reapyments |
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Equity |
The value of an investment less the amount owing on the imcestment |
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equity loan |
A loan where the equity in an asset is used as collateral for the loan that is taken out to but further assets |
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ethical investing |
investing in assets that are considered to be morally sound |
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gearing |
borrowing for the purpose of investment |
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investment |
an asset purchased in the hope of producing a capital gain or income |
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negative gearing |
an investment financed with borrowed funds where the interest on the borrowing exceeds the income from the investment |
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term deposit |
money invested for a fixed period of time, interest is paid at regular intervals |
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name brands |
a name given by the maker to a product or range of products |
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generic |
distinguished by the absence of a brand name, e.g. homebrand from woolworths |
