Nature Of Business

Front 1

Business culture

Back 1

Refersto the values, ideas, expectations and beliefs shared by members of anorganisation

Front 2

Complementary business

Back 2

A business that sells a similar range of goods and services

Front 3

Demography

Back 3

Factors such as sex, age, income and cultural background

Front 4

Deregulation

Back 4

The removal of government regulation with the aim of increasing efficiency and improving competition

Front 5

Ease of entry

Back 5

Refers to the ability of a person (or persons) to establish a business within a particular industry

Front 6

Ecological sustainability

Back 6

Occurs when economic growth meets the needs of the present population without endangering the ability of future generations to meet their needs

Front 7

Entrepreneur

Back 7

A person who transforms their ideas into a new business, by assuming the risk of a business venture in the hope of making a profit

Front 8

Financial resources

Back 8

Funds the business uses

Front 9

Globalisation

Back 9

The process that sees people, goods, money and ideas moving around the world faster and more cheaply than before

Front 10

Growth period (boom)

Back 10

Characteristics: Higher levels of employment, inflation may increase, wages increase, level of spending by consumers increases

Front 11

Human resources

Back 11

Employees of a business; generally its most important asset

Front 12

Information resources

Back 12

Knowledge and data required by the business, such as market research, sales reports and economic forecasts

Front 13

Management

Back 13

Coordinating the business’s limited resources to achieve goals

Front 14

Market share

Back 14

Proportion of total market sales the business has compared to other competitors

Front 15

Micro business

Back 15

A business that employs less than 5 people

Front 16

Monopolistic competition

Back 16

Where there is a large number of buyers and sellers in a particular market, e.g. local retailing shops

Front 17

Monopoly

Back 17

Complete concentration by one firm in the industry, e.g. Australia Post

Front 18

Oligopoly

Back 18

Where a small number of larger firms have a greater control over a market, e.g. car manufacturers

Front 19

Perfect competition

Back 19

Where there is a large number of small firms that sell similar products and are unable to differentiate products from each other, e.g. fruit growers

Front 20

Physical resources

Back 20

Equipment, machinery, buildings and raw materials

Front 21

Primary industry

Back 21

Production from natural resources

Front 22

Privatisation

Back 22

The process of transferring the ownership of a government business to the private sector

Front 23

Production

Back 23

The activities undertaken by a business that combine the resources to create products that satisfy customers’ needs and wants

Front 24

Profit

Back 24

What remains after all business expenses have been deducted from sales revenue

Front 25

Quaternary industry

Back 25

Services that involve the transfer and processing of information and knowledge

Front 26

Quinary industry

Back 26

Services that are performed in the home

Front 27

Recession period (bust)

Back 27

Characteristics: Unemployment levels rise, inflation may remain stable or fall, wages are less likely to rise, level of spending by consumers decreases

Front 28

Regulatory body

Back 28

A body that is set up to monitor and review the actions of businesses and consumers in relation to certain issues (such as advertising)

Front 29

Secondary industry

Back 29

Production of finished or semi-finished goods

Front 30

Shareholder

Back 30

The owner/investor of a business

Front 31

Stakeholder

Back 31

Any group or individual who has an interest in or is affected by the activities of a business

Front 32

Support services

Back 32

The activities needed to assist the core operations or prime function of a business

Front 33

Tertiary industry

Back 33

Performing a service