Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
96 Cards in this Set
- Front
- Back
|
horizontal intergration |
when a business acquires or merges with another firm that makes or sells similar products |
|
|
undercapitalisation |
occurs when there are sufficient funds to operate a business normally |
|
|
voluntary cessation |
occurs when an owner ceases to operate a bussiness of their own accord |
|
|
insolvent |
occurs when a company is unable to pays its debts as and when they fall due |
|
|
bankruptcy |
a declaration that a person is unable to pay his or her debt
|
|
|
diversification |
occurs when a business acquires or merges with a business in a completely unrelated industry |
|
|
acquisition |
occurs when one business takes control of another business by purchasing a controlling interest in it |
|
|
business life cycle |
the stages of growth and development a business can experience |
|
|
realisation |
the process of converting the assets of business into cash |
|
|
liquidation |
occurs when an independently and suitably qualified person, the liquidator, is appointed to take control of a business with the intentions of selling all the company's assets in an orderly and fair way in order to pay the creditors |
|
|
cash flow |
the money coming into the business in the form of cash receipts, and the money leaving the business as cash payments |
|
|
involuntary cessation |
occurs when the owner is forced to cease trading by the creditors of the business |
|
|
voluntary administration |
when an independent administrator is appointed to operate the business in hopes of trading out the present financial problems |
|
|
vertical intergration |
when a business expands at a different but related levels of production and marketing of a product. i.e merging with suppliers |
|
|
creditors |
those people or business who are owed money |
|
|
recievership |
where a business has a reciever take charge of the affairs of the business, unlike liquidation, the business may not necessarily be wound up.
|
|
|
merger |
occurs when the owners of two separate business agree to combine their resources and create a new orgaisation |
|
|
business (corporate) culture |
refers to the ideas, beliefs, expectations and values of shared by members of the organisation |
|
|
market concentration |
the number of competitors in a particular market |
|
|
globalisation |
the process that sees people, goods, money and ideas moving around the globe faster and more cheaply then before. |
|
|
economic cycle |
the periods of growth(boom) and recession(bust) as a result of fluctuations in the general level of economic activity |
|
|
goods and services tax(GST) |
a broad-based tax of 10 percent on the supply of most goods and services consumed in australia |
|
|
support services |
the activities needed to assist the core operations or prime functions of a business |
|
|
stakeholders |
any group or individual who has an interest in or is affected by the activities of a business |
|
|
human resources |
the employees of a business and are generally its most important asset |
|
|
regulations |
rules, laws or orders that businesses must follow
|
|
|
monopoly |
complete concentration by one firm in the industry e.g. Australia post |
|
|
complementary business |
one that sells a similar range of goods and services |
|
|
financial resources |
the funds a business uses to meet its obligations to its creditors
|
|
|
ecological sustainability |
when economic growth meets the needs of present population without endangering the ability of future generations to meet their needs |
|
|
business enviroment |
the surrounding conditions in which a business operates. it can be divided into two broad categories: internal and external |
|
|
deregulation |
the removal of government regulation from industry, with the aim of increasing efficiency and improving competition
|
|
|
perfect competition |
when there is a large number of small firms that sell the same product. they are unableto differentiate products from each other and so can only use price as a way of achieving market share, e.g. fruit and veg growers |
|
|
physical resources |
include equipment, building, machinery and raw materials. |
|
|
internal enviroment |
those factors over which the business has some degree of control |
|
|
oligopoly |
where a small number of larger firms have a greater control over a market, e.g. car manafacturers |
|
|
sustainable competitive advantage |
the ability of a business to develop strategies that will ensure that it has an edge over competitors for a long period of time. |
|
|
external environment |
those factors over which the business has very little control |
|
|
monopolistic competition |
where there is a large number of buyers and sellers in a particular market, e.g. local retailing stores |
|
|
information resources |
the knowledge and data required by the business, such as sales report, market research, legal advice, economic forecasts and technical material. |
|
|
limited liability |
a feature of corporate ownership that limits each owners financial liability to the amount of money he or she has paid for the business shares |
|
|
partnership |
a legal business structure which is owned and operated by between two and 20 people with the aim of making a profit |
|
|
quinary industry |
all services that have traditionally been performed in the home |
|
|
e-commerce |
the buying and selling of information and products via the internet |
|
|
incorporated |
the process companies goes through to become a separate legal entity from the owner/s |
|
|
proprietary (private) company |
an incorporated business and usually had between 20 and 50 private shareholders |
|
|
float |
the raising of capital through the sales of company shares to the public |
|
|
tertiary industry |
industry involved in performing a service for others |
|
|
global business |
commonly referred to as a transnational company(TNC), is a large business with a home base in one country that operates partially or wholly owned companies in other countries |
|
|
market share |
refers to a business's shares of the industry sales for a particular product |
|
|
geographical spread |
the presence of a business and the range of its products across a suburb, city, state, country or the globe. |
|
|
government enterprise |
government owned and operated businesses |
|
|
venture capital |
money that is invested in small and sometimes struggling businesses that have the potential of becoming very succesful |
|
|
unlimited liability |
occurs when the business owner is responsible for all the debts of his or her business |
|
|
primary industry |
all those business in which production is directly associated with natural resources, e.g. farmers |
|
|
privatisation |
the process of transferring a government owned business to the private sector. |
|
|
incorporation |
the process a company goes through to become incorporated, i.e. to become a registered company and a separate legal entity |
|
|
transnational(multinational) company |
a company that has branches in many different countries |
|
|
quaternary industry |
includes the services that involve the transfer and processing of knowledge. e.g. banking |
|
|
franchise |
buying the rights from another business to distribute its products under its name |
|
|
prospectus |
a document giving details of a company and inviting the public to buy shares in it |
|
|
micro business |
employs fewer than 5 people (including the owner) |
|
|
sole trader |
a business that is owned and operated by only one person |
|
|
industry |
consists of businesses involved in similar types of production |
|
|
franchisee |
an individual or business that purchases a franchise |
|
|
local business |
has a very restricted geographical spread; it serves the surrounding area |
|
|
franchisor |
an individual or business that grants a franchise |
|
|
national business |
one that operates in just one country |
|
|
secondary industry |
involves taking a raw material and making it into a finished or semi-finished product. |
|
|
business |
the organised efforts of individuals to produce and sell, for a profit, the products that satisfy individuals needs and wants. |
|
|
revenue |
the money a business receives as payment for its products |
|
|
innovation |
an improvement on something already established |
|
|
shareholders |
people who are part owners of a company because they own a number of shares |
|
|
finished product |
one that is ready for a customer to buy and use |
|
|
risk |
the possibility of loss |
|
|
quality of life |
the overall well-being of an individual and is a combination of both material and non-material benefits. |
|
|
entrepreneurs |
someone who starts, operates and assumes the risk of a business venture in the hope of making a profit |
|
|
research and development |
a set of activities undertaken to improve existing products, create new products and improve production |
|
|
operating expenses |
all the costs of running a business except the cost of goods sold |
|
|
income |
money received by a person for providing his or her labour, or a business from a return on its investments |
|
|
product |
a good or service that can be bought or sold
|
|
|
invention |
the development of something new |
|
|
profit |
what remains after all business expenses have been deducted from sales revenue |
|
|
wage |
money received by workers, usually on a weekly bass for services they provide to an employer. e.g casuals |
|
|
choice |
the act of selecting among alternatives |
|
|
goods |
items that can be seen or touched |
|
|
salary |
a fixed amount paid on a regular basis, usually fortnightly or monthly, to a permanent employee of a business. |
|
|
dividend |
part of a businesses profit that is divided among shareholders |
|
|
production |
those activities undertaken by the business to create products that satisfy customers needs and wants |
|
|
service |
things done for you by others |
|
|
stages of a business life cycle |
establishment growth maturity post-maturity
|
|
|
external influences in the business enviroment |
social institutional legal geographic economic markets political competitive situation technological financial |
|
|
Internal influences in the business environment |
product management business culture location resource management
|
|
|
classification of business |
Geographical spread- local, national, global Industry- primary, secondary, tertiary, quaternary, quinary Legal structure- sole trader, partnership, private company, public, company, government enterprise Size- small to medium enterprise, large
|
|
|
factors influencing choice of legal structure |
size finance ownership
|
|
|
role of business P.I.E.C.E. I.Q. W. |
Profit Quality of life Income Wealth creation Employment Choice Entrepreneurship and risk Innovation |
