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;
24 Cards in this Set
- Front
- Back
|
Small Business |
A business in which the owner and manager isthe same person, and which employs fewer than fifteen people. |
|
|
Reasons for Becoming a Small Business Owner: |
- Profit Motive - A desire for greater freedom/independence – to be your own boss - Identifying a market opportunity - Unemployment |
|
|
Alternative Investments |
- Cash - Property - Shares |
|
|
Term Deposit |
An investment option that requires the investor to agree to invest for a specified length of time. |
|
|
Capital Gain |
A return generated from an investment in theform of an increase in the value of an asset that can therefore be sold for more than its purchase cost. |
|
|
Negative Gearing |
A strategy used by investors to reduce their taxable income by purchasing property which generates rental income which is less than the costs it incurs. |
|
|
Capital Gains Tax |
A form of taxation charged when a gain is made on the sale of an asset. |
|
|
Share |
A document that verifies part-ownership in a public company. |
|
|
Dividend |
A share of the profit earned by a company that is distributed to shareholders. |
|
|
Franking Credit Dividend |
Dividend income received by the investor on which the company has already paid tax. |
|
|
Capital Loss |
The loss incurred when an asset is sold at a price less than its initial purchase price. |
|
|
Personal Qualities of Successful Small Business Owners |
- Expertise - Entrepreneurship - Determination - Confidence - Cordiality and Patience - Humility |
|
|
External Support Resources |
- Accountants - Lawyers - Bank Managers - Sponsored Assistance Programs |
|
|
Nature of Business Operations |
- Retail/Trading - Service - Manufacturing - Mixed Businesses |
|
|
Cost Price |
The original purchase price of stock. |
|
|
Sole Proprietorship |
A business owned by a single individual,operating their business in their own right under their own name or a registered businessname. |
|
|
Unlimited Liability |
The legal status of sole proprietorships and partnerships is that they are not recognised as separate legal entities,so the owner(s) is personally liable for the debts of the business. |
|
|
Partnership |
A business owned by two or more persons in business together with a view to making a profit. |
|
|
Proprietary Company |
A separate legal entity that is entitled to do business in its own right. |
|
|
Limited Liability |
The legal status of a company, which exists asa separate legal entity,so the owners have no further responsibility for liabilities incurred by the business. |
|
|
Goodwill |
An intangible asset representing the value of the firm’s reputation,clientele, viability and future growth prospects. |
|
|
Franchise |
An arrangement under which one party (thefranchisor) grants toanother party (the including the use of the franchise name andbusiness practices. |
|
|
Successful Small Businesses Have: |
- High demand for their product or service - A location that is visible and easily accessible for customers - Sufficient starting capital that can support the business and the owner until it is functioning in a profitable manner |
|
|
Small Businesses Fail Due to: |
- Competition from other small and large businesses - A poor location - Insufficient start up capital to support the business or the owner(s) until sales are established - Poor marketing - Poor management skills and lack of willingness to seek professional advice - Poor customer relations |
