commerce Flashcards
(34 cards)
5-sector circular flow model:
What are the 5 sectors in the circular flow model:
Households
Firms
The rest of the world
Government
Financial factors
How does government spending influence the circular flow of income?
The government spending can influence the circular flow of income through:
injections to the circular flow: when the government spend money on goods and services for example: building new infrastructure, they are giving money into the economy, creating demand for resources. This will increase the overall economic activities as it boosts demand for goods and services from businesses.
Increased income and consumption: when the government spends money on things like infrastructure, not only will it help with businesses but it will also help workers, suppliers and contractors as the businesses pay them, this will in return create an increase in household income. Higher income leads to consumer spending, which circulates money back to businesses through demand for goods and services.
Taxation Leakages: The government collect taxes to balance the circular flow. Collecting taxes detracts from the circular flow by reducing disposable income and private spending. These taxes are then recycled back into the economy as the government spends, maintaining the circular flow.
What are the key stages of the business life cycle?
The first stage is boom, where the economy is growing and producing more goods and services. But just like a roller coaster, the economy can’t keep going up forever.
The second stage is the peak of the business cycle. This is when the economy is at its highest point before it starts to go down.
The third stage is trough, where the economy starts to decline. This means that fewer goods and services are being produced, and unemployment may increase.Economic contractions can lead to recessions, which are periods of economic hardship for many people. During a recession, people may lose their jobs, and it can be difficult to find new ones. Recessions can also lead to high levels of debt and the loss of important assets like houses or cars.
The fourth stage is recovery. This is when the economy starts to pick up again and move towards expansion. It’s like the roller coaster starting to climb back up after reaching its lowest point. The goal is for the economy to reach its full potential output, where it’s producing at its best level and unemployment is low. This is when the economy is in a stable and healthy state.
How do you change supply and demand aftermarket equilibrium:
= As product increases, demand decreases and as product decreases, demand increases. You can increase or decrease the demand through income changes, consumer preferences, and expectations of future prices. You can decrease/ increase supply through production costs, technological advancement, number of suppliers.
Provide an example of a situation where a change in demand led to a shift in market prices.
= The fish cream puff in Chinatown has raised in price because many people like it.
What are the essential elements need to prove a crime in court:
=Mens Rea(guilty mind): The mental stage or intent to commit a crime. Eg: A person plans to rob a bank. They gather weapons and maps, and on the day of the robbery, they enter the bank with the specific intention to steal money.
Strict liability offence: do not need to prove mens rea because they are lesser offense/ greater volume. For eg: if you are going over the speed limit it is assume that you know cause you have a driver license
Actus rea(guilty act): Did they commit the crime? Which could lead to:
Causation(was the crime a direct consequences of their action. For eg: you hit an old man and he die of a heart attack, this depend on if yiu kill him with a bat or if he just die of a heart attack anyways.)
How does the presumption of innocence affect criminal prosecutions:
=This refers to individuals who are innocent until proven guilty. Individuals can be proven guilty through:
The burden of proof: The prosecutor must present undeniable evidence to convict the defendant. However, the defendant can “Rights of the accused” which means that the defendant can challenge the prosecutor’s evidence, if the succeed they can avoid conviction.
Impact on jury perception: They will evaluate the evidence and if they see fit, they will convict the defendant. “Public perception” can play an important role in this as it can change the perspective of the jury.
What is the legal capacity, and how does it vary for different groups(e.g.: minors, individuals with disabilities)?
=Legal capacity refers to the ability of an individual to understand and engage in legal actions, such as entering into contracts, making decisions, or standing trial.
MINORS:
Contracts and Property: Minors have limited capacity to enter into contracts or make property dispositions. The Minors (Property and Contracts) Act 1970 outlines that contracts made by minors are generally voidable.
Medical Decisions: Minors may consent to medical treatment if they are deemed to have sufficient understanding and intelligence to comprehend the nature and consequences of the treatment.
Doli incapax: Children under the age of 10 cannot be held criminally responsible as they are presumed unable to understand the wrongness of their actions.
In what circumstances can legal capacity be restricted?
Minors: they can’t enter binding contracts, vote, or make legal decision without parental permission.
differentiate the role of police in enforcing laws, preventing crimes and investigating offences, versus the role of courts.
Police focus on maintaining public safety and responding to crime through enforcement, prevention, and investigation.
Courts focus on the legal processing of cases through adjudication, ensuring justice, and delivering appropriate sentencing.
How do different agencies collaborate to investigate crime:
- They can share information, create joined investigations, and integrate different task forces.
What are the main differences between mediation, conciliation, and arbitrations:
Mediation: a voluntary and informal process where a neutral third party, the mediator, helps the disputing parties communicate and negotiate to reach a mutually acceptable agreement.
Conciliation: is similar to mediation but often involves more active role for the conciliator, who may propose solutions and offer recommendations to help the parties reach an agreement.
Arbitration: Arbitration is a more formal process where a neutral third party, the arbitrator, hears evidence and makes a binding decision to resolve the dispute, like a judge.
How do tribunals function as a method of dispute resolution:
Tribunals function as an accessible, efficient, and specialized method for resolving specific types of disputes. Their focus on simplicity, speed, and lower costs makes them an appealing alternative to formal court proceedings, especially for cases that don’t require the extensive formality of the judicial system.
What are they key differences between full time, part time, casual and contract employment?
Full times:
Continuing, ongoing employment.
Number of hours per week is 38 or more
A range of entitlements received.
Part times:
Ongoing employment
Number of hours a week is 38 or less
Number of hours may be fixed or variable
Entilement may be received on a pro-rata basis
Casual:
Employment on an hourly or as “needed” basis
No permanent weekly roster
Hours vary from week to week; for instance 20 hours one week and 3 hours the next.
May work for more than one employer
No access on entitlements but a loading received to compensate.
Contract employment
Hours are varied by contract which can be full time or part time
Often does not include benefits although some companies may offer it if it is a longer contract.
Contract employees work for a specific duration with end and start dates.
What are the key rights and responsibilities of employees under Australian employment law?
employees rights:
Pay correct income - set by an award or agreement.
Provide a safe, healthy, and discrimination-free workplace.
Provide a payslip showing the total amount and how it was calculated.
Not require the undertaking of illegal activities.
Abide by the requirement of industrial relations legislation
Employees responsibilities:
Obey lawful and reasonable commands made by the employer.
Atten work at required times.
Use care and skill in carrying out their work activities.
Act in good faith and in the interests of the employer.
Dress appropriately for the job.
Respect colleagues and employers.
What obligations must employers meet to ensure workplace safety and fairness?
Provide a safe working environment.
Comply with occupational health and safety(OHS) laws
Safety training and information.
What roles do unions play in protecting worker’s rights?
Unions promote workplace safety, collective bargaining(fair wages, benefits, working conditions), training and skill development,etc..
How do unions negotiate for better working conditions through collective bargaining?(dk if I did this right)
Preparations and research, setting goals and formulating proposals, negotiation meetings, concession and compromise, use of leverage and collective action, drafting tentative agreements, member ratification and implementation and monitoring
What are the key responsibilities of employers under the Work Health and safety act 2010.
Duty of care to ensure health and safety.
Provision of a safe work environment.
Risk assessment.
What actions can workers take if they believe their workplace is unsafe?
They can report the hazard to a supervisor or manager, request a health and safety representative(HSR) review, and exercise the right to refuse unsafe work.
What are the key differences between sole traders, partnerships, companies and trust?
What are the key differences between sole traders, partnerships, companies and trust?
Sole traders: ONE person owns and operates the business, this person has unlimited liability as they are personally responsible for all business debt and liabilities.
Partnership: TWO or more people own and operate a business, and each partner has unlimited liability, which means all partners are personally liable for the debts and obligations of the business. If one partner incurs debt on behalf of the partnership, all general partners could be held responsible, including their assets.
Company: a legal entity separate from its owners(shareholders) and is regulated by the Coporations Act 2001
Trust: a structure where the trustee holds and manages property or assets for the benefit of beneficiaries.
What are the potential benefits of acquiring a franchise instead of starting a business from scratch?
Sales to existing customers will generate instant income.
A good business history will increase the likelihood of a business’s success
The stock has already been acquired and is ready for sale
Equipment is available for immediate use.
