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Business Preliminary > Concepts > Flashcards

Concepts Flashcards

(50 cards)

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1
Q

Role of business

A

to produce and sell goods and services in order to satisfy the needs and wants of individuals with the aim of making a profit. They provide employment, pay taxes and improv quality of life.

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2
Q

Profit

A

what remains after revenue minus cost

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3
Q

employment- types (4)

A

full time
casual
part time
self employed

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4
Q

income (3)

A

employee- wages/salaries
business owners- profits
shareholders- dividends

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5
Q

wealth

A

increasing sales increases value of business

business generate increased wealth for community through cooperate tax

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6
Q

quality of life is improved through (4)

A

improving product quality
providing employment
environmentally friendly products
satisfying needs and wants

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7
Q

factors determining type of business (6)

A

number of employees (5, 20, 200)
ownership (independent, partner, shareholders)
legal structure (sole trader, partnership, private, public, gov)
market share (small, medium, large)
industry (primary, secondary, tertiary, quaternary, quinary)
geography (local, national, global)

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8
Q

influences on the business environment (10, 5)

A

external- economic, financial, geographic, social, legal, political, institutional, technological, competitive situation, markets

internal- products, location, resources, business culture, management

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9
Q

economic external influence

A

determined by consumer buying and spending
economic cycle shows fluctuation of consumer spending
ex.
boom- more spending
downturn- low profit low amount of g&s produced

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10
Q

financial external influence (2)

A

2 sources- debt finance, equity finance

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11
Q

geographical external influence (3)

A

location
population shifts
average age

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12
Q

social external influence (3)

A

making donations
environmentally friendly
sponsoring events

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13
Q

legal external influence (3)

A

equal pay
fair conduct
emergency evacuation

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14
Q

political external influence

A

new party policies may influence business actions
ex.
green party advocate environmental policies

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15
Q

institutional external influence (4)

A

environment protection authority
Australian taxation office
Australian securities and investment commission
NSW fair trading

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16
Q

technological external influence (3)

A

increase efficiency
create opportunities for innovating/ inveneting proudcts
may be expensive –> redundancy

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17
Q

product internal influence (4)

A

distance from supplier
distance from customer, size of customer base
training and development
maintaining quality

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18
Q

location (4)

A

visibility
cost
proximity
support services

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19
Q

stakeholders internal (4) and external (5)

A

internal- managers, employees, owner, investor

external- shareholders, govern, customers, society, environment

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20
Q

business life cycle stages (4)

A

establishment
growth
maturity
post maturity

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21
Q

establishment challenges (5)

Study These Flashcards
A 
generating sufficient revenue
choosing suitable location
developing appropriate market strategies
following gov regulations
positive cashflow
22
Q

Growth challenges (2)

Study These Flashcards
A

Production costs

Remanagment of

23
Q

Maturity challenges (3)

Study These Flashcards
A

Developing strategies
Motivating employees
Ensuring financial position

24
Q

Postmaturity challenges (4)

Study These Flashcards
A

Steady state
Decline
Renewal
Cessation

25
Features of effective management (5)
Planning Organizing Leading Controlling
26
Skills and management (7)
``` Interpersonal /communications Strategic thinking Vision Problem-solving decision making Flexibility and adaptability to change Reconciling conflicting interests of stakeholders ```
27
Smart goals
``` Specific Measurable Achievable Realistic Time bound ```
28
Types of goals (6)
``` Profits Market share Growth Share price Social Environmental ```
29
Management approaches
Classical- organizing, controlling Hierarchical organizational structure Autocratic leadership Behavioural- leading, motivating, communicating Teams (decentralize power and authority) Democratic leadership styles Contingency approach- flexible, adaptable Adapting to changing circumstances
30
Management processes (4)
Operations Human resources Marking Finance
31
Operation (3)
``` Good (tangible) and services (intangible) Production process (inputs, outputs) Quality management ```
32
Human resources
Acquisition / recruitment Develop/ training Maintain/ non monetary and monetary benefits Separation/ voluntary or involuntary
33
Marketing
``` Target market Marketing mix (price, product, place, promotion) ```
34
Target marketing
Mass | Niche
35
Finance (2, 3)
Management accounting Financial accounting Cash flow Income Balance
36
% of SME in business
98%
37
Influences in establishing an SME (3)
Personal qualities Sources of information Business idea
38
Personal qualities
``` Qualification Skill Motivation Entrepreneurship Cultural background Gender ```
39
Establishment options
New Existing Franchise
40
Market influences
Goods and services Price Location
41
Finance influences
Source | Cost
42
Legal influences (4)
Business name Zoning Health Other regulations (warantees, safe products, misleading conduct)
43
Importance of business plan (4)
Assess strengths/ weakened Prepare for possible challenges Prepare for future changes Allocate financial resources properly
44
Management
Achieve most effective outcome - productivity | Achieve strategic goals of a business
45
Trend analysis
Changes over time
46
Technology
Better products | Lower costs
47
Economic conditions
Recession and booms can influence consumer buying and spending
48
Business success
Make a detailed plan Buy a franchise partnership for support Market research to identify opportunities Manage cash flow Buy an established business after investigating
49
Resources
Financial Input Staff
50
Competitions
Amount of competition will determine if a business can be established or not Depends of number of competitors in maketc

Business Preliminary (3 decks)

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