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YEAR 11 BUSINESS > NATURE OF BUSINESS > Flashcards

NATURE OF BUSINESS Flashcards

1
Q

*** ROLE OF BUSINESS

A
  • The nature of a business
    • producing goods & services
    • functions of a B
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2
Q

PRODUCING G&Ss

Business …

A

the organised effort of individuals to produce & sell products for a profit

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3
Q

PRODUCING G&Ss

Product…

A

either a goods or service or combination of both

E.G restaurant, zoo

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4
Q

PRODUCING G&Ss

Goods…

A

tangible, touchable → furniture

Goods are either intermediate or final.

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5
Q

PRODUCING G&Ss

Services…

A

intangible, an experience, goods can be attached to it → mechanic, hairdresser

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6
Q

PRODUCING G&Ss

Intermediate…

A

(made into something further) → fabric→ clothes.

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7
Q

PRODUCING G&Ss

Final…

A

oil is final product from an oil company

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8
Q

FUNCTIONS OF A BUSINESS (8)

A

profit, employment, incomes, choice, innovation, entrepreneurship & risk, wealth, quality of life.

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9
Q

PROFIT

A

Main function of a B, expenses deducted from revenue
increase profit
- ↑ sales → marketing etc
↓ expenses, economy of scale (bulk), labour, global source

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10
Q

EMPLOYMENT

A

Main source of employment in Au is from SMEs

Employment → income → self esteem → role in society

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11
Q

INCOMES

A

Bs provide income for individuals.

- Wage, salary, commision, dividend

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12
Q

CHOICE

A

Bs give consumer alternatives & freedom to choose between G&Ss
Adv→
Flexibility in PRICE of products between Bs→ monopoly, Auspost.
Improved FEATURES in products→competitive adv→meets the needs/wants of ppl

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13
Q

INNOVATION

A

variation to an existing product > done through market research

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14
Q

invention

A

complete new product

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15
Q

ENTREPRENEURSHIP & RISK

A

ability & willingness to start, operate & assume the risk of a B venture to make a profit.
→ John Foley, co founder CEO of Peloton, 6 year built 4.15B US→ rapid trend of spin classes

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16
Q

WEALTH

A

A B receives money from customers when they sell a product or service Simultaneously a B must expand money in order to pay expenses

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17
Q

QUALITY OF LIFE

A
  • Bs utilise customers want to get ahead of their competition
  • consumer trends & influences that affect the spending of customers forces Bs to change & evolve.
  • these imposed consumer constraints compel Bs to make more of what customers want
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18
Q

Quality & skills of an entrepreneur

A

positive risk takers, adventurous, innovative, financial risk taking, connection, resilient, creativity, faith, good people person, humility, willingness to listen & learn etc.

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19
Q

*** TYPES OF BUSINESS

A
  • Classification of business

- Factors influencing choice of legal structure

20
Q

CLASSIFICATION OF BUSINESS

A
  • size, geographical spread, legal structure, industry
21
Q

SIZE

A

micro, small, medium large

22
Q

SIZE

Microbusiness

A

> 5

23
Q

SIZE

Small

A

5 - 19

24
Q

SIZE

Medium

A

20 -199

25
Q

SIZE

Large

A

200 or more

26
Q

% of SMEs in AU…

A

98%

27
Q

Size is differientiated in Bs through…

A

no. employees, no. owners, market share, legal structure

28
Q

Qualitative descriptions help to determine size…

A

Owner making most management decisions, owner provides capital, finance, B has little control within market, independently owned or funded, the B is locally based

29
Q

Quantative descriptions helpt to determine size…

A
  • micro, small, no. employees
30
Q

GEOGRAPHICAL SPREAD

A

The prescence of a B and the range of its products across a suburb, city, state, country or globe
- local - national - global.

31
Q

GEOGRAPHICAL SPREAD

Local

A
  • restricted geo location
  • serves the surrounding area
    E.G hairdresser
32
Q

GEOGRAPHICAL SPREAD

National

A
  • operates within just one country

E.G Coles, myer, David jones

33
Q

GEOGRAPHICAL SPREAD

Global

A
  • large companies that have branches in numerous countries
  • multinational
    E.G Mcdonalds
34
Q

INDUSTRY SECTOR (5)

A

primary, quaternary, tertiary, secondary, quinary

35
Q

Industry…

A

Bs that are involved in similar types of products

36
Q

INDUSTRY SECTOR

Primary

A

the collection of natural resources

E.G mining, fishing, agriculture

37
Q

INDUSTRY SECTOR

Secondary

A

production of finished or semi-finished goods

E.G raw wool, fabric

38
Q

INDUSTRY SECTOR

Tertiary

A

performing a service

E.G → labour, services→ plumber, gelato store

39
Q

INDUSTRY SECTOR

Quaternary

A

the transferring and processing of information and knowledge

E.G doctor, teacher

40
Q

INDUSTRY SECTOR

Quinary

A

services that have traditionally been performed in the home

E.G cooking

41
Q

LEGAL STRUCTURE (4/5)

A

sole trader, partnership, public company, private/proprietary, govt enterprise

42
Q

Unincorporated

A

name legally tied to the B > unlimited liability

43
Q

Incorporated

A

seperate entity > limited liability

44
Q

Limited liability

A

shareholders are legally responsible for the debts of the company, only to the extent of the nominal value of their shares.

45
Q

Unlimited liability

A

legal obligations general partners & sale proprietors as they are liable for all B debts if B can’t pay its liabilities
> completely liable

46
Q

LEGAL STRUCTURE

Sole trader

A
  • unincorporated B entity

-

YEAR 11 BUSINESS (1 decks)

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