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The nature of business Flashcards

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1
Q

What is a business?

A

An organised effort by people to produce and sell for a profit

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2
Q

What do businesses sell?

A

Products that satisfy individual needs and wants

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3
Q

What is a product?

A

Goods or services

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4
Q

What are goods?

A

Items that can be seen or touched and have tangible qualities

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5
Q

What are services?

A

Things done for you by others normally intangible

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6
Q

What is sales revenue?

A

Money a business receives from selling products

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7
Q

What is profit?

A

What is left after all business expenses have been deducted from sales revenue

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8
Q

What is income for an individual?

A

The amount of money received for providing their labour

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9
Q

What is income for a business?

A

The return on investment

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10
Q

What is a wage?

A

Income usually received weekly or fortnightly based on an hourly rate

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11
Q

What is a salary?

A

Income paid on a regular basis (fortnightly or monthly) to a permanent employee

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12
Q

What does choice mean for consumers?

A

The opportunity to purchase a variety of products at competitive prices

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13
Q

What is invention?

A

Something completely new that never existed before

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14
Q

What is innovation?

A

An improvement on something that already exists

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15
Q

What is an entrepreneur?

A

Someone who starts a business with the intention of making a profit

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16
Q

What is wealth?

A

The profit created by the business distributed to employees governments lenders and owners

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17
Q

What does quality of life refer to?

A

The wellbeing of an individual combining material and non-material benefits

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18
Q

What are the four common methods used to classify businesses?

A

Size geographical spread type of industry and legal structure

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19
Q

What are the different ways to measure a business’ size?

A

Number of employees number of owners market share and legal structure

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20
Q

What is a small business?

A

A business with less than 20 employees and a very small market share

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21
Q

What is a medium-sized business?

A

A business with 20 to 199 employees and a slightly larger market share

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22
Q

What is a large business?

A

A business with more than 200 employees and a very large market share

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23
Q

What is a micro business?

A

A business with less than five employees

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24
Q

What are the different classifications of businesses by geographical spread?

A

Local national and global

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25
What is a local business?
A business with a restricted geographical spread typically the surrounding area
26
What is a national business?
A business that operates within one country
27
What is a global business?
A business with a home base in one country that operates across the world
28
What is another name for a global business?
Transnational Corporation (TNC)
29
What are the primary industries?
Industries involved in natural resources and farming
30
What are the secondary industries?
Manufacturing industries that transform raw materials into something else
31
What is the tertiary sector?
The service sector
32
What is the quaternary sector?
The transfer of information (IT education communications)
33
What is the quinary sector?
Traditionally home-based services (hospitality tourism childcare)
34
What does it mean when a business becomes incorporated?
The company is a separate legal entity from its owners
35
What is a sole trader legal structure?
A business owned and operated by one person
36
What is unlimited liability?
The owner is the same legal entity as the business and can lose personal assets
37
What is a partnership?
A business owned and operated by between two and 20 people
38
What is a private company?
A business with 20 to 50 shareholders whose name must include 'PTY LTD'
39
What is a public company?
A business with no restriction on who can buy shares whose name must include 'LTD' and which must make financial records public
40
What is limited liability?
Owners are only liable for the amount they invested
41
What is internal business influence?
Factors within the business that it can control
42
What are the key internal influences on a business?
Product location resources management and business culture
43
What are the types of resources businesses control?
Human information physical and financial
44
What are the elements of business culture?
Values symbols rituals and heroes
45
What is the role of business in society?
Providing goods and services employment income choice innovation and contributing to wealth and quality of life
46
What is the nature of business?
Producing goods and services to satisfy needs and wants for a profit
47
What is the business life cycle?
The distinct stages a business passes through as it develops
48
What are the stages of the business life cycle?
Establishment growth maturity and post-maturity
49
What is the establishment stage?
The initial stage where the business is founded
50
What is the growth stage?
A stage in the business lifecycle that has increased complexity and responsibility
51
What is the maturity stage?
A stage in the business lifecycle that requires rethinking how the business is operated
52
What is the post-maturity stage?
Presents opportunities and threats and requires decisions for future survival
53
What is a SWOT analysis?
A tool used to analyse a business's strengths weaknesses opportunities and threats
54
What is a vision statement?
A statement that broadly states what the business aspires to become
55
What is a business plan?
A written statement of the business's goals and the steps to be taken to achieve them
56
What is monitoring?
The process of measuring actual performance against planned performance
57
What is evaluating in a business sense?
The process of assessing whether or not the business has achieved its stated goals
58
What is market share?
A business’s proportion of total industry sales for a particular product
59
What is a regulatory body?
An organisation set up to monitor and review the actions of businesses and consumers
60
What is a competitive advantage?
Something that gives a business an edge over its rivals
61
What is a TNC?
Transnational corporation also known as a global business
62
What are the external influences on a business?
Factors outside the business's direct control
63
What are internal influences on a business?
Factors within the business's direct control
64
What are financial resources?
The funds a business uses to meet its obligations
65
What are human resources?
The employees of a business
66
What are physical resources?
Equipment machinery buildings and raw materials
67
What are information resources?
Knowledge and data required by the business
68
What is business culture?
Values ideas expectations and beliefs shared by staff and managers
69
What are business values?
Basic beliefs shared among employees
70
What are business symbols?
Events or objects representing what the business believes is important
71
What are business rituals?
Routine patterns of behaviour in a business
72
Who are business heroes?
Role models that management wants staff to emulate
73
What are business ethics?
The application of moral standards to business behaviour
74
What is social responsibility?
A business's management of the social environmental political and human consequences of its actions
75
What are the key business functions?
Operations marketing finance and human resources
76
What is operations?
Activities related to the production of goods or services
77
What is marketing?
Activities related to promoting and selling products
78
What is finance?
Activities related to managing the business's money
79
What is human resources?
Activities related to managing employees
80
What is the product life cycle?
The stages a product goes through from introduction to decline
81
What is horizontal integration?
When a business acquires or merges with a similar firm
82
What is diversification?
When a business acquires or merges with a business in an unrelated industry
83
What are stakeholders?
Groups and individuals who interact with the business and have an interest in its activities
84
What is a sole trader?
A business owned and operated by one person
85
What is a partnership?
A business owned and operated by two to twenty people
86
What is the purpose of a business plan?
Outlines the desired goals and direction of the business
87
What is market analysis?
Collecting summarising and analysing information about the market
88
What are fixed costs?
Costs that do not change regardless of production output
89
What are variable costs?
Costs that change depending on the number of goods or services produced
90
What is cash flow?
The movement of money into and out of the business
91
What is a franchise?
An agreement where a person buys the right to use a business name and distribute goods or services
92
What is a franchisor?
The business that grants the right to use its name and products
93
What is a franchisee?
The business that buys the rights to operate under the franchisor's name
94
What is a mass market?
A large demand for a standard product
95
What is a niche market?
A narrowly selected target market segment
96
What is a target market?
Specific groups of customers a business concentrates its marketing efforts on
97
What is product positioning?
Developing a product image compared to competing products
98
What is a business goal?
A desired outcome that a business intends to achieve
99
What is a strategy?
Actions undertaken to achieve a business's goals
100
What is a budget?
A financial plan for the future
101
What is an organisational structure?
Defines how tasks are divided and resources are used
102
What is diversification?
Business expands into a completely different industry
103
What is sustainable competitive advantage?
An advantage a business has over its competition that it can maintain over time
104
What is market concentration?
The number and size of firms in a market
105
What is ease of entry?
The ability to establish a business in a particular market
106
What is unlimited liability?
The owner is responsible for all business debts
107
What is limited liability?
The owners are only responsible for the debts up to the amount of their investment
108
What is incorporation?
The process of becoming a separate legal entity from the owners

Business Studies (2 decks)

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