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business management > unit 1 aos2 > Flashcards

unit 1 aos2 Flashcards

1
Q

internal environment

A

factors within a business that a business has control over

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2
Q

external environment

A

the surrounding factors that can impact a business which it has minimal control over. includes operating and macro factors

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3
Q

macro factors

A

social, legal, technological, global and economic conditions that a business operates in and has no control over

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4
Q

operating factors

A

are the primary external factors impacting a business that it has some control over

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5
Q

sole trader

A

a business structure that is owned and operated by one individual

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6
Q

unincorporated

A

the business owner and the business being viewed as the same legal entity

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7
Q

unlimited liability

A

the business owner being held personally responsible for the business’s debts

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8
Q

personal income tax

A

a portion of an individual’s earnings that is paid to the government

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9
Q

3 advantages of sole trader

A

owner has full control, easy and simple to setup, owner can retain all profits

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10
Q

3 disadvantages of sole trader

A

the life of the business dies when the owner dies, difficult to take time off work, unlimited liability puts the owner’s assests at risk

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11
Q

partnership

A

a business structure that is owned by two to 20 business owners

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12
Q

3 advantages of a partnership

A

financial risks are shared between partners, owners can share workload, greater access to finance

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13
Q

3 disadvantages of partnership

A

conflicts could arise due to shared decision making amongst partners, profits needs to be shared, liabilities incurred by one partner is held by all

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14
Q

private limited company

A

an incorporated business structure that has at least one director and a maximum of 50 shareholders

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15
Q

incorporated

A

a business being established as a seperate legal entity from the owner

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16
Q

shareholders

A

the individuals who have purchased shares of a company and therefore part owners.may recieve dividends

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17
Q

dividends

A

the regular sums of money paid out to shareholders from a company’s profit

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18
Q

limited liability

A

is when shareholders are only liable to the extent of their original investment

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19
Q

3 advantages of a private limited company

A

limited liability for shareholders, greater variety of expertise, greater access to capital

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20
Q

3 disadvantages of private limited company

A

complex reporting requirements, setup process takes longer, expensive to set up

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21
Q

public listed company

A

an incorporated business that has an unlimited number of shareholders and sells its shares on the ASX

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22
Q

3 advantages of public listed company

A

shareholders have limited liability, greater access to capital, no permission needed to sell and trade shares

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23
Q

3 disadvantages of public listed companies

A

conflicts could arise through shared decision making, there are complex reporting requirements, expensive to operate

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24
Q

social enterprise

A

a type of business that aims to fulfil a community or environmental need by selling goods or services

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25
Q

3 advantages of a social enterprise

A

the community benefits from its activities, employees have purposeful work, likely to recieve financial support

26
Q

2 disadvantages of social enterprise

A

difficult to balance the achievement of financial objectives with social and may be difficult to obtain a bank loan as the busienss doesn’t solely focus on financial objectives

27
Q

government business enterprise (GBE)

A

is a business owned and operated by the government

28
Q

2 advantages of GBE

A

GBE’s can rely on the government for the initial investment, they deliver goods and services that meet the community’s needs (others may apply)

29
Q

2 disadvantages of GBE’s

A

governments and politicians can interfere, they must follow significant rules and formalities (others may apply)

30
Q

business model

A

a plan that identifies how the business will operate to make a profit

31
Q

online business

A

a business model where the goods and services are traded via the internet

32
Q

direct-to-consumer business

A

a business model where the business’s products are sold directly to consumers with no distributers involved

33
Q

bricks-and-mortar business

A

is a business that has a physical store presence

34
Q

franchise

A

a business model that grants another person the right to operate under its name, use its business systems and sells its goods and services

35
Q

importer

A

purchases goods from overseas and sells them in their home country

36
Q

exporter

A

produces goods in its home country and sells them to overseas buyers

37
Q

3 advantages of purchasing an existing business

A

the business may already have a strong reputation, time can be saved as the business processes don’t need to be developed, the business can generate revenue immediately as it is already opened.

38
Q

3 disadvantages of purchasing a business

A

employees may be resistant and uncooperative with change in ownership, previous business success could have been due to the previous owner’s personal contacts, when purchasing a business its reputation may be negative

39
Q

3 advantages of establishing a new business

A

Owners have full decision-making control, can provide something that is not currently offered, business owners can create their own positive reputation

40
Q

3 disadvantages of establishing a new business

A

There may be difficulty in building a customer base, there is greater risk, uncertainty, and room for error, it may be time consuming to find and train new staf

41
Q

resources

A

the items required by a business to produce its goods and services. includes natural, labour and capital

42
Q

natural resources

A

are raw materials from the environment that are used in the production of goods and services. CSR is a factor affecting

43
Q

labour resources

A

are the people who provide the business with their skills and qualifications to conduct business activities. Cost is a factor affecting

44
Q

capital resources

A

are man-made goods used in the production of goods and services. Supplier considerations is a factor affecting

45
Q

business locations (4)

A

the physical or non-physical place that a business operates from. Shopping centres, shopping strips, home businesses, online businesses

46
Q

factors affecting shopping centre

A

high visibility, high cost, high proximity to competitors

47
Q

factors affecting shopping strips

A

high visibility, variable cost (dependent on popularity), high proximity to competitors

48
Q

factors affecting home businesses

A

low visibility, low cost, low proximity to competitors

49
Q

factors affecting online businesses

A

only have visibility through advertisements, minimal costs, high access to competitors

50
Q

what are the 4 sources of finance

A

equity capital, debt capital, grants, overdraft facilities

51
Q

equity capital

A

money contributed to a business by an investor in exchange for partial ownership. includes personal, private and public equity.

52
Q

personal equity

A

could inclue the personal savings of a business owner or money borrowed from family and friends

53
Q

private equity

A

money from selling shares to individuals or money from an angel investor (business mentor)

54
Q

public equity

A

can include money from selling shares on the ASX

55
Q

debt capital

A

the money that has been lent to a business by an external source that must be paid back overtime with interest. bank loans or long-term loans

56
Q

grant

A

is money provided by a government or another organisation for a particular reason

57
Q

overdraft facilities

A

agreements between banks and businesses or individuals, that allow a bank account to be withdrawn below zero

58
Q

business support services

A

are the specialised people facilities, or amentities that aim to help businesses successfully operate. such as legal (solicitor), financial (accountant), technological and community based.

59
Q

business planning

A

is the process of establishing a business’s goals and developing strategies to achieve them

60
Q

SWOT analysis

A

a planning analysis tool that helps a business identify its internal strengths and weaknesses, as well as any external opportunities and threats

business management (4 decks)

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