Year 11 pre Flashcards
(22 cards)
What is Vertical Integration
Buying out suppliers.
What is horizontal integration
Buying out competitors
What are the features of incorporation
- Perpetual succession exists
- The business and the owner are separate legal entities
- Limited Liability
Minimum standards and condition set out in awards are set out by who?
The national employment standards
A business wants to increase profit of 25% in 7 years. Is this a strategic goal, a financial goal, a tactical objective or an operation goal.
A strategic goal.
what is a feature of a flat organizational structure
- short chain of command
- Less supervision of employees
- Promoting increased involvement in decisions
what is a non current asset
- Investment in other properties
- Patents
- property
- Plant and equipment
- They appear on the balance sheet of the business
What are the four stages in the human resource cycle
.Acquisition, Development, Maintenance, seperation
What is development in the human resource cycle
Developing existing skills and making them better employees
What is acquisition
the learning or developing of a skill, habit, or quality.
What is maintenance in the human resource cycle
Providing benefits of working at the establishment
What is seperation in the human resource cycle
The end of the employees job.
What is the teritary industry
This is where people provide a service for you. For example mowing your lawn for money
What is the layout of an income statement
- Sales
- opening stock
- purchase
- closing stock
- gross profit
- expenses
- Net Profit
How to find COGS
Begining inventory + purchases during the period - ending inventory
How to find Gross Profit
Gross profit margin is calculated by subtracting the cost of goods sold (COGS) from total revenue and dividing that number by total revenue.
How to find Net profit
Gross Profit - Expenses
What are the stages in the business life cycle
Introduction, growth, maturity, post maturity
What is equity Finance
Equity financing is the method of raising capital by selling company stock to investors. In return for the investment, the shareholders receive ownership interests in the company
What is Debt Finance
Debt financing means borrowing money in order to acquire an asset. Financing with debt is referred to as financial leverage. Using debt financing allows the existing stockholders to maintain their percentage of ownership since no new stock is being issued.
What is the layout for business reports
- Title Page
- Executive Summary - summarise main points of the report
- Introduction - Highlights major points and provides background information
- Discussion - Everything
- Conclusion
What is the Role of Asic
ASIC is an independent Australian government body that acts as Australia’s corporate regulator. Their role is to enforce and regulate company and financial services laws to protect Australian consumers, investors and also creditors.
