BUSINESS MANAGEMENT UNIT 2

Statutory regulations

Laws and regulations that business owners are legally required to observe when commencing and operating a business.

Business name registration

The process of registering a business name with the Australian Securities and Investments Commission (ASIC).

Domain name

The address of a website on the internet.

Taxation

A means by which the government finances its expenditure by collecting money from individuals and businesses.

Australian Taxation Office (ATO)

The government body in charge of administering and collecting tax for the federal government.

Tax file number (TFN)

A unique number issued by the ATO to individuals and organisations to assist with managing tax and other government services.

Goods and services tax (GST)

A tax that applies to goods and services.

Pay as you go (PAYG) withholding

A tax system where businesses withhold amounts from payments to employees and send them to the ATO.

Fringe benefits tax (FBT)

A tax that applies to certain benefits provided by employers to employees.

Business activity statement (BAS)

A form submitted to the ATO to report a business's taxation obligations.

Work health and safety (WHS)

The responsibility of a business owner to ensure the health and safety of workers while they are at work.

Occupational Health and Safety Act 2004 (Vic)

The principal legislation covering occupational health and safety in Victoria.

WorkSafe Victoria

A government agency that aims to reduce workplace injuries and support injured workers.

WorkCover insurance

Compulsory insurance for Victorian employers that provides cover for the cost of benefits if workers are injured or become ill as a result of their work.

Code of practice

A written set of guidelines intended to help businesses achieve standards set by the government.

Competition and Consumer Act 2010 (Cwlth)

A federal law that specifies acceptable business behaviour regarding product safety and competition.

Anti-competitive practices

Business activities that restrict or reduce competition in the marketplace.

Australian Consumer Law (ACL)

Legislation that protects consumers from misleading business practices and provides guarantees.

Consumer guarantees

A comprehensive set of rights and obligations related to the supply of goods and services to consumers.

Remedy

A repair, replacement or refund that a consumer can request if a good or service fails to meet a consumer guarantee.

Zoning regulations

Rules that determine the activities that may occur in different areas of a suburb or district.

Land zoning

The process of allocating land for particular uses, such as residential or industrial purposes.

Food Act 1984 (Vic)

Legislation that ensures businesses comply with health regulations.

Local government approval

Approval that a business must obtain before using premises or land to operate.

Financial control systems

Processes and tools allowing a business to monitor and manage its financial performance.

Budgeting

Estimating a business's financial performance for a future period.

Cash flow

The money being transferred into and out of the business.

Accounts receivable

Outstanding invoices or payments from customers the business is owed.

Inventory control

A system ensuring costs associated with maintaining inventory are minimized.

Just in Time (JIT)

An inventory system that ensures materials arrive just as needed for production.

Auditing

The process of testing and evaluating a business's accounting processes.

Record-keeping strategies

Strategies to help businesses monitor, manage, and report their financial performance.

Source documents

Written documents providing evidence of a financial transaction.

Cash book

A summary of all cash receipts and payments compiled from source documents.

Income statement

A financial report showing how much net profit a business has made over time.

Balance sheet

A financial report showing a business's assets and liabilities at a specific time.

Assets

Items of value owned by the business.

Liabilities

Debts owed by a business to others.

Owner's equity

The value of the business to the owner.

Procurement

The process of selecting suppliers and purchasing resources for business operations.

Supplier reliability

The ability of suppliers to deliver goods when needed by the business.

Supplier proximity

How close a supplier is to the business, which can affect costs.

Corporate social responsibility (CSR)

A commitment to act in a socially, financially, and environmentally sustainable manner.

Sustainable procurement

Procurement decisions considering environmental and social impacts.

Policy

A written set of guidelines employees follow when dealing with decision-making.

Procedure

A series of actions that enable a policy to be put into practice.

Equal opportunity policy

A policy that supports equal treatment of employees and procedures for handling discrimination.

Social media advertising (SMA)

Online advertising using social media channels to deliver commercial messages.

Three-dimensional (3D) printing

The production of a physical object from a digital design.

Robotics

The engineering behind the design and application of robots.

Remote work

Work conducted from home or remote locations made possible by technology.

Customer database

A bank of information on existing and potential customers.

Globalisation

The process of increasing connections between countries through trade and interactions.

Exporter

A local business that manufactures goods for overseas customers.

Exporting

Sending goods or services to another country for sale.

Marketing

The process of planning and executing strategies for goods and services.

Marketing plan

A document listing activities aimed at achieving specific marketing outcomes.

Customer base

The group of customers expected to purchase a business's goods and services.

Market

The number of all actual and potential buyers of a product.

Market share

The business's share of the total industry sales for a market or product.

Product mix

The total range of products offered by a business.

Customer service

Responding to the needs and problems of customers.

Performance indicators

Means by which a business measures its performance and evaluates objectives.

Sales analysis

Evaluating the business's performance using sales data.

Market share analysis

Evaluates a business's marketing strategies compared to competitors.

Marketing profitability analysis

A method breaking down total marketing costs into specific activities.

Brand identity

A combination of name, term, symbol or design that identifies a product.

Internal environment

Internal elements affecting customer base and brand identity.

External operating environment

External stakeholders and forces influencing marketing strategies.

External macro environment

Factors in the wider environment affecting the business's marketing strategy.

Market research

Gathering information to assist business owners in making informed decisions.

Primary data

Information collected from original sources for specific research.

Survey

Gathering data by interviewing people.

Observation

Recording customer behavior without direct contact.

Experimentation

Gathering data by altering factors under controlled conditions.

Secondary data

Information collected for another purpose, often by others.

Internal data

Information collected by internal sources.

External data

Published data from outside the business.

Market segmentation

Dividing a market into groups sharing common characteristics.

Market dimensions

Elements used to identify market segments.

Target market

A selected market segment targeted by marketing strategies.

Primary target market

The main segment for marketing resources.

Secondary target market

A smaller and less important market segment.

Niche market

A narrowly selected target market segment.

Consumer trends

Changes in consumer preferences over time.

Consumer behaviour

Understanding consumer motivations for purchasing products.

Product life cycle

Stages a product passes through from introduction to decline.

Introduction

The period during which a new product is launched into the market.

Growth

The stage when the product begins to increase sales.

Maturity

The stage when product sales reach their peak.

Decline

The stage when a product's sales begin to fall.

Extension

When a product is revived and begins a new cycle of growth.

Diversification

Involves new products and new markets to spread business risks.

Customer relations

Strategies to enhance customer experience and loyalty.

Quality customer service

How well a business responds to customer needs.

Customer feedback

Information collected from customers to assess satisfaction.

Customer loyalty program

A rewards-based program for frequent customers.

Artificial intelligence (AI)

Intelligence demonstrated by machines compared to human intelligence.

Social media marketing

Using social media to promote products or services.

Email marketing

Using email to market a business and its offerings.