Business Unit 1 AOS 2 Keywords

Flashcards of key vocabulary terms and definitions from a business lecture.

Accountant

A professional who provides advice on all financial management issues and taxation obligations.

Angel Investors

Individuals or businesses that invest in a new business, expecting a return on their capital and taking a role in supporting the business owner.

Bank Overdraft

When a bank allows a business/individual to overdraw their account up to an agreed limit for a specified time to help overcome a temporary cash shortfall.

Bootstrapping

Starting a business using personal finance or the revenue from the business.

Boycotting

When a customer refuses to purchase goods/services from a business as a form of protest against undesirable activities.

Bricks and Clicks

Business model that offers customers the choice of online shopping and shopping at the physical store.

Bricks and Mortar

The traditional business model based on a store with a physical presence.

Business Entity

An organisation that exists separately to its owner in order to produce and sell goods and services.

Business Environment

The surrounding conditions in which the business operates, divided into internal and external.

Business Model

The way in which the business will run its operations to generate a profit.

Business Plan

A written statement of the goals and objectives for the business, and the steps to be taken to achieve them.

Capital Resources

The tools and machinery that are used to produce goods or perform services.

Complementary Businesses

Businesses that sell products which are aimed at the same customers.

Crowdfunding

A method of raising finance through appeals for donations via social media and the internet.

Debt

The funds provided by banks, other financial institutions, government and suppliers, which must be paid back over time with interest.

Employee Retention

The ability of a business to keep employees.

Environmental Audit

A review of the extent to which a business’s activities have an impact on the environment.

Environmental Management System

A tool for managing a business’s environmental impact in a systematic and methodical manner.

Equity

The funds contributed by the owner(s) of a business to start and build the business.

Exports

Goods and services that are produced in Australia to be sold overseas.

External Environment

Factors over which the business has little control, divided into operating and macro.

Franchise Agreement

An agreement whereby the franchisor grants the franchisee the rights to use its business name and distribute its goods or services.

Franchise

When a business sells to others the rights to distribute its goods and use the business name.

Franchisee

A business that is licensed to operate under the name of an existing business and distribute its goods or services.

Franchisor

The owner of the original business concept that licenses another business to use its name and distribute its goods or services in exchange for royalty payments and fees.

Goodwill

The monetary value attached to the reputation of a business.

Imports

Goods and services that are produced overseas and sold to Australian consumers.

Incorporated

A business that has a separate legal existence apart from its owner(s).

Incorporation

The process that a business goes through to become a registered company and a separate legal entity.

Internal Environment

Factors over which the business has some degree of control; sometimes called the micro environment.

Labour Resources

The people that provide their skills, effort and knowledge to the business.

Leasing

A way of financing the purchase of assets without a large initial capital outlay.

Lessee

The person or business to whom a lease is granted.

Lessor

The owner of an asset that is leased under an agreement to the lessee.

Limited Liability

When the shareholders of a company cannot be held personally responsible for the debts of the business.

Macro Environment

The broad conditions and trends in the economy and society within which a business operates.

Manufacturing

A business that produces physical goods, often in a factory.

Mortgage

A loan on a property, secured by the property of the borrower (the business).

Natural Resources

Items the business uses that come from the natural environment.

Operating Environment

The specific outside stakeholders with whom the business interacts in conducting its business; sometimes called the task environment.

Partnership

An unincorporated business structure with a minimum of 2 and a maximum of 20 owners.

Planning

A process or series of actions to achieve an objective.

Private Limited Company

An incorporated business with a minimum of 1 shareholder and a maximum of 50 non-employee shareholders.

Prospectus

A legal document that provides details about investment in the company.

Public Listed Company

An incorporated business with a minimum of one shareholder (and no maximum), and whose shares are openly traded on the Australian Securities Exchange.

Resources

The people and objects that are needed for the business to function properly.

Retail

A business that operates by selling goods and services to the customer at a price higher than the cost to produce or purchase the goods in bulk.

Search Engine Optimisation (SEO)

The strategies used to increase the number of visitors to a website by making it more visible on search engines.

Shareholders

The owners of a company who are entitled to a share of its profits.

Silent or Sleeping Partner

One who contributes financially to a business but takes no part in the running of the business.

Sole Trader

A business owned and operated by one person.

Solicitor

A professional who provides advice on legal matters such as business formation, registration, contracts and legislation.

Staff Morale

The general level of satisfaction and wellbeing of employees.

Stakeholders

Any group or individual who has an interest in, or is affected by, the activities of a business.

Subcontractor

A person that is not directly employed by the business but has been contracted to perform certain tasks.

Terms of Finance

The amount of the repayments and frequency at which they must be made.

Unlimited Liability

When the business owner is personally responsible for all the debts of their business.

Wholesale

A business that sells large volumes of goods to retailers.

Working Capital

The funds available for the short-term financial commitments of a business.

Zoning

A means by which local councils allocate land for different uses, such as residential, commercial, recreational and industrial.