Business Studies Stage 6 – Preliminary Course Vocabulary

Vocabulary flashcards covering key terms from the NSW Business Studies Stage 6 Preliminary syllabus topics: Nature of Business, Business Management, and Business Planning.

Business

An organisation that produces goods or services to satisfy consumer needs and wants.

Goods

Physical, tangible items produced by businesses for sale.

Services

Intangible activities performed by businesses for customers.

Profit

The financial reward remaining after total costs are deducted from total revenue.

Employment

The provision of paid work opportunities created by businesses.

Income

Money earned by individuals and businesses, including wages, salaries and profits.

Choice

The range of options available to consumers and producers in a market.

Innovation

The creation or improvement of products, processes or ideas to gain advantage.

Entrepreneurship

The willingness to take risks and innovate to establish and grow a business.

Risk

The chance of loss or failure faced by businesses and entrepreneurs.

Wealth

The accumulated assets and economic resources generated by business activity.

Quality of Life

The general well-being of individuals and society, influenced by economic and social factors.

Small to Medium Enterprise (SME)

A business that employs fewer than 200 people and/or has limited market share.

Primary Industry

Businesses involved in extraction of natural resources, e.g., agriculture, mining.

Secondary Industry

Businesses that process raw materials into finished or semi-finished goods.

Tertiary Industry

Businesses providing services rather than goods, e.g., retail, transport.

Quaternary Industry

Information and knowledge-based services such as IT, finance and education.

Quinary Industry

Domestic and community services traditionally performed in the home, e.g., childcare, hospitality management.

Sole Trader

A business owned and operated by one person who bears unlimited liability.

Partnership

A legal business structure owned by two to twenty people sharing profits and liability.

Private Company

An incorporated business with between 1 and 50 shareholders; shares not publicly traded.

Public Company

An incorporated business listed on the stock exchange; can sell shares to the public.

Government Enterprise

A business owned and operated by government, providing goods or services.

External Influences

Factors outside the business such as economic, legal and technological forces.

Internal Influences

Factors within a business including products, location, resources and culture.

Stakeholder

Any individual or group affected by or having an interest in business activities.

Business Life Cycle

The stages of establishment, growth, maturity and post-maturity experienced by a business.

Establishment Stage

The initial phase of the business life cycle where a firm begins operations.

Growth Stage

Period of increasing sales, market share and expansion in a business’s life cycle.

Maturity Stage

Stage where sales plateau and the business seeks efficiency and diversification.

Post-Maturity Stage

Phase involving renewal, steady state or decline after maturity.

Liquidation

Process of winding up a company’s affairs by selling assets to pay creditors.

Effective Management

The ability to achieve business goals through planning, organising, leading and controlling resources.

Interpersonal Skills

Managers’ abilities to work with, motivate and communicate with people.

Strategic Thinking

Long-term, big-picture planning to position a business competitively.

Autocratic Leadership

A management style where decisions are made centrally with little employee input.

Participative (Democratic) Leadership

Leadership style that involves employees in decision-making.

Contingency Approach

Management theory advocating adaptation of strategies to suit changing circumstances.

Marketing Mix

The 4Ps—product, price, place and promotion—used to meet customer needs.

Cash Flow Statement

Financial report summarising cash inflows and outflows over a period.

Income Statement

Financial summary of revenue, expenses and profit for a period.

Balance Sheet

Statement showing a business’s assets, liabilities and owner’s equity at a point in time.

Recruitment

The process of attracting and selecting suitable staff for a business.

Separation

Ending the employment relationship; can be voluntary or involuntary.

Business Plan

A formal document outlining business goals and strategies to achieve them.

Situational Analysis

Assessment of a business’s current internal and external environment.

Vision Statement

A broad, inspirational description of what a business hopes to achieve long term.

Break-Even Analysis

Calculation determining the sales volume at which total revenue equals total cost.

Forecasting

Predicting future financial outcomes such as revenue, costs and cash flows.

Monitoring and Evaluation

Ongoing review of performance using sales, budgets and profit data.

Corrective Action

Steps taken to address variances between planned and actual performance.

Competitive Advantage

A set of unique features that allows a business to outperform rivals.

Quality Management

The processes of ensuring products or services meet consistent standards.

Cash Flow Management

Planning and controlling cash receipts and payments to maintain liquidity.

Over-extension of Finance

Taking on more debt or investment commitments than a business can support.

Trend Analysis

Examining data over time to identify patterns and inform decisions.

Ethical Business Behaviour

Practices that respect moral principles, stakeholders and legal requirements.

Management Consultant

External expert hired to advise on improving business performance or managing change.

SME Global Expansion

Process by which a small or medium enterprise enters international markets for growth.

Stakeholder Conflict

Situations where the interests of different stakeholders diverge, requiring reconciliation strategies.

Government Enterprise

A business owned and operated by a government body to provide goods or services.