Nature of Business and Business Structures - Flashcards (Fill in the Blank)

A set of fill-in-the-blank flashcards covering key concepts from the lecture notes on the nature of business, types of businesses, legal structures, external/internal influences, stakeholders, life cycle, and cessation.

Goods are __.

Items that can be seen or touched.

Services are __.

Things done for you by others.

Profit is __.

Amount remaining after all business expenses have been deducted from sales revenue.

Employment is __.

Individuals require money to purchase goods and services.

Incomes are __.

Money received on a regular basis from labour.

Wage is __.

Fixed regular payment earned for work or services.

Salary is __.

Fixed regular payment, typically paid on a monthly basis.

Shareholders are __.

An owner of shares in a company.

Dividend is __.

Sum of money paid regularly by a company to its shareholders out of its profit.

Choice is __.

Act of selecting among alternatives.

Innovation is __.

Creating a new product, service or process, or significantly improving the existing one.

Entrepreneurship is __.

Someone who starts, operates and assumes the risk of a business venture with hope to make a profit.

Wealth Creation is __.

'Engine room' leading to economic growth. Receive money and exchange for goods and services.

Quality of life is __.

Overall wellbeing of an individual, combination of both material and non material benefit.

Small size is defined as having __ employees.

Less than 20.

Medium-sized businesses have between __ employees.

20 and 199.

Large businesses are owned by __ shareholders.

thousands of.

In a large business, the legal form is often a __ company.

public.

Large businesses have complex decision making due to the __ of responsibilities.

division.

Finance for large businesses includes __.

Cash reserves, retained profit, sale of shares.

Global market categories include Local, National, and __.

Global.

Production directly associated with natural resources

Primary industry is..

Secondary industry involves turning raw material into finished or semi-finished products, such as __.

steel.

Tertiary industry is involved in __ goods or providing a service for other people.

selling.

Quaternary services involve transfer and processing of __ and knowledge.

information.

Quinary services are performed in the __.

home.

Incorporated refers to the process of becoming a separate legal __ from owners.

entity.

A Sole trader is owned and operated by __.

one person.

Advantage of a sole trader: The right to keep all __.

profit.

Disadvantage of a sole trader: End of business when the owner __.

dies.

Partnerships are owned and operated by __ people (2-20).

2-20.

Partnerships have __ liability.

unlimited.

Silent partners can enter business and contribute financially but take no part in __.

running the business.

A private company has a degree of control as well as __ liability.

limited.

Public company must have at least __ shareholders.

1.

Pty Ltd stands for __.

Proprietary Limited.

Unlimited liability means the owner is personally responsible for all the business' __.

debts.

Limited liability limits each owner's financial liability to the amount they have paid for the business __.

shares.

Government enterprise is government __ and operated businesses.

owned.

Float is the __ of capital in a company through the sale of shares to the public.

raising.

Prospectus is a document giving details of a company and inviting the public to __ shares.

buy.

Sources of finance include Personal savings, loans from relatives, bank loan, investing profit, trade credit, and __.

credit card.

Economic cycles include Boom and __.

Recession.

During a boom, inflation may __.

increase.

During a recession, unemployment levels __.

rise.

Legal influences require businesses to be aware of changes in __ and penalties.

legislation.

NSW Environmental Protection Authority aims to improve environmental performance and waste __.

management.

NSW Fair Trading provides information and assistance on fair and ethical __.

practices.

ASIC monitors market integrity and provides consumer protection in areas such as __ systems.

payment.

ACCC monitors anti-competitive and unfair market practices such as the misuse of market __.

power.

Trade unions aim to improve working conditions and __.

pay rates.

The Australian Securities Exchange (ASX) operates a share market where companies raise funds by issuing __.

shares.

3D printers can produce anything from replacement body parts to full-sized __.

houses.

Monopoly is a market with no __, allowing the firm to set prices (e.g., Australia Post).

competition.

small number of firms

Oligopoly markets are dominated by a…

Monopolistic competition is characterized by goods/services that are __ from competitors.

differentiated.

In Perfect competition, the only way to gain market share is through __ competition.

price.

Resources include Human, Information, Physical resources, and __.

Financial.

Management changes have led to decentralisation, people focus, multitasking, democratic management, delegation, and __ workplaces.

modern.

Elements of business culture include Values, Symbols, Rituals, and __.

Heroes.

Stakeholders include owners/shareholders, managers, employees, customers, society, and the __.

environment.

The life cycle stage characterized by a plateau in sales is __.

Maturity.

Stage of the business life cycle where expenses are higher than revenue is the __ stage.

Establishment.

Growth stage is characterized by a rapid increase in __.

sales.

Post-maturity includes Renewal and __ state.

Steady.

Decline occurs when a business fails to __ new products.

develop.

Establishing a business can take __ months.

3-6.

Voluntary cessation leads to liquidation; involuntary cessation may occur due to creditors or death; the general cessation process can include __.

liquidation.

Voluntary administration involves an independent administrator operating the business to trade out of its present financial problem; this is called __ administration.

voluntary.

Receivership occurs when a __ is appointed by the court to take charge of the business.

receiver.