Commerce Task 2

A comprehensive set of vocabulary flashcards covering the fundamentals of starting a business, market strategies, legal structures, and financial options based on the provided commerce lecture notes.

Entrepreneur

An individual who starts, operates, and assumes the business venture.

Market Research

The process of collecting and analysing data about customers and business opportunities to understand consumer behaviour.

Location

A factor in opening a business where the owner chooses a site that maximises revenue, such as one with high foot traffic.

Demographics

Population characteristics that affect consumer spending, such as age, gender, ethnicity, and income.

Competition

The rivalry amongst businesses where a company must be mindful to stand out from similar markets.

Target market

The specific group of customers whom a business intends to sell its products to and concentrates its marketing towards.

Mass marketing

An approach involving marketing and selling a product to a wide range of consumers to achieve a large customer base.

Market segmentation

The process of dividing the market into smaller, distinct groups to meet customer needs and allow for more effective advertising.

Niche market

A business approach that focuses on a small, highly specialised group of customers, allowing for less competition and higher prices.

Unincorporated

A legal structure where the business and owner are considered the same legal entity.

Incorporated

A legal structure where the business and owner are separate legal entities.

Sole trader

A business owned and operated by one person, characterized by low cost and complete control but unlimited liability.

Partnership

A business owned by $2-20$ people, allowing for pooled funds and shared responsibility.

Private (Proprietary) company

A company with $2-50$ private shareholders that must have "Pty Ltd" in its name.

Public Company

A large business with an unlimited number of shareholders listed on the Australian Securities Exchange that must have "Ltd" in its name.

Incorporated Association

A small-scale, not-for-profit organisation of $5$ or more people that cannot operate outside of the state where they are registered.

Equity

Finance that comes from within a business, such as capital, retained profits, or ordinary shares.

Debt

Finance that comes from external sources such as banks, finance companies, and trade suppliers.

Loan

An agreement to borrow a set amount of money that needs to be repaid within a term, involving interest payments.

Fixed Rate

A type of loan interest that is locked in for the term, which allows for financial planning.

Variable Rate

A type of loan interest that fluctuates with current economic interest patterns and may increase or decrease.