VCE Business Management Units 1 & 2 Vocabulary

Flashcards reviewing key vocabulary from VCE Business Management Units 1 & 2 lecture notes.

Entrepreneurship

The process of establishing a business to satisfy a need in the market whilst taking on the associated risks.

Equity capital

Money contributed to a business by an investor in exchange for partial ownership

Financial independence

The ability to fund a desired lifestyle without relying on income from another individual.

Personal independence

Involves a person being in control of their own decisions and actions.

Fulfilling a social need

Improving society and the environment through business activities.

Fulfilling a market need

When a business fills a gap in the market by addressing customer needs that are currently unmet or underrepresented by competitors in the same industry.

Manager

An individual who has the responsibility of overseeing and handling employees whilst also running the day-to-day business tasks to achieve objectives.

Entrepreneur

An individual who starts up a business and takes on the risks associated in order to satisfy a need in the market.

Innovation

Involves creating and implementing new ideas or significantly improving upon an existing good, service, or way of doing something.

Market opportunity

A need or want that is not currently being met by any business.

Changing customer needs

the transitions in the desires of consumers

Research and development

Involves directing resources, such as money, towards discovering, creating, and introducing new products and processes.

Technological Developments

The invention and innovation of tools that solve problems and enhance processes

Global Market

The area in which businesses trade goods and services, comprised of both businesses and customers from countries all across the world.

Business Goals

What a business wants to achieve within a specific time frame.

Decision-making

The skill of selecting a suitable course of action from a range of plausible options.

Business concept

A brief outline of the business’s idea, its main selling activities, and the features that will provide it with a competitive advantage.

Intellectual property (IP)

An original creation of the mind that can be legally owned.

Market research

The process of investigating and analysing the activities and behaviours of customers and competitors in a specific industry.

Initial feasibility study

A researched evaluation of how viable a business concept is.

Economic wellbeing

Reflected by the level of income, consumption, and wealth people or households have to support their material living standards.

Tax

A compulsory payment to the government, which is used to finance the provision of public goods and services.

Infrastructure

The essential facilities and structures that are required for an economy to operate.

Economic growth

When the total value of goods and services produced by an economy increases over a period of time.

International trade

The exchange of goods and services between different countries.

Social wellbeing

A measure of the quality of life individuals have, reflected by their non-material living standards.

Start-up Hubs

Physical spaces that individuals and businesses can go to in order to have office facilities to work in, or to obtain support regarding business matters.

Council grant

A one-off financial payment from a local council to a business, which does not need to be repaid, that aims to support business ideas and development.