Business Unit 1 AOS1

Key words and topics for Unit 1 AOS1

Entrepreneurship

setting up, managing, and taking on the risks of a new business.

Name the 4 business motivations

To make a profit,To Fulfill a Market Need , Fill a Social Need , independence

Goal setting in business

what a business expects to achieve over a set period of time

The 3 types of Business goals

Finical, social , personal

Market research

gathering information about customers' needs

Feasibility Studies

an assessment of the business idea’s potential for success.

Economic growth

an increase in how much a country produces.

The 2 main business contributions to aus

economic contributions, social contributions

R&D

Reaserch and development

Analyse

To break something down and explain what it means and why it matters.

Explain

show how or why something happens.

Primary data

information collected from it original source

Secondary data

Existing data that someone else has already collected.

The two main business contributions to Aus

Economic Contributions, Social contributions

Infrastructure

The basic systems and structures a country or community needs to function

The 5 economic contributions

employment, economic growth, infrastructure, R&D & innovation, global competitiveness

R&D

Research and development

SMART goals

specific, measurable, attainable, relevant , Timely

Innovation

Creating something new or improved that adds value or meats a need

List 3 features/characteristics of an entrepreneur

Shared vison, innovative, innovation and enterprise

List 3 types of Personal Motivations

independence , give back to the community , develop skills

What does Corporate Social Responsibility stand for?

when a business acts ethically and takes responsibility for its impact on society and the environment — not just making profit.

List three characteristics of a business manager

Risk taker, organised, risk minimiser

What does Market conditions refer to?

Refers to the current state of a specific market

What is a Business?

An organization that provides goods and services to the community in exchange for a profit

What are the three steps taken in the market research process?

collecting data, analysing data, interpreting findings

Identify 5 business opportunities

Innovation,Market Opportunities,Research Development,Technological Development,Global Markets

What is the internal environment? Factors inside a business that it has control over.

Name the 6 types of business structures Sole trader

Partnership

Define a sole trader A business owned and operated by one person. The owner and business are the same legal entity.

What type of liability does a sole trader have? Unlimited liability

What does unlimited liability mean? The owner is personally responsible for all business debts.

Two advantages if a sole trader Full control

keeps all profit

Capital money or funds used in a business.

two disadvantages of a sole trader Unlimited liability

difficulty raising capital

Define Partnership in terms of business type A business owned and operated by 2-20 people.

Two types of partnership General partnership and Limited partnership.

In a limited partnership

what does it mean if a partner has limited liability? They can only loose the money they invest into the business.

two advantages of a partnership Shared work load

shared risk

Two disadvantage of partnership disagreements

shared profits

What is incorporation?

when a business becomes a separate legal entity from its owners

what does Pty Ltd stand for?

Proprietary Limited

What is Proprietary Limited (Pty Ltd) company?

A privately owned business where the owners and shareholders are not personally responsible for the company’s debts beyond what they invested.

Who owns a Pty Ltd company?

Private shareholders (1–50).

What type of liability does a Pty Ltd have?

Limited liability

What does unlimited liability mean?

It means the owner is personally responsible for all debts

Two advantage of private Limited company (Pty Ltd)

Limited liability and easier to raise capital.

Two disadvantage of private limited company (Pty Ltd)

expensive to set up and more regulations

What is a public listed company?

a company who shares are sold to the public on the Australian securities exchange (ASX)

What is IPO? initial public offering-when a company firstly shares on the stock exchange

Two advantages of a public listed company can raise large amounts of capital

seperate legal entity

Two disadvantage of a public listing company loss of control to shareholders

stricter regulations

What is a social enterprise? a business that exists to benefit the community rather than just make a profit.

Two advantages of a social enterprise strong reputation

improved morals

One disadvantages of social enterprise difficult to balance social and financial goals.

What is a government business enterprise (GBE)? a profit driven business owned by the government but managed separately

Two advantages of GBE government funding

provide essential services

What is government red type? excessive rules and approval processes that slowed down business decisions

What is a share holder? a person or organisation that owns at least one share in a company.

What are Dividends? A payment a company gives to shareholders from its profits.

What are the internal environmental factors? Types of businesses
Types of business models
Purchasing an existing business vs establishing a new business
Business resource needs
Business locations
Sources of finance
Business support services
Business planning
Corporate social responsibility

What is a business model? a plan that identifies how the business will operate to make a profit.

What does it mean one somebody purchases and existing business? Buying an existing business that is already set up.

Two advantages of purchasing an existing business. Already has a costumers base and reputation

start making money straight away.

Two disadvantages of Purchasing a new business Business reputation may be bad

workers may become uncooperative

What is a consideration for purchasing an existing business. Why its going up for sale

its finical health

What does it mean when somebody creates a business? They start and set up a new business (from scratch)

what are some considerations when starting a business? Location

Business name and regerestration

Two advantages of creating a business Provide something new to the market

full control over the business

Two disadvateges of creating a business. more costly to start

must train new staff

Define what a business resource need is. what a business needs for it to run and reach its goals.

What are the 3 main types of business resource needs? Natural
Labour
Capital

What is a natural resource? Something found in nature (not made by humans).

What are the 3 main considerations when choosing a natural recourse? Supplier considerations

Nature of resource

What is a Labour resource? The people who provide the business with their skills and qualifications

What are the 3 main considerations when choosing a Labour resource ? Cost

Quality

What is a capital resource? it is a human-made asset a business uses to make goods or deliver services

Considerations for a Capital resource? supplier considerations

Nature of resource

What are the 6 types of Business Models? online

franchise

What are 2 advantages of an online business? Consumers can buy 24/7

reach more customers

2 Disadvantages of an online business cant try the products

security risks

What is a direct to consumer business (DTC)? A business that sells directly to consumers without intermediaries

2 advantages of a DTC business More control over branding/marketing

often higher profit

2 disadvantages of a DTC business more competition

may reach fewer costumers

What is a bricks and mortar business? A business with a physical store

2 advantages of a bricks and mortar business? costumers can try the products

Face to Face service

2 disadvantages of a bricks and mortar business Must travel to the store

property upkeep/maintenance

Reputation The opinion people have about a business and how trustworthy and reliable they think it is

What is a Franchise? When a person buys the right to run a business using a company’s name and resources.

Importer Buys goods from overseas to sell locally.

Exporter Sells goods from its country to overseas.

2 Advantages of a shopping center Lots of customers

easy parking

Disadvantages of a shopping center High rent

lots of competitors

Shopping strip def A group of shops next to each other along a street or main road.

Advantages of a shopping strip often near public transport

local loyal customers

Disadvantages of a shopping strip Less foot traffic

high rent

Home business def when a business operates from someones home

2 Advantages of a Home Business Flexible hours

No rent for a shop

Disadvantages of a home business Less privacy

work and home life mix together

complementary business def Business located near each other because there products work well together.