Business Management Unit 1 AOS 1

Command Term: Define

Write the exact meaning of and identify its essential qualities

Command Term: Explain

Give a detailed account of why

Command Term: Describe

Provide characteristics or features

Command Term: Distinguish

Make clear the differences

Command Term: Dicuss

Provide an account of the advantages and disadvantages

Define Entrepreneurship

the act of starting and operating a new business in response to opportunities, assuming all the risk in the hope of making a profit

What are some reasons for starting a business?

Personal and Financial independence, Making a Profit, Fulfilling a Market or Social need.

Define Personal Independence

A person being in control of their own decisions and actions

Define Financial Independence

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

Define Making a profit

A business generating more revenue than expenses it incurred

Define 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.

Define Fulfilling a Social need

Improving society and the environment through business activities

Define a Manager

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

What are some Manager characteristics?

Communication Skills, Determination, Knowledge, Strong ethics, Flexibility

What are some sources of Business Opportunities?

Innovation, Market Opportunities, Changing Customer Needs, Research and Development, Technological Development, Global Markets

Define Innovation

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

Define Market Opportunities

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

Define Changing customer needs

The transitions in the desires of consumers

Define Research and Development

Directing resources, such as money, towards discovering, creating and introducing new products and processes

Define Technological developments

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

Define Global Markets

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

Define Business Goals

What a business wants to achieve within a specific time frame

Define SMART Goals

Criteria used to create effective goals

Explain the steps of SMART Goals

Specific, Measurable, Attainable, Relevant and Time-bound

Define Decision-Making

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

Define a 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

Define Intellectual Property

(IP) are an original creation of the mind that can be legally owned

What are the 4 legal barrier available?

Trademark, Patent, Copyright, Domain Name

Define Market Research

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

Define Initial Feasibility Study

A researched evaluation of how viable a business concept is

Define Economic Wellbeing

The reflection of the level of income, consumption and wealth people of households have to support their material living standards

What are ways businesses contribute to the economy?

Employment Opportunites, Taxation Revenue, Infrastructure, Economic Growth, International trade, Research and Development

How do Employment Opportunities contribute to the economy?

Small businesses employ lots of people, high levels of employment benefit the economic wellbeing of the nation as individuals use their income to purchase goods and services.

How does Taxation Revenue contribute to the economy?

Businesses that earn profit must pay a proportion each year to the Government, this is one of the main sources of revenue for the Government which provides access to essential services, e.g Healthcare and Education.

Define Taxation Revenue

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

Define Infrastructure

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

How does Infrastructure contribute to the economy?

The production of roads, rail networks, communication towers and water facilities all promote employment opportunities to support and facilitate these structures.

Define Economic Growth

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

How does Economic Growth contribute to the economy?

When businesses sell more, they increase the total value of goods and services produces and sold within an economy, resulting in economic growth and value.

Define International Trade

The exchange of goods and services between different countries.

How does International Trade contribute to the economy?

Exporting and Importing products can expand the market in selling products for businesses, exporting increases the economic growth of a nation as money is being fuelled into the local economy, and importing allows businesses to have access to cheaper materials internationally and can reduce the business costs and decreasing the price of the final product.

Define Research and Development

Directing resources, such as money, towards discovering, creating and introducing new products and processes

How do Research and Development contribute to the economy?

Through Research and Development, businesses can investigate new ways/improvements to existing products. This can allow businesses to meet the demand of customers, cut costs, and improve the affordability of their products.

Define Innovation and Entrpreneurship

Innovation and entrepreneurship are two of the key components driving Australia's economic growth. This encourages a culture of innovation and entrepreneurship, the government can provide support and funding for research and development, council grants, and regional startup hubs.

How can Governments provide help to Entrepreneurs/starting businesses

Government investment in research and development, Council Grants to individuals, School-based entrepreneurship programs, regional start-up hubs