year 9 business

ahhhhhhhhhhhhhhhhhhhHHHHHHHHHH

MNC (multinational corporation)

a company that operates in its home country, as well as in other countries around the world

global supply chain

the process of organising all the steps needed to make and deliver products to customers across different countries. can include inputs and phases of development, production and distribution.

business

any organisation that produces and sells for profit, the goods and services satisfy our needs and wants.

profit

what money remains after all business expenses are deducted from sales revenue.

sole trader

a business owned and operated by one person

private company

a business owned that usually has between 2-50 private owners called shareholders.

public company

a business that has an unlimited number of shareholders traded on a stock exchange

term deposit

when you lock away an amount of money for the term (an agreed length of time) and you can’t access the money until the term is up. in return for locking it away, you receive a fixed amount of interest for the term selected.

superannuation

money set aside during your working life for when you retire

describe the relationship of the risk reward model

the higher the risk of your growth assets, the higher the return of your money, but higher the potential loss

explain the concept of compound interest

when you earn interest on both your initial money and the interest you've already earned

benefits of savings account

• can access your funds any time

• earns interest

savings account drawbacks

• accounts must have a minimum balance

• low return: lower interest rates

term deposit benefits

• no service/startup fees

• protected from slumps in the market

term deposit drawbacks

• money isn’t accessible

• won’t benefit from rises in the market

asx sharemarket benefits

• liquidity (ease of converting an asset into cash)

• cost-effective

asx sharemarket drawbacks

• share prices can rise and fall rapidly

• emotional investing

describe a risk profile

the level of risk an individual is prepared and able to accept in their financial circumstances

phishing emails

trick you into giving computer access

• encourages you to click on a link/attachment that is posed as from an organisation you trust

• if you click, malicious software is installed and the hacker has access to personal info and files.

romance scams

scammers create fake dating profiles on dating websites

• try to enter a relationship w/ you to get your personal info and money

• often ask for money for health-related/family “issues”

• exploit your emotions

mnc positives

• investment = economic growth

• less developed countries: jobs created, standard of living increases

• stimulate other businesses in the area

mnc negatives

• profits returned to home country rather than host country

• often exploit developing countries by paying low wages

• often have poor environmental conditions in host country

competitive advantage

when a business can produce and sell goods/services better than its competitors

why seek a competitive advantage?

• consistently succeed in the industry

• increase number of customers

• remain unique in an ever-competing industry

how to get competitive advantage?

• offer better price

• make consumer aware of product/service (social media)

• offer consumer better quality/perceived quality

• improve brand reputation: show corporate social responsibility

• be more responsive to consumer needs

tesla’s innovations

• affordable electric cars

• self-driving cars

• supercharging stations

• battery technology breakthroughs

• batteries to use in household

• ability to shop online