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Goods
Tangible products
Services
Intangible products, tasks paid to do
Production
The process of creating finished products
Semi-finished products
Products ready to be incorporated into finished products
Finished products
Products ready for consumption
Business activities
Management, Production, Marketing, Controlling products, Forecasting finances, Planning finances, Distributing goods and services and organising resources are all ________ _________.
Functions of Business
Profit, Employment, Incomes, Choice, Innovation, Entrepreneurship and risk, Wealth, Quality of life are all _________ __ ________
Profit
Return/reward from sales
Employment
Providing jobs, 80% of sector
Income
Money that business provides to owners/shareholders and employees
Choice
freedom of opportunity and competition
Innovation
Improving products through research + development, and study of existing products
Entrepreneurship and risk
Creating a business; chance to turn ideas into a livelihood
Wealth
Higher levels of economic growth
Quality of life
Standard of living influenced by resources and products that are avaliable
Revenue
Gross sales
Expenses
Money spent to run business, finance debts etc.
Income
Money an individual receives
Wage
An income earned for services provided to the employer e.g. hourly casual work
Salary
An income; fixed funds on a regular basis
Dividends
An income earned from being a shareholder
Research and Development
Processes taken by a business to improve existing products, create new products and develop efficient methods of distributing and marketing products
entrepreneur
A person who starts a business
Risk
A decision that could either lead in success or failure; entrepreneurship with no track record of demands/no guaranteed returns
Taxation
Money deducted by the government from various resources i.e. products, income etc.
Benefits
The perks of employment, i.e. holidays
Micro business
A business with less than 5 employees, including the owner; subcategory of small business
Small business
A business with under 20 employees
Medium business
A business with a number of employees between 20-199
Large business
A business with 200+ employees
SOHO
Small Office Home Office; an office at the owner's home
Transnational corporation
A company that operates in more than one country
Subsidiary
A business that is owned by a larger 'parent' business
Local business
A business operating within a small region
National business
A business operating within one country
Global business
A business that operates in multiple countries; classification of geographical spread
Natural resources
resources taken directly from the ground/earth; raw materials
Primary sector
Sector comprised of production of natural resources and raw materials
Secondary sector
Sector comprised of producing raw materials into semi-finished products
Tertiary sector
Sector comprised of sevices
Quaternary sector
Sector comprised of transfer of information and knowledge; sub-sector of tertiary
Quinary sector
Sector comprised of services traditionally performed at home; sub-sector of tertiary
Incorporation
The process a company takes to become its own legal entity
Unlimited liabilty
The owner(s) are responsible to source finance for the business' debts
Sole Trader
One person runs the business; unincorporated
Partnership
The business has between 2-20 owners, and is unincorporated
Perpetual succession
The term used for a business' ownership: the business recycles owners/directors
Shareholder
Someone who owns a share of a company; a stakeholder
Limited liability
All shareholders own collective liability of the business's profits and debts
Privatisation
The transferral of government-owned businesses to the private sector
Franchisor
An individual/group that grants the franchise
Franchisee
An individual/group that purchases business rights to distribute products under that business' name
Float
Raising capital through share sales
Prospectus
A document that has details of a company and invites the public to invest in shares
Venture capital
An investment in a potentially successful, yet struggling business
External Influnce
Factors of which the business has very little/no control of in the business environment
Internal Influence
Factors of which the business has some degree of control over in the business environment
Business environment
The surrounding conditions in which the business operates
Economic influence
Fluctuations on the economy that affect businesses
Economic cycle
Periods of growth and recession that fluctuate according to economic activity
Government policies
Policies input by the government to keep the economy stable
Recovery
A climb in economic activity
Recession
A descent in economic activity
Peak
When an economy hits its top economic activity levels, and will eventually begin to decline
Trough
When an economy hits its bottom economic activity levels, and will eventually begin to rise
Deregulation
Removal of a government regulation from an industry
Geographical influences
Internal influences that relate to the geographic location of the business, and other geographic information
Globalisation
The process of money, people, goods and ideas moving around the world faster and cheaper
Demography
The study of particular features within a population
Goods and services tax
Tax on products sold, currently at 10%
Superannuation
An amount of income deducted and stored in an account for an individual's retirement
Payroll tax
Tax on wages paid/payable by an employer for an employee
Financial influcences
External influences affected by finance, and the money flow of the business
Social influences
External influences in the business environment affected by changes in taste, fashion and culture
Legal influences
External influences on the business environment through regulations of business operations
Political influences
External influences derived from state and federal governments
Institutional influecnes
External influences by business-related groups, unions and organisations
Technological influences
External influences on the business environment of changes and updates in modern technology
Competitive situational influences
External influences on business competition
Sustainable competitive advantage
An 'edge' that a business has over competitors because of marketing strategies or features in products
Monopoly
Only one business in a market e.g. Australian Post, RailCorp
Oligopoly
Several controlling business in a market i.e. banks, oil, car manufacturers
Monopolistic competition
Large number of business in a market i.e. clothing, local retail
Perfect competition
Huge number of small businesses selling similar products e.g. fruit + veg
Ease of entry
The ability of a person (or persons) to establish a business within a particular industry
Product influences
Internal influences on the type of goods and services a business sells
Location influences
Internal influences of situated area the business operates in
Complementary business
A business that sells similar goods and services
Resource influences
Internal influences that refer to the resources the business has access to
Human resources
A business' resources relating to employees
Information resources
A business' resources relating to knowledge that is accessible
Physical resources
A business' tangible resources such as machinery
Financial resources
A business' access to cash such as debt and equity
Debt
A sum of money that is owed or due
Equity
The value of shares issued by a company; loans that do not have to be repaid
Management influences
Internal influences on the business environment's methods of operation
Traditional organisational structure
A hierarchy of management; older business structure (3 words)
New organisational structure
A flatter level of organisation; newer style business structure (3 words)
Labour
Work that an individual performs
Business culture influences
Internal influences on the business' vibe, employees affinity and cooperation/efficiency of business operations
