Business Studies: Key Concepts from Lecture Notes (VOCABULARY Flashcards)

A comprehensive set of vocabulary flashcards covering core concepts from the lecture notes on business types, structures, life cycle, management, planning, marketing, finance, HR, change management, SME considerations, and key success/failure factors.

Business

An organization or activity that produces goods or services to satisfy needs and generate profit.

Nature of a business

The overall purpose and activities involved in producing goods/services, earning profits, and creating value for stakeholders.

Goods and services

Tangible products (goods) and intangible acts or performances (services) produced to meet needs.

Profit

Financial gain after deducting costs and expenses from revenue.

Employment

Jobs created or sustained by a business activity.

Incomes

Earnings generated by a business, wages, salaries, and profits distributed to owners or employees.

Choice

The allocation of resources to satisfy wants and needs within a business.

Innovation

Introduction of new ideas, products, processes, or methods that create value.

Entrepreneurship

The act of starting and running a new business or venture, often involving risk-taking and innovation.

Risk

The potential for loss or uncertainty in business outcomes.

Wealth

Accumulation of assets, resources, and value generated by economic activity.

Quality of life

Overall well-being and standard of living resulting from income, health, environment, and contentment.

SMEs (Small to Medium Enterprises)

Businesses of smaller size defined by criteria such as employees, turnover, or assets; often more flexible and localized.

Large (business)

Businesses with sizeable scale, often with more employees, assets, and market reach.

Local

Business activities and markets confined to a nearby area or community.

National

Business activities and markets spanning an entire country.

Global

Business activities and markets operating across multiple countries.

Industry

A sector of the economy classified by the type of economic activity: primary, secondary, tertiary, quaternary, quinary.

Primary industry

Sectors involved in extracting natural resources (e.g., farming, mining, forestry, fishing).

Secondary industry

Sectors involved in manufacturing and processing raw materials into finished goods.

Tertiary industry

Sectors providing services rather than goods (e.g., retail, healthcare, education).

Quaternary industry

Knowledge-based activities involving information processing and technology (e.g., IT, research).

Quinary industry

High-level decision-making and complex services often linked to government or top-tier organizations.

Legal structure

The legal form of a business (sole trader, partnership, private company, public company, government enterprise).

Sole trader

A business owned and run by one person with unlimited liability.

Partnership

A business owned by two or more individuals sharing profits, losses, and liabilities.

Private company

A company (e.g., Pty Ltd) with limited liability and shares not publicly traded.

Public company

A company whose shares are traded publicly on a stock exchange with limited liability.

Government enterprise

A business owned and operated by the government.

Factors influencing choice of legal structure

Considerations such as size, ownership, finance, liability, and regulatory environment.

External influences

Macro factors outside the business (economic, financial, geographic, social, legal, political, technological, competitive markets).

Internal influences

Factors within the business (products, location, resources, management, culture).

Stakeholders

Individuals or groups with an interest in the business (owners, employees, customers, suppliers, community, government).

Growth

Increase in size, output, or market share of a business over time.

Decline

Decrease in business size, performance, or market share.

Business life cycle

Stages through which a business progresses: establishment, growth, maturity, post-maturity.

Establishment

Initial phase of starting a business focused on viability and setup.

Post-maturity

Stage after maturity where growth slows or stabilizes; challenges may arise.

Responding to challenges

Actions taken at each life-cycle stage to address threats and opportunities.

Voluntary cessation

Business closure by choice (often followed by liquidation).

Involuntary cessation

Forced business closure due to external pressure (e.g., insolvency).

Liquidation

Selling assets to pay debts and close the business.

Management

Process of coordinating resources to achieve goals and objectives.

Features of effective management

Clear goals, planning, organizing, directing, evaluating, and adjusting as needed.

Interpersonal skills

Ability to interact effectively with others (teamwork, communication, empathy).

Strategic thinking

Planning long-term actions to achieve competitive advantage and goals.

Vision

A clear long-term view of what the business aims to become.

Problem-solving

Identifying and resolving issues to maintain performance.

Decision-making

Choosing the best course of action among alternatives.

Flexibility

Willingness to adapt to changing circumstances.

Adaptability to change

Ability to adjust strategies and operations in response to change.

Reconciling the conflicting interests of stakeholders

Balancing needs of owners, employees, customers, and others.

Profits

Financial gain after expenses; primary goal for many businesses.

Market share

Proportion of total sales in a market captured by a business.

Growth (as a goal)

Aspiration for expansion in size, sales, or market presence.

Share price

Market value of a company’s stock; a measure of investor confidence.

Social goals

Goals related to social impact and community welfare.

Environmental goals

Targets to minimize environmental impact and promote sustainability.

Staff involvement

Engaging employees in decisions and processes to improve performance.

Innovation (as a goal)

Systematic introduction of new ideas to improve products or processes.

Mentoring

Guidance and support provided by experienced staff to develop others.

Training

Systematic development of skills and knowledge for employees.

Management approaches

Different styles: classical, behavioural, and contingency.

Classical approach

Management viewed as planning, organizing, and controlling with hierarchical structure and autocratic leadership.

Behavioural approach

Management focused on leading, motivating, and communicating; teams; participative leadership.

Contingency approach

Management adapting to changing circumstances and situational factors.

Management process

Sequence of activities to coordinate functions and resources.

Operations

Activities that produce goods and/or services; the production process.

Production process

Steps involved in turning inputs into finished goods.

Quality management

Systematic processes to ensure products/services meet required standards.

Marketing

Activities to identify and satisfy customer needs and promote offerings.

Target market

Specific group of customers a business aims to reach.

Marketing mix

Key components used to market products (often 4 Ps: product, price, place, promotion).

Finance

Management of money, including planning, sourcing, and spending.

Cash flow statement

Financial report of cash receipts and payments over a period.

Income statement

Financial report showing revenues, costs, and profits over a period.

Balance sheet

Statement of assets, liabilities, and equity at a point in time.

Human resources

Activities related to recruiting, training, and managing employees.

Recruitment

Process of attracting and selecting new staff.

Training

Programs to develop employees’ skills and knowledge.

Employment contracts

Legal agreements outlining terms of work between employer and employee.

Separation

Ending employment; voluntary or involuntary termination.

Ethical business behaviour

Conduct that aligns with ethical principles and social norms.

Change management

Approach to preparing, supporting, and helping individuals adapt to change.

Business information systems

Tools and systems for collecting, storing, and using business data.

Setting achievable goals

Defining realistic targets aligned with capacities (often SMART).

Resistance to change

Opposition from individuals or groups to changes in the organization.

Management consultants

External experts who advise on improving business performance.

Influences in establishing SME

Factors like personal qualities, qualifications, skills, motivation, and demographics.

Personal qualities

Individual traits such as qualifications, skills, motivation, and background.

Sources of information

Where data and insights come from (market research, reports, etc.).

Business idea

Concept for a new product, service, or business model.

Competition

Rival firms offering similar goods or services in the same market.

Establishment options

Ways to start a business: new venture, existing business, or franchise.

Market (goods/services, price, location)

The target customers, pricing strategy, and place of sale.

Finance (source, cost)

Where funds come from and the costs of those funds.

Legal (business name, zoning, regulations)

Rules governing name use, location zoning, health and safety, and other regs.

Taxation (federal/state taxes, local charges)

Taxes a business must pay at different government levels.

Business planning process

Steps to create and implement a business plan.

Situational analysis

Assessment of internal and external factors affecting a business.