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96 Cards in this Set
- Front
- Back
horizontal intergration |
when a business acquires or merges with another firm that makes or sells similar products |
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undercapitalisation |
occurs when there are sufficient funds to operate a business normally |
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voluntary cessation |
occurs when an owner ceases to operate a bussiness of their own accord |
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insolvent |
occurs when a company is unable to pays its debts as and when they fall due |
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bankruptcy |
a declaration that a person is unable to pay his or her debt
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diversification |
occurs when a business acquires or merges with a business in a completely unrelated industry |
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acquisition |
occurs when one business takes control of another business by purchasing a controlling interest in it |
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business life cycle |
the stages of growth and development a business can experience |
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realisation |
the process of converting the assets of business into cash |
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liquidation |
occurs when an independently and suitably qualified person, the liquidator, is appointed to take control of a business with the intentions of selling all the company's assets in an orderly and fair way in order to pay the creditors |
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cash flow |
the money coming into the business in the form of cash receipts, and the money leaving the business as cash payments |
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involuntary cessation |
occurs when the owner is forced to cease trading by the creditors of the business |
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voluntary administration |
when an independent administrator is appointed to operate the business in hopes of trading out the present financial problems |
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vertical intergration |
when a business expands at a different but related levels of production and marketing of a product. i.e merging with suppliers |
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creditors |
those people or business who are owed money |
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recievership |
where a business has a reciever take charge of the affairs of the business, unlike liquidation, the business may not necessarily be wound up.
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merger |
occurs when the owners of two separate business agree to combine their resources and create a new orgaisation |
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business (corporate) culture |
refers to the ideas, beliefs, expectations and values of shared by members of the organisation |
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market concentration |
the number of competitors in a particular market |
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globalisation |
the process that sees people, goods, money and ideas moving around the globe faster and more cheaply then before. |
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economic cycle |
the periods of growth(boom) and recession(bust) as a result of fluctuations in the general level of economic activity |
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goods and services tax(GST) |
a broad-based tax of 10 percent on the supply of most goods and services consumed in australia |
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support services |
the activities needed to assist the core operations or prime functions of a business |
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stakeholders |
any group or individual who has an interest in or is affected by the activities of a business |
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human resources |
the employees of a business and are generally its most important asset |
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regulations |
rules, laws or orders that businesses must follow
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monopoly |
complete concentration by one firm in the industry e.g. Australia post |
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complementary business |
one that sells a similar range of goods and services |
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financial resources |
the funds a business uses to meet its obligations to its creditors
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ecological sustainability |
when economic growth meets the needs of present population without endangering the ability of future generations to meet their needs |
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business enviroment |
the surrounding conditions in which a business operates. it can be divided into two broad categories: internal and external |
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deregulation |
the removal of government regulation from industry, with the aim of increasing efficiency and improving competition
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perfect competition |
when there is a large number of small firms that sell the same product. they are unableto differentiate products from each other and so can only use price as a way of achieving market share, e.g. fruit and veg growers |
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physical resources |
include equipment, building, machinery and raw materials. |
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internal enviroment |
those factors over which the business has some degree of control |
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oligopoly |
where a small number of larger firms have a greater control over a market, e.g. car manafacturers |
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sustainable competitive advantage |
the ability of a business to develop strategies that will ensure that it has an edge over competitors for a long period of time. |
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external environment |
those factors over which the business has very little control |
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monopolistic competition |
where there is a large number of buyers and sellers in a particular market, e.g. local retailing stores |
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information resources |
the knowledge and data required by the business, such as sales report, market research, legal advice, economic forecasts and technical material. |
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limited liability |
a feature of corporate ownership that limits each owners financial liability to the amount of money he or she has paid for the business shares |
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partnership |
a legal business structure which is owned and operated by between two and 20 people with the aim of making a profit |
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quinary industry |
all services that have traditionally been performed in the home |
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e-commerce |
the buying and selling of information and products via the internet |
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incorporated |
the process companies goes through to become a separate legal entity from the owner/s |
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proprietary (private) company |
an incorporated business and usually had between 20 and 50 private shareholders |
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float |
the raising of capital through the sales of company shares to the public |
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tertiary industry |
industry involved in performing a service for others |
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global business |
commonly referred to as a transnational company(TNC), is a large business with a home base in one country that operates partially or wholly owned companies in other countries |
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market share |
refers to a business's shares of the industry sales for a particular product |
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geographical spread |
the presence of a business and the range of its products across a suburb, city, state, country or the globe. |
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government enterprise |
government owned and operated businesses |
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venture capital |
money that is invested in small and sometimes struggling businesses that have the potential of becoming very succesful |
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unlimited liability |
occurs when the business owner is responsible for all the debts of his or her business |
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primary industry |
all those business in which production is directly associated with natural resources, e.g. farmers |
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privatisation |
the process of transferring a government owned business to the private sector. |
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incorporation |
the process a company goes through to become incorporated, i.e. to become a registered company and a separate legal entity |
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transnational(multinational) company |
a company that has branches in many different countries |
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quaternary industry |
includes the services that involve the transfer and processing of knowledge. e.g. banking |
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franchise |
buying the rights from another business to distribute its products under its name |
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prospectus |
a document giving details of a company and inviting the public to buy shares in it |
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micro business |
employs fewer than 5 people (including the owner) |
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sole trader |
a business that is owned and operated by only one person |
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industry |
consists of businesses involved in similar types of production |
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franchisee |
an individual or business that purchases a franchise |
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local business |
has a very restricted geographical spread; it serves the surrounding area |
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franchisor |
an individual or business that grants a franchise |
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national business |
one that operates in just one country |
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secondary industry |
involves taking a raw material and making it into a finished or semi-finished product. |
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business |
the organised efforts of individuals to produce and sell, for a profit, the products that satisfy individuals needs and wants. |
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revenue |
the money a business receives as payment for its products |
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innovation |
an improvement on something already established |
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shareholders |
people who are part owners of a company because they own a number of shares |
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finished product |
one that is ready for a customer to buy and use |
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risk |
the possibility of loss |
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quality of life |
the overall well-being of an individual and is a combination of both material and non-material benefits. |
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entrepreneurs |
someone who starts, operates and assumes the risk of a business venture in the hope of making a profit |
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research and development |
a set of activities undertaken to improve existing products, create new products and improve production |
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operating expenses |
all the costs of running a business except the cost of goods sold |
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income |
money received by a person for providing his or her labour, or a business from a return on its investments |
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product |
a good or service that can be bought or sold
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invention |
the development of something new |
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profit |
what remains after all business expenses have been deducted from sales revenue |
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wage |
money received by workers, usually on a weekly bass for services they provide to an employer. e.g casuals |
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choice |
the act of selecting among alternatives |
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goods |
items that can be seen or touched |
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salary |
a fixed amount paid on a regular basis, usually fortnightly or monthly, to a permanent employee of a business. |
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dividend |
part of a businesses profit that is divided among shareholders |
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production |
those activities undertaken by the business to create products that satisfy customers needs and wants |
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service |
things done for you by others |
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stages of a business life cycle |
establishment growth maturity post-maturity
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external influences in the business enviroment |
social institutional legal geographic economic markets political competitive situation technological financial |
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Internal influences in the business environment |
product management business culture location resource management
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classification of business |
Geographical spread- local, national, global Industry- primary, secondary, tertiary, quaternary, quinary Legal structure- sole trader, partnership, private company, public, company, government enterprise Size- small to medium enterprise, large
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factors influencing choice of legal structure |
size finance ownership
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role of business P.I.E.C.E. I.Q. W. |
Profit Quality of life Income Wealth creation Employment Choice Entrepreneurship and risk Innovation |