Business
A business owned and operated by one person
Sole Trader (sole proprietor)
someone who takes on the risk of starting their own business and uses initiative to achieve success.
Entrepreneur
What does ACCC stand for?
Australian Competition and Consumer Commission
Why do we pay tax?
The taxes we pay goes towards funding government services such as hospitals/health services, schools, roads, emergency services
Why should we save money regularly?
helps people prepare for emergencies, reach financial goals, and avoid debt.
List two reasons or goals as to why a business exists
1. To make a profit (financial return).
2. To provide goods or services that people need or want.
3. Sometimes, to support a cause (social enterprises).
Describe two characteristics of successful entrepreneurs
1. willing to take risks
2. strong work ethic
3. resilience/bounce back from failures
What does the Competition and Consumer Act 2010 (Cth) cover?
Sets out rules that consumers and businesses must follow when buying and selling products
Who decides how tax money is spent?
The government determines how the taxpayer's money collected will be spent.
a plan for managing income and expenses
budget
Disputes, shared liability/profits are disadvantages of what type of business structure
Partnership
What is the term for a business that is constantly finding new ways to stay ahead of their competition?
competitive advantage
What does the term social responsibility (also known as corporate social responsibility) mean for businesses
Considering the impact of the business on the community and environment Eg: environmentally friendly practices such as recycling, reducing waste
Total revenue minus total expenses equals ........
profit
a sum of money that is owed or due to be paid
debt
What type of decision making is decisions that are guided by moral principles and values, such as honesty, fairness, and integrity, rather than solely by profit.
ethical decision making
Entrepreneurs consider demographics/behaviours factors to determine the target market for their product. Name two factors that may be considered
Age, location, spending power, interests, stage of life
Provide one example of a consumer right
Consumer rights are legal protections that ensure fair treatment when buying goods or services.
Example: The right to a refund if a product is faulty
What does the term innovation mean when it comes to business success?
Innovation is the act of creating or starting something new and different. Innovators can improve on an existing idea or create something completely new from scratch.
What is a scam?
Scams are dishonest schemes to trick people out of money or information.
A goal-setting technique commonly used by both individuals and businesses is the S.M.A.R.T goal principle. What does S.M.A.R.T. stand for?
S.M.A.R.T goals are goals that are specific, measurable, achievable, relevant and time-bound.
What type of SMART goal might an entrepreneur set for their business as they are starting up?
Profit/profitability: targets to increase profits by a certain % or $ value for a certain period
What is one responsibility of a business when selling products to consumers?
Ensure products are safe and meet standards
List the first two steps to achieving financial goals
1. Set clear MONEY goals (using SMART goal)
2. Create (and Stick to) a simple Budget tracking money coming in and going out
How can we protect ourselves from scams?
1. Be cautious of offers that seem too good to be true
2. erify websites before entering details
3. Never give bank details or card details over the phone