Nature of Business
People who are part owners of a company because they own a number of shares.
What is a Shareholder?
A broad set of activities involved in searching for, identifying and then implementing a course of action to correct an unworkable situation.
What is problem solving?
Occurs when a nation increases the real value of goods and services over a period of time.
What is economic growth?
Calculate the cost of goods sold (COGS), given the following information: $Sales 700 000, Stock (opening) 100 000, Purchases of stock 400 000, Closing stock 50 000.
COGS = Opening stock + Purchases – Closing stock
100 000 + 400 000 – 50 000 = $360 000
Dynamic action and forward planning to achieve particular objectives.
What is proactive?
Defined by the ABS as firms with fewer than 200 full-time equivalent employees and/or less than $10 million turnover.
What are small to medium enterprises?
Refers to the economic, social and environmental performance of a business.
What is the triple bottom line?
The ‘travel itinerary’ for future growth and development within a business. It sets out the desired goals and direction of the business.
What is a business plan?
Assets = $342 000, Owner’s equity = $152 000, Liabilities = ?
Assets = $342 000, Owner’s equity = $152 000, Liabilities = $190 000
Liabilities = Assets – Owner’s equity
= $342 000 – $152 000
Liabilities = $190 000
(Japanese for ‘improvement’)
What is Kaizen?
A feature of corporate ownership that limits each owner's financial liability to the amount of money he or she has paid for the business's shares.
What is limited liability?
Consists of all the activities in which managers engage to produce a good or service.
What is operations management?
Used to determine the level of sales that needs to be generated to cover the total cost of production.
What is break-even analysis?
The term given to the revenue less cost of goods sold (COGS).
What is gross profit?
The difference between the gross profit and operating and non-operating expenses.
What is net profit?
Money that is invested in small and sometimes struggling businesses that have the potential to become very successful.
What is venture capital?
Involves the use of a system so that a business achieves set standards in production.
What is quality assurance?
The process of changing existing plans, using updated information to shape future plans.
What is modifying?
The funds contributed by the owner(s) to establish and build the business. It is also called ‘capital’.
What is owner’s equity?
Occurs when a person’s job no longer exists, usually due to technological changes, an organisational restructure or a merger or acquisition.
What is redundancy?
When the owner is forced to cease trading by the creditors if the business.
What is involuntary cessation?
Collective agreements made at a workplace level between an employer and a union, acting on behalf of its employees, or between the employer and a group of employees, about terms and conditions of employment.
What is enterprise agreements?
A long-term source of borrowing for businesses. It involves the payment of money for the use of equipment that is owned by another party.
What is leasing?
Unanticipated events that can lead to financial difficulty. For a business to be well managed, it needs to have saved money for such events.
What are contingencies?
Refers to businesses sharing information with and seeking input from stakeholders, and involving them in decision making.
What is stakeholder engagement?