Markets in action
What is the term for the place where buyers and sellers interact?
A market.
Who collects taxes in Australia?
The government (through the Australian Taxation Office).
What is a start-up cost?
A one-time expense to establish a business, e.g., buying equipment, licences
What is competition in business?
When multiple businesses try to attract the same customers.
What is a business challenge?
A problem that could make it harder for a business to succeed, e.g., high costs, new competitors.
What is demand?
The amount of a good or service that consumers are willing and able to buy at different prices.
What percentage is GST in Australia, and what does it apply to?
10%, applies to most goods and services.
Give two examples of ongoing costs for a business.
Rent, wages, utilities, stock, insurance.
Why is it important to research nearby competitors?
To see what they offer and find ways to stand out.
Give one example of a major business decision.
Hiring staff, investing in new equipment, choosing a location.
What happens to demand when the price of a product increases (usually)?
Demand usually decreases.
Income tax is an amount taken out of an individuals income by the employer on behalf of the government.
How do you calculate a businesses profit?
Revenue (Income - Expenses = Profit).
What is a market gap?
A product or service that is missing in an area but is in demand.
What is a cost-benefit analysis?
Weighing the advantages and disadvantages of a decision to see if it is worthwhile.
Why does competition between businesses benefit consumers?
It often leads to lower prices, better quality, and more choice.
What does the government use tax revenue (income) for?
Roads, education, hospitals, infrastructure (new buildings, playgrounds, public transport).
Why is budgeting important for a business?
It helps manage income and expenses, plan for future costs, and avoid overspending.
Give one strategy a business can use to stay ahead of competition.
Better service, loyalty programs, lower prices, unique products.
Identify one financial challenge a business might face and how to overcome it.
Challenge: cash flow problems. Solution: creating a budget and reducing unnecessary expenses.
Explain how supply and demand can affect the price of sneakers.
If sneakers are popular (high demand) but there are limited pairs (low supply), the price will rise. If demand falls or supply increases, the price will drop.
How do businesses contribute to both the economy and society?
They create jobs, provide goods and services, pay taxes, and support communities.
Explain how paying taxes (e.g., GST, income tax, licensing fees) affects business decisions.
Taxes reduce profit (amount after expenses are paid), so businesses must plan to cover them and still make money.
Explain how a business in Lawnton could compete with businesses in Strathpine or North Lakes.
By offering unique, community-focused experiences not available in those areas.
Explain how being flexible and innovative helps a business survive long-term.
It allows businesses to adapt to new trends, customer needs, and challenges to stay competitive.