The Role Of Business
The organised effort of individuals to produce and sell for a the products that satisfy individual's needs and wants
Business
This type of business that has a very restricted geographical spread. It serves the surrounding area.
A local business ?
The periods of growth and recession that occur as a result of fluctuations in the level of economic activity.
The economic cycle ?
Establishment, growth, maturity and post maturity
The business life cycle?
A business that has fewer than 5 employees plus the owner
A micro business ?
Influences on a business are divided into 2 main categories - what are they?
Internal and external
Something that is ready for customers to buy and use
A finished product ?
A large business with a home base in one country that operates partially owned or wholly owned businesses in other countries
What is a global business
Australia's geographic location and the process of globalisation
Social influences on business ?
This occurs when there is a lack of sufficient funds to operate a business normally
Undercapitalisation ?
Gross domestic product, employment and balance of payments
Contribution to the economy ?
What is the difference between businesses from the quaternary & quinary sectors.
Quaternary: financial & information services (Teaching, computing, property, finance) Quinary: originally home based services (Health, child care, hospitality, arts & culture)
The activities undertaken by the business that combines the resources to create products that satisfy customers' needs and wants
Production
Those businesses in which production is directly associated with natural resources
Primary industry
The NSW consumer protection agency
The Office of Fair Trading ?
What are the FOUR stages of the business life cycle?
Establishment, growth, maturity, post maturity
Entrepreneurial abilities, access to information, flexibility, focus on market niche, reputation
Success factors for SMEs ?
Define monopolistic and perfect competition
Monopolistic competition: large number of sellers who differentiate through branding
Perfect competition: large number of sellers whose products are similar; little advertising; only real difference is price (& quality)
Profit, employment, choice, incomes , innovation, entrepreneur
The roles of business for the economy and society ?
Those businesses that involve the transfer and processing if information and knowledge
A quaternary industry ?
The complete concentration by one firm in the industry eg. Australia Post
A monopoly ?
A situation where a person takes charge of the affairs of the business.
A receivership ?
Setting up a new business from scratch or purchasing an exiting business
Establishment options for going into a business
Identify the big change in financial markets in Australia in the 1980s. What was the result for consumers?
Deregulation - more competitors (such as Aussie Home Loans) meaning better deals for customers.
Someone who starts, operates and assumes the risk of a business venture in the hope of making a profit
An entrepreneur ?
The processes companies go through to become a separate legal entity from the owners
Incorporation ?
The ability of a business to develop strategies that will ensure that it has an edge over its competitors for a long period of time
A competitive advantage ?
A declaration that a business or person is unable to pay his or her debts
Bankruptcy ?
Bearing the rights from another business to distribute its products under its name
A franchise ?
What are the 5 factors must be considered when selecting a location.
1. Visibility 2. Cost 3. Proximity to support services 4. Proximity to customers 5. Proximity to suppliers