Ch 11
Rivalry among business that seek to satisfy a market
Competition
The monetary value attached to the reputation of a particular business
Goodwill
Involves buying the rights from another business to distribute its products under its name
Franchise
An Individual or business that grants a franchise
Franchisor
An individual or business that purchases a franchise
Franchisee
Involves collecting, collecting, summarizing and analyzing information about the state of the market, customers, the threats and opportunities that the market presents, and any advantages or disadvantages that the business is likely to have over its competitors.
Market Analysis
A means by which local councils allocate land for different uses, such as residential, commercial, recreational and industrial.
Zoning
Relates to the short-term and long-term borrowing from external sources by a business.
Debt finance
The bank allows a business to overdraw their account up to an agreed limit for a specified time, to overcome a temporary cash shortfall.
Overdraft
A loan secured on some type of asset.
Mortgage
The funds contributed by the business owner(s) to start and then expand the business.
Equity finance
The cost of borrowing money.
Interest
What is the law that protects both consumers and businesses. It protects consumers from deceptive or misleading practices, and it regulates the trade practices of businesses.
The Competition and Consumer Act 2010 (Cwth)
What is payments for non-wage benefits.
On-costs
What is a scheme set up by the federal government. It requires all employers to make a financial contribution to a fund that employees can access when they leave or retire from a job. The percentage an employer must contribute will increase gradually to 12% by 2023
Superannuation
What is a compulsory payment of a proportion of earnings to the government.
Taxation
What is a broad-based tax of 10% on the supply of most goods and services consumed in Australia.
Goods and Services Tax (GST)
What is an allowable tax deduction that a business can claim for any GST included in the price of business inputs.
Input tax credit
What is records of a business's claim for input tax credits and accounts for GST payable.
Business Activity Statement (BAS)
What is a single identifying number that a business uses when dealing with government departments and agencies.
Australian Business Number (ABN)