Ch 11
Competition
Rivalry among business that seek to satisfy a market
Goodwill
The monetary value attached to the reputation of a particular business
Franchise
Involves buying the rights from another business to distribute its products under its name
Franchisor
An Individual or business that grants a franchise
Franchisee
An individual or business that purchases a franchise
Market Analysis
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.
Zoning
A means by which local councils allocate land for different uses, such as residential, commercial, recreational and industrial.
Debt finance
Relates to the short-term and long-term borrowing from external sources by a business.
Overdraft
The bank allows a business to overdraw their account up to an agreed limit for a specified time, to overcome a temporary cash shortfall.
Mortgage
A loan secured on some type of asset.
Equity finance
The funds contributed by the business owner(s) to start and then expand the business.
Interest
The cost of borrowing money.
The Competition and Consumer Act 2010 (Cwlth)
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.
On-Costs
What is Payments for non-wage benefits.
Superannuation
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
Taxation
What is a compulsory payment of a proportion of earnings to he government.
Goods and Services Tax (GST)
What is a broad-based tax of 10% on the supply of most goods and services consumed in Australia.
Input Tax Credit
What is an allowable tax deduction that a business can claim for any GST included in the price of business inputs.
Business Activity Statement (BAS)
What is records of a business's claim for input tax credits and accounts for GST payable.
Australian Business Number (ABN)
What is a single identifying number that a business uses when dealing with government departments and agencies.