Consumer and Financial Decisions
What is the term for the amount of money left after all expenses have been paid?
Profit.
What is the purpose of advertising?
To inform or persuade customers to buy a product or service.
What is the most common type of business structure in Australia?
Sole trader.
What does GDP stand for?
Gross Domestic Product.
Which company is currently the most valuable in the world by market capitalization?
Apple (as of late 2024).
What is a warranty?
A guarantee provided by the seller to repair or replace a product within a specified period.
Name one method businesses use to collect customer feedback.
Surveys or questionnaires.
What is the term for the total revenue minus the total costs?
Net profit.
What is inflation?
The rate at which the general level of prices for goods and services rises over time.
What major retailer in Australia collapsed in 2023?
David Jones.
Name one consequence of not repaying a loan on time.
A lower credit score.
What is a target market?
A specific group of consumers that a business aims its products or services at.
Name one risk of starting a new business.
Financial loss.
What is one reason a country might trade with another country?
To access goods or services that it cannot produce efficiently itself.
What is the purpose of the ACCC in Australia?
To ensure fair competition and protect consumers from unfair practices.
What does the acronym ASIC stand for, and what does it regulate?
Australian Securities and Investments Commission; it regulates financial services and companies.
What does "branding" mean in marketing?
Creating a unique name, design, or symbol to identify a product or company.
What is a business plan, and why is it important
A document outlining a business’s goals, strategies, and financial projections; it helps guide decision-making.
What does the Reserve Bank of Australia (RBA) do?
It sets interest rates and manages the country's monetary policy.
What is "greenwashing" in business?
When a company falsely markets its products as environmentally friendly.
What is the difference between fixed and variable interest rates?
Fixed rates stay the same over time, while variable rates change depending on market conditions.
What is "bait advertising," and is it legal in Australia?
Advertising a product at a low price but having limited stock; it is illegal under Australian Consumer Law
What is cash flow, and why is it important for a business?
The movement of money in and out of a business; it ensures the business can pay its bills and operate effectively.
What is the difference between a recession and a depression in economic terms?
A recession is a temporary economic decline, while a depression is a severe and prolonged economic downturn.
What global financial issue has impacted Australia in 2024?
Rising interest rates and inflation.