42 terms

VCE Business Management Study Area 2

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Terms in this set (...)

proprietorship
the ownership of an unincorporated business
sole trader
individual owner of a registered business
unlimited liability
applicable to sole traders and partnerships; these business owners are fully liable (to the extent of their personal assets) if the business fails
partnership
a legal form of business organisation where two or more people (partners) work together
passive investors
often referred to as 'silent partners', they provide financial input into the business but do not actively participate in the business operations
partnership agreement
formally outlines
the duties and responsibilities of the parties to a partnership
redundant
an employee is redundant when there is no longer sufficient work for the worker to perform
company
separate legal entity (incorporated body) that is subject to the requirements of the Corporations Act 2001 (Commonwealth); owned by shareholders whose liability is limited to the extent of their shareholding in the company; it can sue and be sued in its own right and is run by directors, registered officers
and its owners; it has perpetual succession
shareholder
part-owner of a company
limited liability
shareholders are only personally liable to the level of their original investment in an organisation
private company
a company where the shareholding is limited (small), with shares being sold privately; often run as a family business; has the words 'Proprietary Limited' at the end of the company name
prospectus
an invitation to the public and potential investors to purchase shares in a
particular company
registered business name (RBN)
trading name under which a person (sole trader) or partnership conducts its business or trade, e.g. Roxy Café; name requires renewal every three years
Australian Company Number (ACN)
nine-digit identifier of a company
support services
services (paid or unpaid) used by businesses to assist them in their decision making, e.g. legal or financial advice or daily operational activities
state product
a measurement of the value of production by businesses in a state in a given period of time
network
an interconnected system of people or businesses
complementary business
a business whose activities complement those of another business
transition period
a period of time when the previous business owner works with
the new owner to introduce them to business operations, clients/customers, suppliers and other business contacts
ISO
International Standards - certification
Entrepreneur
a person willing to combine risk taking with their own knowledge and skills to make a profit
Gap in the market
an opportunity for a business to enter into an area of the market not currently being serviced
Innovation
introduction of new things or methods. Improving current work practices, procedures and products
Intellectual property
invention, trademark or an original design
Market research
systematic approach used to assist in making decision about consumers and the marketplace
viable
capable of developing and growing
Feasibility study
initial research required to determine whether the business is potentially viable
Franchise
a business that is based upon the purchase of a franchise licence from a franchisor
Goodwill
the difference in value between the price a business is sold for and its net asset value
Accountability
the extent to which a worker is held answerable to supervisors or managers for their work actions or performance
Trust
fund or property held or administered
Competitor
business rival in the same market
Industrial espionage
gaining valuable information on a competitors activities
Contract
a legal binding agreement
Franchising agreement
legal document that outlines the responsibilities of the franchisor and franchisee
Plan
outline of an approach to be taken
Procedures
series of steps
Business strategies
long-term plan of action to achieve goals and objectives
Executive summary
an overview of the key points of the business plan
mission statement
statement that reflects the purpose of the organisation and the way it will be managed
Compliance
meeting government and industry regulations and standards
Venture capitalist
an investor who provides capital