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Business Management Unit 1 AOS3 Internal Environment

Terms in this set (50)

Resources
people and objects that are needed for the business to function properly
Natural resources
items used by the business that come from the natural environment. These include land, water, raw materials etc
Labour resources
the people that provide their skills, effort and knowledge to the business
Capital resources
the tools and machinery that are used to produce goods or perform services
Zoning
a means by which local councils allocate land for different uses, such as residential, commercial, recreational and industrial
Complementary businesses
offer products or services that are the related to a different business and that may be of use to the customers of that business
Equity
funds contributed by the owner(s) of a business to commence and build the business
Debt
funds provided by sources outside the business, which must be paid back over time, with interest
Working capital
funds available for the short-term financial commitments of a business
Bank overdraft
the bank allows a business or individual to overdraw their account up to an agreed limit for a specified time, to help overcome a temporary cash shortfall
Mortgage
a loan secured by the property of the borrower (the business)
Leasing
is a way of financing the purchase of assets without a large initial capital outlay
Leesee
the person or business to whom a lease is granted
Lessor
owner of an asset that is leased under an agreement to the lessee
Terms of finance
the amount of the repayments and frequency at which they must be made
Goodwill
the monetary value attached to the reputation of a particular business
Franchise
when a business sells to others the rights to distribute its products under its name
Business entity
any organisation engaged in the production of goods and services
Incorporated
describes a business that has a separate legal entity from the owner/s
Sole trader
a business owned and operated by one person
Unlimited liability
when the business owner is personally responsible for all the debts of his or her business
Partnership
an unincorporated business structure with a minimum of two and a maximum of 20 owners
A silent or sleeping partner
one who contributes financially to the business but takes no part in the running of the partnership
Incorporation
the process that a business goes through to become a registered company and a separate legal entity
Shareholders
the owners of a company who are entitled to a share of its profits
Limited liability
when the shareholders of a company cannot be held personally responsible for the debts of that business
A proprietary (private) company
an incorporated business with a minimum of two, and a maximum of 50 private shareholders
Prospectus
a legal document that provides the public details about investment in the company
Business model
a plan that outlines how the business will run its operations to generate a profit
Bricks and mortar
traditional business model that is based around a store with a physical presence, such as those located on shopping strips and in shopping centres
Bricks and clicks
the business model that offers customers the choice of online shopping as well as the option to purchase goods at their physical store location
Retailer
business that operates by selling goods and services to the end customer at a price higher than the cost to produce or purchase the goods in bulk
Wholesaler
a business that sells a large volume of goods to retailers
Manufacturer
a business which produces physical goods, often in a factory setting
Imports
goods and services that are produced overseas and sold to Australian consumers
Exports
goods and services that are produced in Australia to be sold abroad
Franchise agreement
an agreement whereby the franchisor grants the franchisee the rights to use its business name and distribute its products or services
Franchisor
the owner of the original business concept that licenses another business to use its name and distribute its products or services in exchange for royalty payments and fees
Franchisee
a business that is licensed to operate under the name of an existing business and distribute its products or services
Social enterprise
a business model that aims to improve the well-being of others through its business activities
Crowd funding
a method of raising finance through appeals for small donations to a large number of people via social media and the internet
Accountant
a professional who provides advice on all financial management issues and taxation obligations
Solicitor
a professional who provides advice on legal matters such as business formation, registration, contracts and legislation
Business plan
written statement of the goals and objectives for the business, and the steps to be taken to achieve them
Planning
a process or series of actions to achieve an objective
Stakeholder
any group or individual who has an interest in, or is affected by, the activities of a business
Boycott
when a customer refuses to purchase goods or services from a business as a form of protest against the undesirable activities of the business
Recruitment
the process of attracting qualified job applicants from which to select the most appropriate person for a specific job
Staff morale
the general level of satisfaction and wellbeing of employees
Employee retention
the ability of a business to keep employees
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