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Definitions - CHAPTER 3

Terms in this set (25)

Business environment
The business environment refers to the surrounding conditions in which the business operates. It can be divided into two broad categories: internal and external.
Internal environment
The internal environment, sometimes called the micro environment, includes those factors over which the business has some degree of control.
External environment
The external environment includes those factors over which the business has little control. It may be further divided into two categories: operating and macro.
Operating environment
The operating environment, sometimes called the task environment, refers to the specific outside stakeholders with whom the business interacts in conducting its business.
Macro environment
The macro environment is made up of the broad conditions and trends in the economy and society within which a business operates.
Business Activity Statement (BAS)
The business activity statement records a business's claims for input tax credits and accounts for GST payable.
Goods and Services Tax (GST)
The goods and services tax is a broad-based tax of 10 per cent on the supply of most goods and services consumed in Australia.
Workplace diversity
Workplace diversity refers to the multitude of individual differences that exist among people in the workplace.
Interest Rate
An interest rate is the price charged or paid for the use of money that has been deposited or borrowed.
Tax Rate
A tax rate is the percentage of income or the value of a good, service or asset paid as tax.
Technological issues
Technological issues refers to the issues relating to the growing use of tools, techniques or systems by businesses to solve problems or serve a purpose.
Globalisation
Globalisation is the effect of hi-tech communications, lower transport costs and unrestricted trade and financial flows turning the whole world into a single market, producing a more integrated global economic system.
Offshoring
Offshoring is the practise of moving some of a business's processes or services to the same or another business located overseas.
Exchange rate
An exchange rate is the price of one country's currency expressed in terms of another country's currency.
Corporate Social Responsibility
Corporate social responsibility refers to managing a business in such a way that the broader social welfare of the community, including its employees, customers, suppliers and the environment, is taken into consideration when making business decisions.
Triple Bottom Line
The triple bottom line refers to the economic, environmental and social performance of a business.
Customers
Customers are the people who purchase goods and services from a business, expecting high quality at competitive prices.
Competitors
Competitors are other businesses or individuals who offer rival, or competing, goods and services to the ones offered by the business.
Competitive advantage
Competitive advantage is the ability of a business to develop strategies that ensure it has an 'edge' over competitors.
Suppliers
Suppliers are those businesses or individuals that supply the materials and other resources that the business needs to conduct its operations.
Supply chain
A supply chain is the range of suppliers from which the business purchases materials and resources.
Special interest group
Special interest groups are the groups of people who attempt to directly influence or persuade a business to adopt particular policies or procedures.
Environmental lobby groups
Environmental lobby groups are special interest groups that promote environmental issues to the public, government and businesses.
Business Associations
Business associations are organisations that support businesses through the provision of training and education programs, advice and information
Unions
Unions are organisations formed by employees in an industry, trade or occupation to represent them in efforts to improve wages and working conditions.
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