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Ch 4 Planning a business — internal business

Terms in this set (52)

Resources
are the people and objects that are needed for the business to function properly.
Natural resources
are items used by the business that come from the natural environment. These include land, water, raw materials etc.
Labour resources
refer to the people that provide their skills, effort and knowledge to the business.
Capital resources
refer to the tools and machinery that are used to produce goods or perform services.
A subcontractor
is a person that is not directly employed by the business but has been contracted to preform certain tasks.
Zoning
is a means by which local councils allocate land for different uses, such as residential, commercial, recreational and industrial.
Search Engine Optimisation (SEO)
refers to the strategies used to increase the number of visitors to a website by making it more visible on search engines such as Google.
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
is the funds contributed by the owner(s) of a business to commence and build the business.
Debt
is the funds provided by sources outside the business, which must be paid back over time, with interest.
Working capital
is short-term financing, typically with 1 to 2 years.
A bank overdraft
is when 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.
A mortgage
is a loan that is borrowed against the property of the business or owner.
Leasing
involves paying money to use equipment or space that is owned by another party.
The lessee
is the person or business to whom a lease is granted.
A lessor
is the owner of an asset that is leased under an agreement to the lessee.
The terms of finance
refers to the amount of the repayments and frequency at which they must be made.
Goodwill
is the monetary value attached to the reputation of a particular business.
A franchise
is when a business sells to others the rights to distribute its products under its name.
A business entity
is any organisation engaged in the production of goods and services.
Incorporated
describes a business that has a separate legal entity from the owner/s.
A sole trader
is a business owned and operated by one person.
Unlimited liability
is when the business owner is personally responsible for all the debts of his or her business
Partnership
is an unincorporated business structure with a minimum of two and a maximum of 20 owners
A silent or sleeping partner
is one who contributes financially to the business but takes no part in the running of the partnership.
Incorporation
is the process that a business goes through to become a registered company and a separate legal entity.
Shareholders
are the owners of a company who are entitled to a share of its profits.
Limited liability
is when the shareholders of a company cannot be held personally responsible for the debts of that business.
A proprietary (private) company
is an incorporated business with a minimum of two, and a maximum of 50 private shareholders.
A prospectus
is a legal document that provides the public details about investment in the company.
A business model
is a plan that outlines how the business will run its operations to generate a profit.
Bricks and mortar
refers to the 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
refers to the business model that offers customers the choice of online shopping as well as the option to purchase goods at their physical store location.
A retailer
is a 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.
A wholesaler
is a business that sells a large volume of goods to retailers.
A manufacturer
is a business which produces physical goods, often in a factory setting.
Imports
are goods and services that are produced overseas and sold to Australian consumers.
Exports
are goods and services that are produced in Australia to be sold abroad.
A franchise agreement
is an agreement whereby the franchisor grants the franchisee the rights to use its business name and distribute its products or services.
A franchisor
is 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.
A franchisee
is a business that is licensed to operate under the name of an existing business and distribute its products or services.
A social enterprise
is a business model that aims to improve the well-being of others through its business activities.
Crowd funding
is a method of raising finance through appeals for small donations to a large number of people via social media and the internet.
An accountant
is a professional who provides advice on all financial management issues and taxation obligations.
A solicitor
is a professional who provides advice on legal matters such as business formation, registration, contracts and legislation.
A business plan
is a written statement of the goals and objectives for the business, and the steps to be taken to achieve them.
Planning
is a process or series of actions to achieve an objective.
A stakeholder
is any group or individual who has an interest in, or is affected by, the activities of a business.
A boycott
is 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
is the process of attracting qualified job applicants from which to select the most appropriate person for a specific job.
Staff morale
is the general level of satisfaction and wellbeing of employees.
Employee retention
is the ability of a business to keep employees.
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