Free HSC Year 11 Business Studies Flashcard Review
Review 20 public cards with spaced repetition. Flip a card, then grade your recall. Cards you miss return today. Your schedule stays in this browser.
Loading your review schedule…
Browse the free cards
What is a business?
An organisation that combines resources to produce goods or services that satisfy needs and wants, usually to earn a profit.
Give two features that distinguish a good from a service.
A good is tangible and can be stored, and ownership transfers to the buyer; a service is intangible and is produced and consumed at the same time.
State the formula for profit.
Profit = Revenue − Expenses.
Who receives the profit of a business, and why?
The owners, because profit is the reward for the money, time and risk they have put into the business after all other claims (wages, suppliers, interest, tax) are paid.
What is a loss?
The result when a business's expenses are greater than its revenue over a period.
What does 'adding value' mean?
Transforming inputs into outputs that customers are willing to pay more for than the inputs cost, through processing, design, branding, service or convenience.
How does business generate incomes beyond wages?
It pays interest to lenders, rent to landlords, dividends to shareholders and taxes to governments, all of which are then spent on other goods and services.
Why does competition between businesses benefit consumers?
It provides choice of product, price and service level, and forces businesses to improve quality and keep prices reasonable.
Define innovation in a business context.
Creating a new product, process or method, or significantly improving an existing one, to gain an advantage or cut costs.
What is an entrepreneur and what do they accept?
A person who spots an opportunity, organises resources and accepts the risk of loss in return for the chance of profit.
Name three groups for whom business creates wealth.
Owners (through profit and rising business value), employees (through wages and savings) and the community (through taxes that fund public services).
How is quality of life different from income?
Quality of life is broader: it covers health, leisure, safety and the variety of goods and services available, not just how much money people earn.
Employee bands for micro, small, medium and large businesses (ABS)
Micro: fewer than 5; small: 5 to 19; medium: 20 to 199; large: 200 or more.
What does SME stand for and which sizes does it cover?
Small to medium enterprise; businesses with 5 to 199 employees (micro businesses are often included too).
Three categories of geographic scope
Local (one town or region), national (across the country) and global (operating in several countries).
Primary sector
Extracts or harvests natural resources: mining, farming, fishing, forestry.
Secondary sector
Transforms raw materials into finished or semi-finished goods: manufacturing, construction, food processing.
Difference between tertiary, quaternary and quinary sectors
Tertiary: general services such as retail and transport. Quaternary: information and knowledge services such as IT and finance. Quinary: domestic-type services such as childcare, aged care and hospitality.
Liability of a sole trader
Unlimited: the owner's personal assets can be used to pay business debts.
What does 'joint and several liability' mean for partners?
Each partner can be held responsible for the entire debt of the partnership, not just their own share.