Free VCE Year 11 Business Management Flashcard Review
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Four roles businesses play in the economy
Creating employment, producing goods and services, driving innovation, generating wealth.
Difference between a good and a service
A good is a tangible item (a bicycle); a service is an intangible action performed for a customer (a haircut).
Five ways business ideas are generated
Personal interests and skills; listening to customers; spotting gaps in the market; market research; responding to technological change.
Six sources of business opportunity
Innovation, global markets, changing customer needs, technological developments, research and development, market opportunities.
Purpose of business concept development
To test and refine an idea (prototype, customer feedback, cost estimates) before committing money to a launch, reducing risk.
Four key characteristics of entrepreneurs
Risk-taking, resilience, creativity and drive.
What does a patent protect?
A new invention, device or process; registered with IP Australia and gives exclusive rights for a limited period.
What does a trademark protect?
A brand identifier such as a name, logo or slogan that distinguishes a business's goods or services.
What does copyright protect, and is registration needed?
Original creative works such as writing, music, software and film; in Australia it applies automatically with no registration.
What does a registered design protect?
The visual appearance of a product (shape, pattern, ornamentation), not how it works.
Three dimensions of feasibility
Commercial (market and competition), financial (capital and covering costs), ethical (operating without harm and meeting community expectations).
Break-even formula
Break-even units = fixed costs ÷ contribution per unit, where contribution = selling price − variable cost per unit.
Which business environment can the owner directly control?
The internal environment: legal structure, business model, location, finance, staff, resources and culture.
Name the four main groups in the operating environment.
Customers, suppliers, competitors and special interest groups.
How does the macro environment shape business planning?
Its forces (laws, economy, technology, society, global events) cannot be controlled, so the owner must adapt internal decisions such as finance, location and model to suit them.
Main disadvantage of a sole trader structure?
Unlimited liability: the owner's personal assets can be used to pay business debts.
Key difference between a private limited company and a public listed company?
A Pty Ltd company has up to 50 private shareholders and cannot sell shares to the public; a Ltd company sells shares to the public on a stock exchange.
What is a social enterprise?
A business that trades to fund a social or environmental mission, reinvesting most profit into that purpose rather than distributing it to owners.
Five factors influencing choice of legal structure?
Liability, control, cost of set-up, taxation and access to finance.
Two costs a franchisee must pay?
An upfront franchise fee and ongoing royalties (usually a percentage of sales) to the franchisor.