| A | B |
|---|
| franchising | a process whereby the right to sell a product or service is bought by a business through a formal agreement with conditions on the operation of the business |
| independence | ability to manage and control with minimal external interference |
| interdependence | a situation in which there is a complex web of internal relationships and decision-making procedures |
| market share | a proportion of the market, often expressed in total sales revenue or as a percentage, held by a business |
| micro business | a small business which employs fewer than five people |
| organisation | a group of people coming together for a defined purpose, for profit or not for profit |
| profit | a typical objective of business where revenue received is in excess to costs |
| interest groups | groups who attempt to influence the decisions that governments make and/or directly affect particular activities of businesses because of particular views they hold |
| internal environment | factors inside the business such as staff, policies and levels of technology. |
| macro environment | the general and broad environment consisting of several factors that impact on all businesses |
| open system | when an organisation, such as a business, is influenced by a range of factors external to it |
| operating environment | the environment immediately external to a business consisting of factors with which it interacts |
| ethical and socially responsible management | the values and standards that guide the behaviour of owners managers and employees |
| shareholder | the owner(s) of a business who has a direct financial interest in that business |
| stakeholder | one of several individuals or groups who have an interest in the business |
| entrepreneurship | the ability to seize an opportunity that is often innovative and make it commercially successful |
| innovation | the development of a business concept or process that is creative, different and relatively new |
| market research | investigation undertaken that provides information on various aspects of the market for a given product or service. |
| segment | a clearly identifiable section of a market noted by certain characteristics and features |
| traits | key characteristics of an individual's personality that indicate a potential for success in small business |
| beneficiary | a person nominated in a trust deed who directly gains benefit from the operation of a trust |
| franchise | a business arrangement where the licence to operate a business is given by the owner (franchisor) to another party (franchisee) |
| goodwill | a monetary value placed on the value of customers that is incorporated into the sale price to be paid by a purchaser |
| income-splitting | the process of separating the income earned by a small business into portions for each of the legal partners in that business, usually to reduce the overall tax paid |
| legal entity | legal recognition that something exists in its own right separate from other things; in business there is separation between the owners of a company and the company itself |
| limited liability | under this condition an individual or group is not personally responsible for the debts of the business; the business exists separately from its owners; this applies to all companies |
| partnership | a form of business ownership with 2 to 20 owners who make an agreement about their shared responsibilities; there is no limit to the liability of the partners for the debts of the business |
| private company | a form of ownership that is has an existence separate from the owners, who each have shares in the business |
| progressive tax scale | this results in a person or business paying more tax at a higher marginal rate, as more income is earned |
| sole proprietorship | a form of business ownership where there is one owner; the owner also manages the business; also known as "sole proprietorship" |
| trust | a form of business ownership where a settlement is made and the business operates for the benefit of others as nominated in a trust deed |
| unlimited liability | under this condition an individual or group is personally responsible for the debts of the business; therefore, assets accumulated privately can be sold to finance debt; this applies to most sole traders and partnerships |
| demographics | characteristics of a given population related to age, sex and ethnicity |
| location | the physical position of a business within a city, region, shire or suburb determined by the consideration of several key factors; considered essential to small business success |
| passing traffic | a phrase used to describe people who pass by a business premises and can be attracted to entering it |
| site | the physical or cyperspace premises of a business |
| zoning | government specification for how a certain area or suburb, region or town can be used in relation to residential, commercial and industrial activity |
| formal networks | interaction, support and communication between business operators that occurs within organised structures |
| informal networks | interaction, support and communication between business operators that occurs on a casual basis |
| professional associations | formal networks established specifically for the mutual benefit of members of a particular profession |
| bridging loan | short term finance that enables a lender to purchase a substantial asset while waiting on the sale of another; frequently used when moving from one business to another |
| cash flow budget | a financial projection, usually for the next 12 months, of all the cash coming in and out of the business |
| collateral | the security given by a borrower to a lending institution for the provision of finance; it is usually in the form of a substantial personal or business asset |
| establishment costs | the total cost involved in getting a small business operation up and running; they will include fixed equipment, startup and operating costs |
| fixed equipment | items of a permanent nature required by a business (eg. a motor vehicle), which cannot be easily converted into cash |
| operating costs | costs incurred as part of the day-to-day running of the business; they include items such as wages, electricity, rent and insurance |
| overdraft | a form of short-term credit in which funds are made available through a capacity to draw funds from a cheque account up to a certain limit |
| sources of finance | places or people that can provide funds for a business, usually at some cost or charge |
| start up costs | once-only costs that occur at the commencement of a small business; they include such profit or loss items as telephone connection fees an initial stock purchases |
| term loan | medium to long term credit for substantial business use, which operates with a fixed repayment plan and loan conditions |
| trade credit | short term credit offered by some suppliers to their business customers, which allows them a certain number of days to settle the cost of purchases made. |
| advertising | the part of the marketing process that draws the public's attention to the product or service sold; it can involve the use of a rance of media |
| four Ps | a term used to refer to the four key elements of the marketing mix: price, product place and promotion |
| marketing | activities related to positioning a product or service before a consumer with the intention to get them to purchase |
| marketing mix | the way in which the four elements of marketing are combined in a marketing strategy |
| marketing plan | a strategy drawn up to show how the business will use each of the elements of the marketing mix; it could be part of a larger business plan |
| place | one of the four Ps of the marketing mix' the point where the sale or exchange between a business and the consumer occurs; it involves the process of distributing the product or service |
| price | one of the four Ps of the marketing mix; this sets the amount charged for a product or service taking into accounti a range of factors including competitors, cost and demand |
| product | one of the four Ps of the marketing mix; the good or service offered for sale and its features |
| balance sheet | a report listing assets, liabilities and owners quit of a business in such a way that tit can be seen that the value of the assets = liabilities + owners equity |
| benchmarking | the comparison of the performance of a business (or particular function of a business) against a chosen standard |
| capital | items of value contributed by the owner to the business, such as cash or personal resources such as a computer |
| cash flow | money moving in and out of the business no matter what its source or use |
| cash flow crisis | a situation where there is a shortage of cash needed to pay bills that are due |
| cost of goods sold | the cost to the business of goods that have been sold; this can include not only the cost of the good itself but also any costs in preparing it for sale (such as delivery to the store) |
| debtors | those whom invoices have been sent for goods and services supplied, which remain unpaid |
| drawings | items of value withdrawn from the business by the owner,. such as cash or other assets |
| overdraft | a facility allowing the holder of a cheque account to overdraw the account to an agreed limit for an agreed time and at an agreed interest rate. |
| productivity | output per unit of input |
| profit | revenue (earnings of the business) less expenses (cost of whatever is used up in earning revenue) measured over a period of time |
| profit and loss statement | a report listing revenue earned and expenses incurred for a particular period and showing the resulting profit or loss |
| acts | a binding law identifying a particular area of jurisdiction |
| award | a legally binding agreement that sets minimum conditions of employment for a whole industry or occupation |
| contract | a written or verbal agreement between two parties, enforceable by law |
| equal employment | a recognition of the right sof individuals in relation to their employment, often incorporated or contract into legislation |
| fair work | the employee relations law introduced by the Rudd Labour Government that covers pay and conditions for Australian workplaces |
| proactive practices | action taken that anticipates a need |
| self regulation | the process of an industry establishing its own codes of behaviour fro business activities as a means of regulation other that through legislation |
| workplace agreement | a legally binding agreement between an individual or group and an employer in relation to conditions of employment at a particular workplace |
| zones | areas within a suburb, town or shire designated for certain purposes such as residential or commercial |
| Victorian Worksafe Authority | manager of Victoria's workplace safety system, including prevention strategies, enforcement of OH&S Laws, and management of insurance and compensation. |
| national employment standards | sets out the minimum conditions of employment |
| job description | a statement of duties, conditions and benefits of a job |
| Enterprise Agreement | a workplace agreement covering wages and conditions that can be made directly between an employer and a group of employees or union/s |
