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Definition
| Is a business person who develops the idea, organises the input of the business and takes risks associated with running the business. |
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Term
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Definition
| The part of the economy not owned or controlled by the government. |
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Term
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Definition
| Is the part of the economy that is owned an controlled by the government. |
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Definition
| These items are essential for life |
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Term
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Definition
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Term
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Definition
| A spending plan showing an individuals or a businesses expenditures and income over a certain amount of time. |
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Term
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Definition
| The physical and mental effort provided by people in the process of producing goods and services |
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Term
| Shareholders rights include... ? |
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Definition
Voting Power on major issues.
Ownership in a portion of the company.
The right to transfer ownership.
An entitlement to dividends.
Oppurtunity to inspect corporate records and books.
The right to sue for wrongful acts. |
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Term
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Definition
| A class of capital stock that is issued by a split investment company or a dual purpose mutual fund |
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Term
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Definition
| shares in large well established companies that have historically shown ability to pay dividends in uncertain markets. |
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Term
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Definition
| Shares in a company whose earnings are expected to grow at an above average rate relative to the market |
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Term
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Definition
| Shares that have a beta value of less than 1. |
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Term
| What are the two main functions of the stock market? |
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Definition
To facilitate a company raising funds by issuing securities (shares) to investors.
Investors are able to buy and sell shares on the stock market for a profit. |
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Term
| What is a secondary market (stock exchange)? |
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Definition
| Securities are first issued as a primary offering to the public. When the securities are traded from that first holder to another, the issues trade in these secondary markets. |
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Term
| What are consumers legal rights? |
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Definition
That a product is safe.
That a product has accurent information on the package.
That there is a full disclosure of price.
That any guarantees will be honoured. |
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Term
| An example of protective legislation? |
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Definition
| Trade Practices Act (1974) or the Fair Trading Act (1987) |
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Term
| Four protective organisations for consumers? |
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Definition
ASIC (Australian Securities and Invesments Commissions.)
The office of fair trading.
ACCC - The Australian Competition and Consumer Commission
(ACA) The Australian Consumers Association. |
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Term
| What are the seven payment options? |
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Definition
| Cash, credit, debit, lay-by, cheque, EFTPOS and book-up. |
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Term
| What are the four "Factors of Production"? |
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Definition
| Labour, Capital, Land, Entrepreneur. |
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Term
| What is the Primary Industry? |
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Definition
| The Primary industry is concerned with the production or extractions of natural resources |
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Term
| What is the Secondary Industry? |
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Definition
| The secondary industry covers manufacturing of the products once they come from the primary industry |
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Term
| What is the Tertiary Industry? |
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Definition
| The Tertiary industry-or as it is also known, the services sector |
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Term
| What is the Quaternary Industry? |
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Definition
| information processing, this sector includes education, computer software and financial software |
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Term
| What is the Quinary Industry? |
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Definition
| the provision of services such as home duties, restaurants and laundry. |
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Term
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Definition
| something is deposited as a guarantee to fulfil the payment of the loan. |
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Term
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Definition
| No guarantee is deposited. |
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Term
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Definition
| -These loans are taken out when purchasing a home or land. Under the terms of the loan, the bank may own the property as security. If you are unable to repay the loan, the lender can seel the property to get back what is owed. |
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Term
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Definition
| -are a form of loan, this allows people to spend money and pay it back later. Credit cards normally have a credit limit; that is a specified level to which the card holder is allowed to spend. If the outstanding amount is not paid by its due date, interest is paid on that balance. |
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Term
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Definition
| Credit rating is the level of suitability that someone obtains after a credit check, this rating is used to determine weather loans are cleared and how high credit card limits are set. Factors that affect a persons credit rating are whether you have had problems paying previous loans or have had late payments, your address and age and your employment details. |
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Term
| What are the two parties to every credit transaction? |
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Definition
| The Creditor and the Debtor |
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Term
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Definition
| A contract is a legal binding document hat contains an agreement between two people that can be enforced by law. |
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Term
| What are the three essential elements of a contract? |
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Definition
| The three essential elements of a contract are an offer, agreement and consideration. |
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Term
| What is the difference between the Trade Practices Act and the Fair Trading Act? |
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Definition
| The Fair trading act is acting state-wide whereas the trade practices act is a national one. |
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Term
| In what cases can a contract not be enforced? |
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Definition
| When, legally, the person to sign the contract is not an adult. |
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Term
| Name two ways in which the term "Business" is used? |
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Definition
| Private Sector enterprises and statutory authorities which have profit as a primary goal. |
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Term
| What is the act of making a business a legal entity? |
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Definition
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Term
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Definition
| A business owned and operated by one person |
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Term
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Definition
| A legal business structure that is owned and operated by between two and twenty people with aim of making a profit. |
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Term
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Definition
| A group of people who join for a particular purpose. Eh Building Societies and Credit Unions. |
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Term
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Definition
A licence to operate an individually owned business as if it were part of a chain of outlets or
stores. |
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Term
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Definition
| Through the process of incorporation this business structure is a separate entity from its owners (shareholders). |
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Term
| Define "Trust" (in terms of commerce) |
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Definition
| A relationship in which one person (the trustee) holds property (the trust property) on behalf of another (the beneficiary). |
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Term
| What is the difference between a current asset and a non-current asset? Provide two examples of each; |
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Definition
| A current asset is an asset that will be used within a year (cash, stock on hand), non-current assets will last for longer than a year (equipment, motor vehicles) |
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Term
| What does "Owners Equity" represent? |
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Definition
| the value of the business to the owner |
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Term
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Definition
| Assets = Liabilities + Owners Equity |
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Term
| What are the three sets of accounts recorded in a balance sheet? |
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Definition
| assets, liabilities, and Owners Equity, which is the value of the business to the owner. To calculate it, we subtract liabilities from assets. |
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Term
| What is another name for a "revenue statement"? |
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Definition
| A statement of financial performance |
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Term
| What is the difference between Bankruptcy and Insolvency? |
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Definition
| Bankruptcy applies to individuals, insolvency applies to companies. |
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Term
| What is the order in which things will be payed (Bankruptcy)? |
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Definition
1. Trustees.
2. Tax Office.
3. Secured Creditors.
4. Unsecured Creditors. |
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Term
| What is the order in which things will be payed (Insolvency)? |
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Definition
1. The receiver.
2. Wages and employee entitlements.
3. Tax.
4. Secured Creditors.
5. Unsecured creditors. |
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Term
| What is the main role of promotion? |
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Definition
| To inform, persuade and remind customers about a businesses' products. |
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Term
| What does promotion mix refer to? |
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Definition
| The various promotion strategies used by a business in a promotional campaign |
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Term
| What is meant by the term "caveat emptor" ? |
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Definition
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Term
| What rights do youhave under the door to door sales act? |
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Definition
| A 10 day cool off period in which no services or money may be accepted, a written contract and notice for cancelling of this contract for any goods or services over $50, the right to see identification, refuse entry and refuse to hear any sales pitch without explanation. |
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Term
| Describe what is meant by "bait and switch" advertising? |
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Definition
| An illegal advertising strategy in which the seller baits customers by an advertisement with a low-priced model of a product but then switches customers who seek to buy the product to a much higher-priced model by telling them that the cheaper model does not work well or is no longer in stock. |
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Term
| What hours are sales persons allowed to visit your home? |
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Definition
Mon-Fri 9:00 - 8:00
Saturdays 9:00 - 5:00
And they are not allowed to visit your home on Sundays or public holidays |
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Term
| What is the role of the CTTT? |
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Definition
| The role of the CTTT is to resolve disputes between tenants, landlords, traders and consumers in a timely and effective manner. |
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Term
| What is the role of the ASIC? |
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Definition
| ASIC is the consumer protection regulator for financial services. In this role, they protect investors, superannuants, depositors and insurance policy holders. They also regulate and enforce laws that promote honesty and fairness in financial products and services, in financial markets, and in Australian companies. |
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