1Define entrepreneur.
An entrepreneur is someone who starts and manages a business, taking on financial risks in hopes of making a profit.
2Describe the characteristics of successful entrepreneurs.
The characteristics of successful entrepreneurs include innovation, risk-taking, resilience, leadership, and vision.
3Define agenda, apologies, minutes, motion, moved, seconded, carried.
Agenda: A list of items to be discussed at a meeting. Apologies: A formal excuse for not attending a meeting. Minutes: Written records of a meeting. Motion: A proposal put forward for discussion or decision. Moved: The act of formally proposing a motion. Seconded: When someone formally agrees with a motion. Carried: When a motion is approved.
4Define market research and explain why it is important when planning a business.
Market research is gathering and analyzing information about the market, customers, and competitors to help plan a business. It’s important because it guides decisions and reduces risks.
5Distinguish between primary and secondary market research.
Primary: First-hand data collected directly like surveys or interviews. Secondary: Data collected from an existing source like reports or studies.
6List factors that influence the location of different businesses.
Market access, transport, costs, competition, labor availability, and regulations.
7Define demographics and sustainable competitive advantage.
Demographics is statistical data about a population, like gender, age, and income. Sustainable competitive advantage is a long-term edge over competitors that is not easily replicated.
8List demographic factors.
Age, gender, income, education, occupation, etc.
9Explain how demographic factors influence business decisions.
These factors influence business decisions like product offerings, marketing, and location.
10Identify and describe the features of the 4 main business structures.
Sole trader: Owned and run by one person. Partnership: Two or more people share ownership. Company: A legal entity separate from owners. Franchise: A business model where a franchisee operates a business under the franchisor’s brand.
11Distinguish between incorporatednincorporated and limitednlimited liability.
Incorporated: Business is a separate legal entity. Unincorporated: Business is not separate from the owner. Limited liability: Owner’s financial risk is limited. Unlimited liability: Owners are personally liable for business debts.
12Define incorporation.
Incorporation is the process of forming a company that is legally separate from its owners.
13Distinguish between debt and equity finance.
Debt: Borrowing money like loans or bonds. Equity: Selling shares in the business.
14Define prospectus.
Prospectus is a document that provides information about an investment, typically for shares or bonds, informing potential investors of risks and returns.
15Identify the 3 ways of establishing a business and the advantages/disadvantages of each.
1. Start from scratch: Complete control but high risk. 2. Buy an existing business: Less risk but may involve hidden problems. 3. Franchise: Proven business model but less freedom.
16Define goodwill and franchise.
Goodwill is the value of a business’s reputation. Franchise: A proven business model where the franchisor allows others to operate a business under their brand.
17Identify factors that contribute to, or act as barriers to, business success.
Poor management, lack of capital, competition, and legal issues.
18Define what is a business plan.
A business plan is a written document outlining a business's goals, strategies, and financial projections.
19Identify the parts of a business plan.
Parts of a business plan include an executive summary, market analysis, marketing strategy, financial plan, and operations plan.
20Identify some federal, state, and local government regulations that affect businesses.
Federal: Taxation and workplace laws. State: Health and safety and environmental laws. Local: Zoning and permits.
21Outline WHS, taxation, and environmental regulations that affect businesses.
WHS: Workplace, Health, and Safety standards. Taxation: Laws on business income tax. Environmental: Laws related to sustainability and pollution.
22Identify unsafe practices that should be avoided when handling and preparing food.
Cross-contamination, improper temperature control, and unclean facilities.
23Define promotion.
Promotion is the activities that communicate the value of a product or service to potential customers.
24Identify a range of promotion methods.
Advertising, public relations, sales promotions, and personal selling.
25Define corporate social responsibility.
A business model where companies operate in ways that are socially and environmentally responsible, which builds reputation, attracts customers, and benefits society.
26Outline examples of ethical and CSR business behavior.
Using sustainable materials, donating to charity, and ethical labor practices.
27Calculate cash balances in a cash book.
Add all cash inflows and subtract the cash outflows.
28Construct a profit and loss statement.
A financial statement showing revenue, costs, and profits.
29Define COGS.
Cost of Goods Sold - direct costs of producing goods sold by a business.
30Calculate gross profit, expenses, and net profit.
Gross Profit: Sales-COGS. Expenses: Operational costs. Net Profit: Gross profit-expenses.
31Define assets, liabilities, and owner’s equity.
Assets: What the business owns. Liabilities: What the business owes. Owner’s equity: The owner’s share of the business after liabilities are subtracted.
32Classify items as either assets, liabilities, or owner’s equity.
Assets: Cash, inventory, equipment, buildings, and land. Liabilities: Accounts payable, loans payable, mortgage, and accrued expenses. Owner’s equity: Owner’s capital, retained earnings, and shareholder’s equity.
33Construct a balance sheet given information and calculate balances.
A snapshot of a business’s financial position (Assets = Liabilities + Equity).
34Identify risks to business success.
Market competition, economic downturns, and poor management.
35Define the business cycle and GDP.
Business cycle: The natural rise and fall in economic activity. GDP: Gross Domestic Product, a measure of a country’s economic output.
36List the characteristics of the business cycle phases.
Expansion: Economic growth. Peak: Economy at its best. Contraction: Economic slowdown. Trough: Economy at its lowest.
37Suggest how businesses will respond to different phases in the business cycle.
In expansion, businesses invest and expand; during contraction, businesses cut costs and become more cautious.