Way to join llluminati in Uganda Call☎[phone]/0758572557

Way to join llluminati in Uganda Call☎[phone]/0758572557

1. THE ROLES
OF
BUSINESS

2. NEEDS AND WANTS
Needs are a requirement for your
physical and mental wellness in this
world. The needs you have will vary
slightly based on your situation. But
they will boil down to the essentials of
food, shelter, healthcare expenses,
clothing, and transportation. 
Wants are purchases that are not
required to survive, but you’d like to
have in your life. Basically, anything
that isn’t a need can be considered a
want. 

3. GOODS V’S SERVICES
A good is a tangible or
physical product that
someone will buy,
tangible meaning
something you can touch
A service is when you
pay for a skill. A service
is something intangible,
which can't be physically
touched or stored

4. ROLE OF BUSINESS
How would you describe the role of businesses?

5. PRODUCTION
When we go shopping, we are choosing from a range
of finished products — products that are ready for
customers to buy and use. Rarely do we stop to think
about all the operations that have occurred to
transform raw materials into finished products ready
for consumption. Business enterprises undertake
many activities to provide the products demanded by
customers. These include marketing, management,
organising resources, distributing goods and services
and planning finance needs, just to name a few.
However, by far the most important of all these
activities is production. Production refers to those
activities undertaken by the business that combine
the resources to create products that satisfy
customers' needs and wants.

6. PROFIT
Description
■Profit refers to revenue
(sales) less expenses
(costs). It is the reward
owners receive for
producing products
consumers need and
want.
Lego
■In 2019, worldwide revenue
was $38.5b. After deducting
expenses their profit was
$8.3b

7. EMPLOYMENT
Description
■Businesses provide
employment (jobs) to
people in their
community
Lego
■At the end of 2019, Lego had
18,800 employees around
the world

8. INCOME
Description
■Businesses provide
income to employees and
business
owners/shareholders. Eg
wage, salary, dividend
Lego
■Total income paid by Lego in
2019 was $6.3b. Dividends
paid were $8b

9. CHOICE
Description
■Consumers have freedom of
choice and the opportunity to
purchase a variety of
products at competitive
prices. The more competition
there is, the greater the
choice available to
consumers.
Lego
■There are currently around
15,824 Lego sets available
for customers to choose
from

10. INNOVATION
Description
■The process of creating a
new or significantly
improved product,
service or process (way
of doing something)
through research and
development
Lego
■Recent Lego innovations
include mindstorm kits,
robotics and digital toys to
name a few
Find an example of an
innovation from the last 5
years that has changed the
world.

11. ENTREPRENEURSHIP
AND RISK
Description
■People who transform their
ideas into a new business are
called entrepreneurs. They
are prepared to take the risk
of starting and operating a
business venture, and of
turning their dreams and
passions into a livelihood.
Lego
■Lego was founded in 1932 by
Ole Kirk Kristiansen. It
originally made wooden toys.
It is still owned by the same
family

12. WEALTH
Description
■Business activity
results in higher levels
of economic growth
and wealth. The more
that is produced, the
more wealth is
generated within the
Australian economy.
Lego
■The value of Lego shares
have substantially increased
in value over time, increasing
the wealth of the family
shareholders 10 bizarre products that made millions

13. QUALITY
OF LIFE
Description
■Businesses offer a vast array of
products that improve our standard
of living. Many businesses have
responded to quality-of-life issues
and are implementing
environmentally friendly procedures
and flexible working conditions.
Lego
■“Building with Lego bricks reduces
stress and improves your well-being”
Name 1 product that has made your
quality of life better (besides your phone).
How?

14. Activities
■Read the case studies on the lawn mowing business
and Bakers Debright and complete the activity
■Complete the questions on the Great Aussie Products
and Fernando’s Fencing
■Aussie-inventions-that-changed-the-world

15. TYPES OF BUSINESS

16. Classification of businesses
Industry sector Size Legal structure Geographical location
∙Primary
∙Secondary
∙Tertiary
∙Quaternary
∙Quinary
 
∙Large
∙Medium
∙Small
∙Micro
∙Sole trader
∙Partnership
∙Private company
∙Public company
∙Government
Enterprise
∙Franchise
 
∙Local
∙National
∙Global
 

17. 1. Classifying by size
■The size of a businesses is usually based on the
number of employees the business has.

18. Micro business
■Businesses
employing fewer
than 5 people
(represent 88%
of small
businesses)

19. Small business
■Businesses
employing 5 or
more people but
fewer than 20
people (less than
100 employees if
a manufacturing
business).

20. Medium business
■Businesses employing between
20 and 199 people

21. Large business
■Businesses employing 200 or
more people

25. Business Type Corner Store, Local Mechanic, Hairdressing Salon
Number of Employees (ABS) Fewer than 20 employees
Type of Ownership Independently owned and operated by usually one or two
people
Most Common Legal Structure Sole Trader, Partnership
Decision Making Owner responsible for majority of decisions, simple and
quick implementation of decisions
Sources of Finance Owner (usually from own savings or a loan), difficulty in
accessing loans
Market Share Small, usually in the local area, not dominant in the industry
Activity on page 14

26. Activities
■Complete the activity on pg 15
■Watch Small business secrets
https://www.youtube.com/watch?v=9ch_u4D-r_Q
■https://www.youtube.com/watch?v=5JRAIrrcWHE&lis
t=PLHzlVjEdK3p3cjB0A4ZYNbkRQ6n-2g6h1&index=
2
■Castle Hill Small Business Awards

27. The Role of SMEs
By examining some of the main features of
SMEs, their overall important role within the
Australian economy can be seen. Australian
small to medium enterprises provide:
•Employment
•Production
•Exports
•Research and development
•Income

28. 2. Classifying by geographical spread
Local
A local business, such as a newsagent, corner
store, hairdresser, mechanic or pharmacy, has a
very restricted geographical spread. It serves
the surrounding area and is in no position to
offer a range of products to another suburb or
town. Local businesses such as these will
frequently be used by consumers who live
nearby.
The majority of local businesses tend to be
small to medium in size.

29. National
As a business grows, it increases its range of
products and the area it serves. As it does this, it
develops into a national business — one that
operates within just one country. Examples
include Coles, Australian Geographic, David
Jones, etc.

As a national business expands and increases its
sales, it will eventually run out of new customers
to sell to; that is, the domestic market becomes
saturated. If the business wishes to keep
expanding, it can decide to export and sell its
products in other countries. This allows the
business to tap into new markets.

30. Global
A global business, commonly referred to as a
transnational corporation (TNC), is a large business
with a home base in one country that operates partially
owned or wholly owned businesses in other countries.
The TNC represents the highest level of involvement in
global business.

For such companies, national borders do not represent
barriers to trade — they are merely lines on a map.
Consequently, TNCs conduct a large percentage of
their business outside their home country. Examples
include Coca-Cola, LG, McDonald’s, CSR, News
Corporation, BHP Billiton, Toyota, Unilever, Westfield
and Exxon.

31. Activities

■Research activity
Choose ONE Australian business that has expanded overseas, and
ONE global business that has expanded into Australia. Create a
presentation that addresses the following:
–Name of the business
–Description (what do they do?)
–Date and location of their first expansion
–Has their global expansion been successful? Give evidence for
your answer eg statistics

32. 3. Classifying by industry sector

33. Activity – match the picture to the
industry sector

34. 4. Classifying by legal structure

35. Public sector vs private sector
The public sector includes any organisations run by the
government like hospitals and schools, post offices and railways.

The private sector are businesses are owned by private individuals.
Some of these businesses are set up in order to make a profit for
their owners. However, not all of them have this as an objective, eg
charities.

Activity
Name 5 private sector businesses and 5 public sector
businesses

36. Incorporated v’s unincorporated
The term incorporated refers to the process companies go
through to become a separate legal entity from the owner/s.
This means the business exists in its own right, its own legal
entity. Regardless of what happens to individual owners
(shareholders) of the company, the business continues to
operate. Eg public and private companies

An unincorporated business has no separate legal entity
existence from its owners and will be either a sole trader or
partnership. This means the business entity and the owners
are one and the same. When the owner dies, then so too does
the business. Eg sole trader and partnership

37. Unlimited v’s limited liability
With limited liability, the owners of the company are not taking as big a risk. If
the company goes out of business they can only lose the investment they have
already made in the business. No one is going to come round and ask them to
sell their personal possessions in order to pay any debts the business may
have. In this case the business is a ‘separate legal entity’. In other words, the
business is treated like a person in its own right and the business would be
taken to court – not the owners
With unlimited liability, the owners of the business are personally responsible
for the debts of the business. Therefore, if the business runs into trouble and
shuts down, any debts the business has must be paid by the owners. Even if
this means they have to sell their house, car and other personal possessions
in order to raise the money to pay it back. They are liable for the debt.

38. Franchises
Under a franchise agreement a person buys the right to use the
business name and distribute the goods or services of an existing
business.
The business that grants the right to others to use its name and
products is known as a franchisor.
The franchisor supplies a known and advertised business name,
the required training and staff development, a method of doing
business, management skills, and materials.
The business that buys those rights is known as a franchisee.
The franchisee supplies the start-up money and labour, operates
the franchise business, and agrees to abide by the terms and
conditions of the franchise agreement.

39. Franchising has a success rate of almost three times that of
independent businesses, largely because it involves an
established business name backed up by managerial expertise
(see the following Snapshot). Franchising is the area of fastest
business growth in Australia. Some well-known franchises
include Bakers Delight, Tandy Electronics, McDonalds, Optus
World, Wendy's, Angus & Robertson, 7–Eleven and The Athlete's
Foot.

40. Type/ Feature Sole Trader Partnership Private (Proprietary) Company Public Company
Number of
Owners
1 owner 2-20 owners 2-50 shareholders 1 minimum shareholder
Liability Unlimited liability Unlimited liability Limited liability Limited liability
Legal
requirements
Must be registered with ASIC IF
the business name does NOT
have the name of the owner
within it.
File for an ABN
Registration of business name
Partnership agreement must be in
line with the Partnership Act 1982.
Whilst not legally required, its
recommended that a partnership
agreement be made in writing
All companies have gone through the process of
incorporation and are governed by the
Corporations Act 2001
The company name must be registered with ASIC
and apply for the Australian Company Number.
To become a public company, it will need to float the business
on the ASX through an Initial Public Offering (IPO). It must offer
a prospectus whee selling shares for the first time. The portion
of the business that is up for investment can be bought by the
public at this stage. Must have a minimum of 3 director and use
the term “Ltd” in their name.
Advantages Low cost of entry
Simplest form
Complete control of the business
No tax on business profit
Low start-up costs
Less costly to operate than a
business
Less government restrictions

Limited liability – shown in the name through Ltd.
Easier to attract finance
Perpetual succession – business lives on beyond
the owner
Pays a lower tax rate – company rate
Can have a minimum of 1 shareholder and 1
director
Able to raise equity through the issue of shares
Expansion is more achievable though the extra access to
finance
Limited liability
Disadvantages Unlimited liability
End of business when owner dies
Difficult in raising finance for
expansion
Unlimited liability
Liability for all debts, including
partner’s debts
Possibility of disputes between
partnership
Double taxation – on company and personal
income
Must publish an annual report subject to auditing
May become too large resulting in inefficiencies
Management maintains less control
Tax implications – double taxation
Responsible to its shareholders first