Essential Business and Employment Concepts

Employment and Workplace Terms

• Award: A document outlining an employee’s minimum pay and conditions.
• Collective wants: Goods and services for the whole community.
• Enterprise agreement: An agreement regarding pay and conditions.
• Entitlements: Non-wage benefits, such as sick leave.
• Labour force: People with jobs.
• Loading: Extra pay on top of normal full-time wages.
• Mediation: A third party that helps reach a solution.
• Negotiation: Discussing issues to reach a compromise.
• Participation rate: The percentage of people aged 15 years or over who are employed.
• Pieceworkers: Workers paid based on the number of items made.
• Redundancy: When a job is no longer to be performed.
• Taxes: A percentage of income taken by the government.

Three Elements of an Employment Contract

• Offer: The employer offers work to the employee.
• Acceptance: The employee accepts the offer to work.
• Consideration: The benefits each party receives from the contract.

Workplace Discrimination and Operations

• Direct discrimination: Treating someone less favourably than another person.
• Indirect discrimination: An unequal impact on a person compared to others.
• Outsourcing: Moving organisational operations to outside suppliers.
• OH&S: Occupational Health and Safety.

Superannuation

Advantages

• Forced saving scheme.
• Money is automatically invested.
• Value increases over time.

Disadvantages

• Super fund investments may lose value over time.
• Most people have to wait until they are 60 to access it.

Business Finance and Entrepreneurship

• Assets: Items of value owned by a business.
• Demographic factors: Factors affecting customer spending, such as age, gender, family size, and income.
• Liabilities: Debts owed by a business to others.
• Entrepreneur: Someone who starts, operates, and assumes the risk of a business venture.
• Liquidity: The ability of a business to pay its debts on time.
• Net profit/loss: The amount remaining after operating expenses are deducted.
• Revenue: Income earned by a business.
• Franchise: An authorization granted by a government or company to an individual or group, enabling them to carry out specified commercial activities.

Financial Reporting

Revenue Statement Steps

1. Revenue
2. Expenses
3. Calculate gross profit

Marketing Strategies

• Digital marketing: Online sales channels.
• Integrated marketing: Optimising both traditional and digital marketing activities.
• Market research: Defining the target market through accurate research.
• Traditional marketing: Reaching the market via radio or newspapers.

The Business Cycle

• Growth: The business is doing well and growing rapidly.
• Peak: The amount of wealth is very high, often with rising prices.
• Recession vs. Decline: Split different ways.
• Recovery: Businesses begin producing more products to meet demand.

The 4 Ps of Marketing

• Product: Goods or services for sale to your target market.
• Place: Regards distribution, location, and methods of getting products to the customer.
• Price: The money consumers pay in order to purchase products.
• Promotion: The act of communicating the benefits and value of your products to consumers.