1. What is a business? A business is a legal entity that provides goods and services. 2.

Profit Organisations aim to make a profit so they can expand and make money for themselves and employees. Not-For-Profit Organisations also aim to make a profit, however it is not their main goal. They use the money to keep the organisation running and to achieve a social mission. E.g. helping the homeless. They both maintain an ethical standard, they both pay bills and must be held accountable for their actions. No one really owns not-for-profit orgs. For Profit orgs distribute profit to owners where not for profit orgs use the money to pay expenses. 3. Small Businesses: Employ less than 20 people Independently owned and managed (Usually sole proprietor or partnership.) Financed by owners. Has a very small market share. Medium Business: Employ between 20 and 199 Large Business: Employ 200+ people are operated by a board of directors, have turnover and assets in the millions and are usually listed in the stock exchange 4. There are 3 broad objectives that orgs will aim for, Financial, social and personal objectives. 5. Financial: 1. Increase Sales: Increasing sales will allow the business to make more money and make a greater profit. This may be done through marketing, innovative products or better service. 2. Increase market share: Usually an objective for large businesses, they often develop an extensive product range using many different brand names to gain a few extra percentage points of market share. Small market share gains often translate to large profits 3. Expand the business: Most businesses want to grow. This may be achieved by opening more outlets, employing more staff, starting new projects or developing innovative products. It can also expand by merging with another company so two companies become one. Making profit is usually the primary objective for businesses. Social: 1. Community service: Business sponsorship of a wide range of community events, promotions and program rapidly increased during the past decade. Many businesses financially support educational, cultural, sporting and welfare activities. 2. Provision of employment: Most large businesses do not regard employment of people as a main objective. Many small business owners however look at the continuity of their business sometimes employing family members who might be unemployed. 3. Social Justice: Everyone has the right to be treated fairly. A business may be concerned for social justice that is, it adopts a set of policies to ensure employees and/or other community members are treated equally and fairly. 4. Ecological Sustainability: Organisations have to take increasing responsibility for the protection of the environment. Earth is fragile and we need to take care of it. The social conscience of responsible business owners leads them to adopt policies of conservation, recycling and restoration. Personal: Personal objectives are not made public. However, this does not diminish their importance.

Personal objectives of a higher income and improved financial security, for example, complement the business objectives. Contribution of small business to the economy: An economy is a system set up to determine what to produce, how to produce and to whom production will be distributed. Small businesses make the following contributions to the economy. 1) Employment and taxation revenue 2) Economic growth 3) Export Earnings Employment and taxation revenue: Employment keeps the economy healthy. Employed Australians buy goods and services with the money they earn. Small businesses contribute revenue through taxation. Not only do they pay tax, their employees also pay income tax to provide goods and services to better the community like better education systems. Economic Growth: When a nation increases the value of goods and services over a period of time. GDP is the total market value of all final goods produced by a country over a set period of time. Small business plays an important role in contributing to our overall economic growth. The total output of the nations small businesses makes a significant contribution to the economy. Export Earnings: Refers to the sale of our goods and services to other countries

Small Business failure: Nearly 3 out of 4 SB fail within their first 5 yrs of beginning (about 50% fail within 2 yrs). Lack of management (mgt) skills Inaccurate records Cant cope with fluctuating costs Not enough start up capital Overuse of credit Inadequate sales Lack of financial planning

Internal and Extrernal environments of LSO: Businesses operate in environments that impact on their performance. The internal environment is everything inside the business and they can control it. A businesses external environment (everything outside the business) comprises of the operating and macro environment. The operating environment are the factors that interact directly with the org and are specific to the org. Business have some control over the operating environment. The macro environment are broad and general factors that affect all businesses and businesses have no control over it.

Stakeholders are anyone that has a vested interest in the business.

Brighton Secondary Colleges stakeholders are: 1. Staff 2. Students 3. Parents 4. Government 5. Universities 6. Local competition i.e. Bentleigh Secondary Collegess 7. Future Students 8. Communities e.g. neighbours 9. Companies like Jacaranda and book supplies, furniture supplies. 10. Transport like buses and trams 11. Canteen Ethics refers to the application of moral standards to business behaviour and Doing the right thing. An example of this is not accepting bribes. Social responsibility refers to going over and above the law in order to benefit the community. An example of this is donating money to charity.

1. The four ethical issues are: Behaving regularly and fairly. It is expected that businesses tell the truth and do not mislead or deceive. Truthful communication in business: False or misleading advertising is unethical and illegal. Terms such as special or sale, low fat or light can be misleading. If the businessperson uses words attempting to mislead customers, the behaviour is unethical.

Dealing with employees ethically: Workplace relations can sometimes result in ethical problems. For instance, private information is sometimes not kept secret, obligations are not always fulfilled and harassment or discrimination may occur. Conflicts of interest: Occurs when a person in a position of trust has competing person or professional interest such as when gifts or payments are offered. There is a fine line