LESSON 22.8 Review 22.8.1
Key knowledge summary Use this dot point summary to review the content covered in this topic. 22.2 What are short-term personal financial goals? • Individuals can improve their financial flexibility by saving money, allowing them to avoid debt and be prepared for unexpected expenses. • Preparing a personal budget can assist us to achieve our financial goals. 22.3 What are long-term personal financial goals? • Longer-term savings through superannuation contributions, home ownership or investment in shares can provide security for us as we get older and approach retirement age. 22.4 What is business finance? • Business owners need to keep track of all financial transactions so that they can determine the level of success of the business. • An important part of any business plan is the financial plan, which allows the business owner to create a budget and keep track of establishment and operating expenses. 22.5 Aboriginal and Torres Strait Islander communities in the market? • Aboriginal and Torres Strait Islander businesses and entrepreneurs develop opportunities in the market. • Aboriginal and Torres Strait Islander businesses and entrepreneurs establish partnerships or cooperatives. • Aboriginal and Torres Strait Islander communities participate in contemporary markets and have distinct approaches to marketing, employment and social contribution. • Many Aboriginal and Torres Strait Islander businesses and entrepreneurs use connection to Country to make innovations in the production and distribution of goods and services. 22.6 What factors influence business opportunities? • Business opportunities are influenced by factors including demographics, target market, competition and location. • A business can respond to opportunities by following a process to develop new products to satisfy demand or by changing the way products are delivered to consumers. 22.7 Inquiry: Financial and business decision-making • Personal, organisational and financial planning for the future is important for consumers and businesses. • Different businesses respond in different ways to opportunities in the market. 22.8.2 Key terms budget an itemised estimate of income and expenses for a given period cash flow statement cash flow is the movement of money in and out of the business. A cash flow statement can show the net cash flow; this is the money left after money out has been deducted from money in. competition the outcome of two or more businesses attempting to supply their products to the same group of customers cooperative a business owned by employees and customers of the business, which operates to benefit its members and society cost of goods sold the direct cost of the goods that have been sold; for example, the raw materials used to make the product
656 Jacaranda Humanities Alive 8 Victorian Curriculum Third Edition
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