Commerce Glossary Quiz
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Questions and Answers

What is the primary purpose of a bond in rental agreements?

  • To provide a financial incentive for longer lease terms
  • To secure a loan for purchasing a property
  • To serve as a deposit for future rent payments
  • To cover any damages or cleaning costs from the rental property (correct)

    • Which statement accurately describes a budget?

  • A detailed list of income and planned expenditures (correct)
  • A type of loan document for purchasing a home
  • A financial strategy employed by government agencies
  • An informal estimate of expenses for social activities

    • What does a cooling off period allow a buyer to do?

  • Request repairs on the purchased property
  • Cancel the sales contract without penalty (correct)
  • Collect a refund on the deposit paid
  • Negotiate for a lower purchase price

    • What is a significant function of community services?

    <p>To provide essential services that are not profit-driven</p> Signup and view all the answers

    Which of the following best defines an apprentice?

    <p>A person working for a skilled individual to gain experience</p> Signup and view all the answers

    What is the purpose of a reservation fee in the context of tenancy?

    <p>To reserve the premises while the application is being considered</p> Signup and view all the answers

    What is the main function of a tax file number?

    <p>To identify a person for taxation purposes</p> Signup and view all the answers

    Which of the following best defines a progressive tax system?

    <p>A tax system that charges higher rates to those with higher incomes</p> Signup and view all the answers

    What does 'superannuation' refer to?

    <p>A retirement savings plan where a portion of income is set aside</p> Signup and view all the answers

    Which term describes the practice of people sharing their possessions for payment?

    <p>Collaborative consumption</p> Signup and view all the answers

    What is the purpose of cash deductions?

    <p>To reduce assessable income</p> Signup and view all the answers

    Which of the following are considered fixed expenses?

    <p>Monthly mobile phone charges</p> Signup and view all the answers

    What is a lease?

    <p>A legal contract between tenant and landlord</p> Signup and view all the answers

    What does the term 'inclusions' refer to in an insurance policy?

    <p>Covered items in the policy</p> Signup and view all the answers

    What is a private mortgage?

    <p>A loan from a private lender secured by real estate</p> Signup and view all the answers

    Which scenario best describes a payday loan?

    <p>A high-cost, short-term loan for immediate cash</p> Signup and view all the answers

    What type of costs are referred to as ongoing costs?

    <p>Recurring monthly bills</p> Signup and view all the answers

    Which entity is known as the insurer?

    <p>The company providing the insurance</p> Signup and view all the answers

    What is a progressive tax system?

    <p>A tax system where the tax rate increases as the taxable amount increases</p> Signup and view all the answers

    What does the term 'overtourism' refer to?

    <p>The influx of tourists leading to congestion and conflicts with locals</p> Signup and view all the answers

    What is voluntourism?

    <p>Spending time assisting with community or environmental projects while traveling</p> Signup and view all the answers

    What is the purpose of a departure tax?

    <p>To be paid when leaving a country</p> Signup and view all the answers

    Which of the following defines agritourism?

    <p>Visiting farms and food-related ventures for education and leisure</p> Signup and view all the answers

    What does 'foreign exchange rate' indicate?

    <p>How much one currency is worth in terms of another currency</p> Signup and view all the answers

    What is the meaning of corporate social responsibility?

    <p>Considering the interests of stakeholders and society in business decisions</p> Signup and view all the answers

    Which of the following best defines an itinerary?

    <p>A detailed travel plan outlining destinations and activities</p> Signup and view all the answers

    Which statement about 'entrepreneurs' is true?

    <p>They set out to build businesses in new fields.</p> Signup and view all the answers

    What does 'goodwill' refer to in a business context?

    <p>The monetary value of a business's reputation.</p> Signup and view all the answers

    What is the primary purpose of conducting 'market research'?

    <p>To collect and analyze information about customers and opportunities.</p> Signup and view all the answers

    In the context of business, what is 'limited liability'?

    <p>A legal protection allowing shareholders to risk only their investments.</p> Signup and view all the answers

    What characterizes a 'niche market'?

    <p>A narrowly focused target market segment.</p> Signup and view all the answers

    What does 'incorporation' involve?

    <p>The establishment of a company as a separate legal entity.</p> Signup and view all the answers

    What is the main function of an 'income statement'?

    <p>To summarize income earned and expenses incurred over a period.</p> Signup and view all the answers

    What defines an 'unsecured loan'?

    <p>It does not require any assets as security.</p> Signup and view all the answers

    What is meant by 'sustainable competitive advantage'?

    <p>The ability to develop long-term strategies that outlast competitors.</p> Signup and view all the answers

    What is the role of 'promotion' in business?

    <p>To inform, persuade, and remind customers about products.</p> Signup and view all the answers

    Study Notes

    Commerce Glossary

    • Apprentice : A person learning a trade under a skilled worker, often for lower wages.
    • Birth Certificate: An official document from the NSW Registry of Births, Deaths, and Marriages, containing information like name and place of birth.
    • Bond: Money deposited with the Rental Bond Board to cover damages or cleaning costs for rented properties.
    • Budget: A plan outlining expected income and expenses.
    • Centrelink: The main Australian government welfare agency providing financial assistance and social services.
    • Community Services: Services funded locally, offering desirable but non-profit-making activities.
    • Condition Report: A detailed document outlining the condition of a property when new tenants move in.
    • Cooling Off Period: A period after signing a sale contract during which the buyer can cancel without penalty.
    • Debit Card: A card allowing electronic money transfers from your account to make purchases or withdraw cash.
    • Deductions: Items reducing your assessable income, thereby lowering your tax liability.
    • Establishment Costs: One-time expenses related to setting up a new home or business.
    • Exclusions: Items not covered by an insurance policy.
    • Fixed Expenses: Consistent expenses that remain the same each time, like rent or a minimum phone bill.
    • Inclusions: Items covered by an insurance policy.
    • Insurance: Financial protection against loss, damage, or accident, mitigating potential financial hardship.
    • Insured: The person covered by an insurance policy.
    • Insurer: The company providing insurance.
    • Kitty: A shared fund of money contributed by a group, like flatmates.
    • Landlord: The owner of a rented property.
    • Lease: A legally binding contract between a tenant and landlord, allowing use of the property in exchange for rent.
    • Medicare Card: A government-issued card used for accessing free healthcare from doctors and public hospitals.
    • Medicare Levy: A 2% tax on income used to fund the Medicare system.
    • Mortgage: A loan from a financial institution, secured by an asset like a house, repaid with interest.
    • Ongoing Costs: Recurring expenses like rent, mortgage payments, and utility bills.
    • Payday Loan: A high-cost, short-term loan with a small amount, repaid when the borrower receives their next paycheck.
    • Premium: The amount paid to receive insurance coverage.
    • Progressive Tax System: A tax system where the tax rate increases as income rises.
    • Refuge: A safe haven providing shelter and protection from danger, like a youth refuge.
    • Reservation Fee: Typically one week's rent, securing a property while a tenancy application is processed.
    • Residential Tenancy Agreement: The standard agreement between tenants and landlords for renting a house or apartment.
    • Sharing Economy: Also known as collaborative consumption, involves people sharing their possessions for payment.
    • Superannuation: Retirement savings set aside during working life, commonly called "super," representing 10.5% of income.
    • Tax File Number (TFN): A unique personal reference number issued by the Australian Taxation Office for identification and tax enforcement.
    • Tenant: The person or group renting a property from a landlord.
    • Utility: A company providing essential services like water, gas, or electricity.
    • Variable Expenses: Expenses fluctuating over time and not occurring regularly, like concert tickets or computer games.
    • Warranty: A promise to repair any defects in a product.

    Business Glossary

    • Assets: Items of value owned by a business.
    • Business Opportunity: A potential avenue for success identified by an entrepreneur.
    • Competition: Rivalry among businesses striving to fulfill market needs and wants.
    • Corporate Social Responsibility: Businesses considering the interests of stakeholders, society, and the environment in their economic and business decisions.
    • Cost-Benefit Analysis: Evaluating the strengths and weaknesses of different options to determine if the benefits outweigh the costs.
    • Debt: Money owed to external sources, like a bank.
    • Demographic Factors: Population characteristics impacting consumer spending, including age, ethnicity, gender, marital status, family size, and income.
    • Entrepreneur: A person who establishes a business in a new area, often employing innovative methods.
    • Equity: Funds contributed by the business owner(s).
    • Franchise: Acquiring rights from another business to distribute its products under its name.
    • Goodwill: The monetary value of a business's reputation.
    • Income Statement: A summary of income earned and expenses incurred over a trading period.
    • Incorporated: A company becoming a separate legal entity from its owner(s).
    • Incorporation: The process of a company becoming a separate legal entity from its owners (shareholders).
    • Initiative: The ability to demonstrate resourcefulness and independent decision-making regarding actions and timing.
    • Innovation: Creating new or significantly improved products, services, or processes (ways of doing things).
    • Liabilities: Debts owed by a business to others.
    • Limited Liability: In the event of business insolvency, shareholders typically lose only their invested capital.
    • Liquidity: A business's ability to pay its short-term debts on time.
    • Market Research: Collecting and analyzing information about customers and available business opportunities.
    • Niche Market: Also known as a concentrated or micro market, a narrowly targeted market segment.
    • Partnership: A business owned and operated by two to twenty people.
    • Private Company: An incorporated business with two to fifty private shareholders.
    • Promotion: Methods used by a business to inform, persuade, and remind customers about its products.
    • Prospectus: A legal document issued by companies offering securities for sale.
    • Resilience: The ability to handle setbacks, adapt to change, and recover from challenges.
    • Secured Loan: A loan where the borrower offers an asset as collateral.
    • Sole Trader: A business owned and operated by one person.
    • Sustainable Competitive Advantage: A business's ability to develop strategies ensuring a long-term edge over rivals.
    • Target Market: The group of customers a business aims to sell its products to.
    • Taxation: Government levies or revenue measures impacting prices, growth rate, and income distribution.
    • Unlimited Liability: The business owner is personally responsible for all business debts.
    • Unsecured Loan: A loan without collateral required, usually associated with higher interest rates.
    • Vision: A shared, clear sense of direction enabling individuals to achieve a common goal.

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    Commerce Glossary PDF

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    Test your knowledge of key terms in commerce and financial services. This quiz covers essential concepts including apprenticeships, budgeting, and community services. Perfect for anyone looking to enhance their understanding of commerce vocabulary.

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