Responsible Lending and Entrepreneurship Insights

Equity financing does not require repayment and offers taxation advantages, as there are no interest payments involved.

Debt finance involves borrowing money from external sources, such as banks, to fund business operations; an example is a mortgage.

A key disadvantage of an overdraft is that it typically comes with a higher interest rate.

<p>Overdrafts are useful for covering unexpected expenses such as equipment failure, employee wages, and supplier invoices.</p> Signup and view all the answers

<p>A business might prefer debt financing to avoid selling ownership stakes and incurring ongoing interest costs.</p> Signup and view all the answers

<p>One requirement for obtaining an overdraft is that the total amount borrowed must remain within the agreed limit.</p> Signup and view all the answers

<p>Location influences foot traffic and visibility, while demographics provide insights into customer preferences and spending habits.</p> Signup and view all the answers

<p>The cost of debt finance can vary depending on the type of finance chosen, the source of the funds, and the length of time they are borrowed for.</p> Signup and view all the answers

<p>An overdraft can help businesses manage short-term cash flow needs effectively.</p> Signup and view all the answers

<p>Mass market targets a broad audience with general products, whereas niche market focuses on specialized products for specific consumer segments.</p> Signup and view all the answers

<p>A business can attract more customers by lowering prices, thereby increasing their market share.</p> Signup and view all the answers

<p>An advantage is the freedom to set up the business as desired; a disadvantage is the high risk and uncertainty involved.</p> Signup and view all the answers

<p>Innovative products focus on quality and unique features to attract customers, while pricing strategies compete mainly on cost.</p> Signup and view all the answers

<p>Identifying target markets allows businesses to tailor their marketing strategies to meet specific consumer needs.</p> Signup and view all the answers

<p>Challenges include difficulty in securing financing and the need for time to build relationships with customers.</p> Signup and view all the answers

<p>Virtual location affects the business's ranking on search engines, influencing visibility and accessibility to potential customers.</p> Signup and view all the answers

<p>Responsible lenders must make inquiries about the consumer's financial situation, verify this information, and assess whether the credit contract is suitable.</p> Signup and view all the answers

<p>Deregulation removed rules governing how banks operate, leading to increased investment opportunities as banks could freely lend to individuals and businesses.</p> Signup and view all the answers

<p>An entrepreneur is a person who builds a successful business in a new field. Examples include Steve Jobs in technology and Oprah Winfrey in media.</p> Signup and view all the answers

<p>Initiative is essential for taking action and seizing opportunities, while resilience allows entrepreneurs to cope with stress and recover from setbacks.</p> Signup and view all the answers

<p>APRA oversees authorised deposit-taking institutions (ADIs) to ensure their stability and compliance with regulations.</p> Signup and view all the answers

<p>Learning from failure enables entrepreneurs to adapt their strategies, improve their business models, and increase their chances of future success.</p> Signup and view all the answers

<p>Lenders must consider the consumer's financial situation, including their income, expenses, and credit history.</p> Signup and view all the answers

<p>It facilitated easier access to credit for individuals, as banks could lend more freely without stringent operational rules.</p> Signup and view all the answers

<p>Quality control is reactive and focuses on identifying defects through inspections, while quality assurance is proactive and ensures standards are met to achieve right-first-time objectives.</p> Signup and view all the answers

<p>Quality control can increase wastage as defective products are often disposed of after inspections.</p> Signup and view all the answers

<p>'Fitness for purpose' refers to how well a product meets its intended design and performs its functions satisfactorily.</p> Signup and view all the answers

<p>Marketing plays a crucial role in maximizing sales, increasing brand awareness, and improving customer satisfaction to achieve profit maximization.</p> Signup and view all the answers

<p>Achieving 'right first-time' is important because it minimizes the need for rework, saving time and resources.</p> Signup and view all the answers

<p>Lack of financial security due to no guaranteed income.</p> Signup and view all the answers

<p>Paid tasks are performed in exchange for income, while unpaid tasks do not provide any financial compensation.</p> Signup and view all the answers

<p>Loading is extra pay to compensate casual employees for their lack of access to entitlements.</p> Signup and view all the answers

<p>Pro-rata benefits are a proportionate amount of normal full-time benefits based on hours worked.</p> Signup and view all the answers

<p>They are often paid less than if they were fully qualified.</p> Signup and view all the answers

<p>Voluntary contributions aim to enhance community welfare without financial compensation.</p> Signup and view all the answers

<p>Freedom and flexibility to work where and when one chooses.</p> Signup and view all the answers

<p>Apprenticeships provide training while working alongside experienced employees.</p> Signup and view all the answers

<p>Struggling with motivation may be a significant challenge.</p> Signup and view all the answers

<p>Loading helps casual employees manage financial uncertainty due to lack of entitlements.</p> Signup and view all the answers

<p>They might not earn any money unless they have insurance.</p> Signup and view all the answers

<p>Flexibility in hours and location can enhance personal productivity.</p> Signup and view all the answers

<p>To contribute positively to the community without financial gain.</p> Signup and view all the answers

<p>It allows for practical work experience while developing necessary qualifications.</p> Signup and view all the answers