VCE VET Business flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Sole trader

A business owned and operated by one person. The owner keeps all profits but has unlimited liability, meaning personal assets can be used to pay business debts.

Unlimited liability

The legal position where an owner is personally responsible for all business debts, so personal assets such as a home may be sold to satisfy creditors.

Partnership

A business owned by two to twenty people who share capital, profits and losses under a partnership agreement, usually with unlimited liability unless some partners are limited.

Company (Pty Ltd)

A proprietary company is a separate legal entity with limited liability, owned by shareholders and managed by directors; it must have 'Pty Ltd' in its name and cannot raise funds from the public.

Business life cycle

The stages a business passes through: start-up, growth, maturity, decline and renewal or closure. Each stage changes finance needs, staffing and risk.

Stakeholder conflict

A situation where satisfying one stakeholder group, such as shareholders wanting higher profit, reduces the wellbeing of another group, such as employees facing redundancies.

Australian Consumer Law

National law prohibiting misleading or deceptive conduct and guaranteeing consumer guarantees on goods and services, including acceptable quality, fitness for purpose and clear title.

GST registration threshold

A business must register for GST once its annual turnover reaches $75,000; registered businesses charge 10% GST on taxable supplies and claim credits on purchases.

Marketing mix (4Ps)

The four controllable elements of a marketing strategy: Product (features and branding), Price (pricing method), Place (distribution channel) and Promotion (advertising and communication).

Primary market research

Data collected first-hand for a specific purpose, such as surveys, interviews, focus groups or observation, giving current and relevant but often costly information.

Secondary market research

Data already collected by others, such as Australian Bureau of Statistics figures or industry reports; it is cheaper and quicker but may be outdated or not specific.

Income statement

A financial report showing revenue minus expenses over a period to calculate profit or loss, helping owners judge profitability and compare performance across periods.

Accounting equation

Assets = Liabilities + Owner's Equity. It underlies the balance sheet, showing that what a business owns equals what it owes plus the owner's claim.

Break-even quantity

Fixed costs divided by the contribution margin per unit (selling price minus variable cost per unit); it is the number of units that must be sold to make zero profit.

Contribution margin

Selling price per unit minus variable cost per unit. It shows how much each sale contributes towards covering fixed costs and then generating profit.

Margin of safety

Actual or expected sales minus break-even sales, expressed in units or dollars; it indicates how much sales can fall before the business makes a loss.

Scored assessment

In VCE VET Business, a graded judgement of student performance against a published scoring plan, awarded on a four-level scale from very high to low.

Competency-based assessment

Assessment judged as competent or not yet competent against unit of competency standards; a student must be competent in all required units before receiving a study score.

Validity in assessment

The extent to which an assessment task measures the performance requirements and knowledge evidence it is intended to measure, rather than unrelated skills.

Reliability in assessment

The degree to which an assessment produces consistent results across different assessors, occasions and student cohorts, supported by clear rubrics and moderation.

Fairness in assessment

The principle that all students face comparable conditions and that reasonable adjustment removes disadvantage caused by disability or circumstances without lowering the required standard.

Scoring plan

The published document specifying which assessment tasks are scored, the maximum marks for each task and how marks combine into a total study score.

Marking rubric

A grid of criteria with descriptors of observable performance at each grade band, used to convert evidence into marks consistently and to explain results to students.

Direct observation

An assessment method where the assessor watches a student perform a real or simulated workplace task and records evidence against specified criteria at the time.

Portfolio evidence

A collection of student work products, such as business plans, spreadsheets or reports, gathered over time and judged against unit requirements and scoring criteria.

Authentication of evidence

The process of verifying that submitted work is the student's own, using signed declarations, supervised conditions, drafts and version checks to prevent plagiarism.

Reasonable adjustment

A modification to assessment conditions, such as extra time or an alternative format, that removes disadvantage while maintaining the integrity and standard of the task.

Special provisions

Approved arrangements for students with disability or illness during scored assessment, changing how the task is delivered rather than what performance standard is required.

Moderation

A quality process that compares assessment judgements and score distributions across providers to ensure consistent standards and to identify marking that needs review.

Assessment evidence trail

Documentation kept by the assessor, including annotated student work, rubrics, results records and feedback, demonstrating that judgements are defensible and reproducible.

Performance requirements

The specific skills and tasks listed in a unit of competency that a student must demonstrate, together with the knowledge evidence, to be judged competent.

Feedback against criteria

Comments given to a student that link performance to specific rubric criteria, explaining why a grade was awarded and what evidence would justify a higher band.