Stage 5 Commerce
Students learn about:
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Decisions affecting the
quality of our lives
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Consumer
Financial
Business
Employment
Legal
Environmental
Students learn to:
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Investigate the scope of
Commerce and choice
Identify and classify
examples of different
types of commercial and
legal decisions that
people make on a daily
basis
Recognise the
consequences of
commercial and legal
decisions on the quality
of our lives and the
environment
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Write definitions for
the following terms
and find a picture to
illustrate each:
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Goods
Services
Needs
Wants
Consumers
Personal wants
Collective wants
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This video gives
you an overview of
various factors that
you may/not be
aware of when
making a
purchasing decision
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What things that
have you consumed
today?
Are they a good,
service, need or
want?
Commercial
Personal
Consumer decisions
Should I purchase
new clothes or save
money for a
computer ?
Legal decisions
How can I exercise
my legal rights as a
consumer ?
Financial decisions
Where should I
invest my savings ?
Business decisions.
Is there a need I
could meet by
setting up a
business ?
Employment
decisions What
should I do for work
experience ?
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The main types of employment decisions a person makes:
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Number of hours worked / number of hours for leisure activities.
Sector to work in.
Run business or work for someone.
Adapt to change in the job market.
How employment decisions impact on a person’s quality of
life:
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Number of hours with the family.
Friendship time.
Leisure activities.
Amount of money earned.
Outline 5 examples of flexible
working practices and the advantages
of each way of working.
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Income
Labour
Wages
Enterprise
Profit
Savings
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The key financial decisions consumers need to
make and the importance of the decision.
◦ Spend money – to satisfy needs and wants
◦ Save money –
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Personal satisfaction and security
Superannuation and long term investment
Buy expensive item
Savings history to get a loan
Develop a poster on preparing a
budget OR options for paying
(cash, credit card, direct debit etc)
OR making investment decisions
OR deciding how to receive income
(cash, fringe benefit, salary sacrifice)
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Credit Card
Direct Debit
Cash
Debit Card
Superannuation
Budgets
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Casual
Part-time
Flexible work hours
FIFO (fly in fly out)
Shift work
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Protect consumer rights.
Responsibility of suppliers.
Contract – when purchase item enter contract
with retailer. Right to get what paid for.
Access the NSW Office of Fair
Trading website
www.fairtrading.nsw.gov.au.
Outline the types of legal advice
this site provides for consumers.
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choosing what to
buy
◦ types of goods and
services
◦ different brands and
products
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choosing where to
buy
◦ range of locations
and sources
◦ types of retail outlets
◦ internet purchasing
and mail order
◦ locally, interstate,
globally
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Comparison shopping
Retail outlet
E-commerce
Local
Interstate
National
Global
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Financial requirements
Business skills
including technology
Employee requirements
Legal structure –
determines liability –
sole trader,
partnership, company,
franchise, cooperative.
Production –
where/how will it be
produced
(primary/secondary/ter
tiary/quaternary/quina
ry)
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Marketing – Product
(what consumers
want), Price (what
competitors charge
and what consumers
willing to pay),
Promotion (how
market), Place (where
sell).
Quantity to produce –
consider demand.
Distribution – shop
front, direct mail,
internet.
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Primary
Secondary
Tertiary
Quaternary
Quinary
Product
Price
Place
Promotion
Liability
Family
decisions
Legal decisions
How can I
exercise my legal
rights as a
consumer ?
How do my
actions impact
upon others in
my
household?
Social life
decisions.
How will I
respond
to
pressures
from my
peers?
Decisions based on
values and beliefs.
What are my
attitudes towards
people from different
cultural backgrounds
Health decisions.
How can I stay fit
and ensure that I
get enough
exercise ?
Learning/educat
ion decisions.
What subjects
should I choose
for Year 11 and
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Environmentally aware consumers ask
themselves the following questions:
◦ Does the production or distribution process of this
product harm the environment?
◦ Does the use of the product harm the environment?
◦ Is this product recyclable?
Brainstorm the strategies
consumers can use to minimise
the impact of their consumption
decisions on the environment
Students learn to:
 research consumer information from a variety of
sources that may include the internet, advertising
material, specialist magazines and comparison
shopping surveys
 select and apply appropriate criteria to rank
alternative purchasing options
 explain the factors influencing decisions to buy
locally, regionally, interstate or globally, retail or
wholesale or on the internet
 research and report on comparison shopping
processes and decisions using word processing
applications
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Consumers purchase two main types of
goods –
◦ 1. Durable goods – goods that have a long lifespan and do
not need to be replaced frequently. For example a washing
machine, furniture and motor vehicles.
◦ 2. Non-durable goods – goods that are purchased
frequently and have a short lifespan. They are less
expensive and bought with cash or EFTPOS. For example
food and pens
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Another way of naming or grouping goods is
to look at the relationships between them.
◦ Complementary goods – a good that is generally
consumed with another good. For example tomato
sauce and meat pies.
◦ Substitutes – a good that can be purchased as an
alternative to another good. For example butter
instead of margarine.
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Intangible goods provided to consumers by
individuals or firms.
Some like education are transferable from
one person to another.
Some are consumed at the point of sale like
watching a concert so are not transferable.
Make a list of
the services
you consume
on a weekly
basis.
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Divided into producer or consumer services
based on who the consumer is:
◦ Those consumed by businesses like transport are
called producer services.
◦ Those individuals consume in their everyday lives
like health are consumer services.
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Notable examples include Nike, Coke, Quik silver, Microsoft,
Apple
Brand names can become so powerful they replace the
original or generic name for the product for example
vacuuming being referred to as hoovering.
Generic and own-label goods include ‘no frills’. They boost
the reputation of supermarkets and reduce the power of
manufacturing companies. They often cost less and are of
comparable quality to the branded alternatives.
Brand
Is this good
a need or a
want ?
Is this good
durable or
non-durable
?
What is a
substitute to
this good ?
Select 10 goods you would
purchase during a typical
week and then copy and
complete the table as shown
above.
Is this a
generic /
own – label
good ?
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Impulse buying – where you purchase a good
or service on the spur of the moment and
later discover you cannot afford the product
or do not really need it.
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Asking the following questions enables you to
avoid impulse buying.
What exactly are my needs ?
Can I afford this ?
Have I compared prices ?
What after-sales service is available with the product ?
What are the features of the product and will it do all I
want it to do ?
◦ How safe and reliable is the product ?
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Design an educational pamphlet to outline
the steps consumers take to avoid impulse
buying. Include pictures and illustrations to
help get your message across.
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Retail stores can be placed in a hierarchy based on the types of
goods they provide and how far consumers need to travel to get
to them.
◦ At the top are large regional shopping centres and stores
selling expensive consumer durables (sporting equipment)
◦ Then come planned shopping centres like Westfield which
provide one stop shopping and a carpark.
◦ Independent retailers and corner stores have largely been
replaced.
Select a product sold in a range of
locations and from different
sources and report on comparisonshopping processes. Include a
picture of the product.
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General (corner) stores – small retail outlets that focus on selling
everyday convenience items like milk and bread.
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Supermarkets – (Coles) large self-service stores that sell a wide variety
of food and other household products.
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Department stores – (David Jones) retail outlets divided into a number of
smaller units or departments selling a wide rage of goods and services.
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Discount stores – (Big W) offer a range of goods through specific product
departments which provide cut price promotions and value for money.
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Independent specialty stores – (The Bike Barn) usually owner operators
that focus on selling a specific product.
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Category killers – (Toys ‘R’ Us) retail outlets often operating out of large
warehouses that dominate the sale of one particular product type.
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Franchises – a type of retailing that involves selling the rights
to use a business name, image or management system.
Periodic markets – large numbers of sellers in an informal
market setting open only on the weekend and providing
bargain and bulk-orders to save money.
Shopping strips – traditional shopping centres consisting of a
range or retail outlets lining the main street of a town or
suburb.
Planned centres – (Macquarie Centre) retail outlets that are
planned, operated and managed as a single unit. They
contain a couple of large anchor stores and a wide range of
speciality stores under one roof with easy car parking.
Develop a mind map
of the different types
of retail outlets.
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Using the following website
◦ www.castletowers.com.au (Castle Towers Shops)
and your own knowledge
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Write a report outlining the key differences
between planned centres (Castle Towers) and
other common retail formats (Knightbridge
shopping centre). Comment on the following
features:
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How to get there and access to car parking.
Number and variety of retailers.
The format / layout of the centre.
Services and entertainment provided.
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Anyone with a computer and internet access
can purchase a range of goods from around
the world and have them delivered direct
from the warehouse or manufacturer to
almost any location in the country.
Select one online
shopping site and
answer the following
questions:
a) How easy is this
site to use?
b) What types of
goods are
available from
this site?
c) How are the
goods delivered,
how long does
this take and
what are the
delivery charges?
d) What payment
options are
available?
e) How secure is the
site?
Present your findings
in the form of
a report.
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Direct marketing is where goods are sold
directly to a customer rather than through a
retail outlet.
Direct marketing includes mail order (sending
customer offers, advertising or catalogues)
and telemarketing (phone sales) and doorto-door sales.
Design a
pamphlet or
power point
presentation
informing
consumers of the
advantages and
disadvantages of
either direct
marketing or
internet
shopping.
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Consumers can choose whether to purchase locally
manufactured or imported goods (goods produced
overseas).
Improvements in communications technology and road,
rail and air transport make it easier for consumers to
purchase products regionally or from interstate.
In the mid-1990s Australian labelling was changed to
make it easier for customers to identify products made in
Australia
◦ To be labelled ‘Product of Australia’
it needs to be produced and processed
within Australia
◦ To be labelled ‘Made in Australia” the
product is manufactured in Australia
but contains imported ingredients.
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Guides for making a decision include:
◦ The price of the good or service
◦ The quality of the good or service
◦ The service provided including warranties and
after-sales advice.
◦ Your ethical perspective – when we purchase
imported goods there is a flow of money out of the
country to pay for them.
access www.choice.com.au
and
www.consumersonline.gov.au
and investigate ethical
consumerism.
Students learn about:
 Key factors affecting consumer decisions
◦ Finance, price, marketing, age, gender, convenience,
service
◦ Environmental considerations
Students learn to:
 Explain the factors affecting consumer decisions.
 Examine factors which contribute to changes in
behaviour and practices by individuals and
organisations.
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Can I obtain finance to help me make this
purchase ?
◦ Funds come from your savings, a bank or financial
institution.
◦ Some stores offer store credit cards and hire
purchase agreements (funds lent to customer by
the store).
◦ Your disposable income, the amount of money you
have to spend on goods and services. Disposable
income (net income) =
gross income (total income) - tax
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What is my budget?
Can I afford this good?
◦ Obtain a minimum of three quotes before buying an
expensive good or service.
◦ Don’t be rushed into making purchases.
◦ Be aware of hidden costs like installation charges,
service costs and postage.
Potato chips
are available
in the
following
package
weights and
prices. Use
the unit
pricing
method to
work out
which is the
best value?
a) 500g
packet
$2.50
b) 750g
packet
$3.60
c) 1kg box
$5.30
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The five P’s are used to alter the buying
behaviour of consumers.
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Price,
Position,
Product,
Promotion and
Place
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Consumers wants change as they get older.
Babies
Secondary
School
Primary
School
Toddlers
Pre
schoolers
Write
down two
wants
relevant
for each
of the five
age
groups
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Boys and girls often purchase different types
of products.
Boys
Girls
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Many Australians use convenient shopping
options like online shopping and ebay.
Using word art list words to show
options Australians could use to
purchase a computer.
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Consumers are demanding a more personalised shopping
experience.
Businesses have responded by offering a range of mobile
domestic services including pet grooming and gardening
services. These services are available seven days a week and
travel to a customer’s home or workplace at a time the
customer chooses.
Using the internet
find the name and
contact details of a
mobile pet grooming
and gardening
service.
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Consumers are considering the
environmental impact of their purchases.
Manufacturers and retailers are selling
‘environmentally friendly’ products
manufactured from recycled materials.
Using pictures from the
internet create a collage
of factors that influence
consumer decisions.
Students learn about:
 The need for consumer protection – scams and
rip-offs
 Features of a simple contract
 Legal rights and protective legislation for
consumers
 Organisations that provide assistance for
consumers
◦ Government departments and
organisations – state and federal
◦ Independent organisations
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The process of consumer redress
◦ Remedies and their outcome
Students learn to:
 Use the internet to research scams and rip-offs
 Identify the methods used in scams and rip-offs
and analyse the ethics involved
 Identify the features of a simple contract using at
least one legal case study.
 Investigate consumer laws and appropriate
processes for consumer protection.
 Work collaboratively to gather, interpret and
present information on the protection provided
by consumer protection agencies and
independent bodies.
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Unconscionable conduct – dishonest and
unfair conduct by individuals or businesses
providing goods and services to consumers.
◦ Misleading advertising: bait and switch strategies –
attracted to store by low prices, once in the store
told sale stock has run out and convinced to buy a
more expensive item.
◦ Fake price reduction – when a retailer claims a price
was $75.00 and is now only $50.00 they must
guarantee the original selling price is accurate and
that goods were sold for that amount.
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Access www.scamwatch.gov.au and
http://fido.asic.gov.au
◦ Choose one scam from the website – pyramid schemes,
amazing offers scams, medical scams, internet scams,
scam games – and explain how it is carried out
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Access http://fido.asic.gov.au
◦ Investigate the process of complaining about a financial
scam by accessing http://fido.asic.gov.au and going to
the ‘how to complain’ page
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Report a scam by participating in the Gull Awards
and emailing their entry to:
gullawards@asic.gov.au or fax hardcopy entries
to ASIC
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A contract is any written or spoken agreement to
buy or sell goods and services.
Both the buyer and seller have important rights
and responsibilities enforced by law.
Each person knows the other individual or
business involved in the contract will perform
their part of the agreement. For example when a
seller hands over a good the seller is responsible
for ensuring the good is of reasonable quality
and fit for the purpose for which it is sold.
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Legal object – the purpose of the contract must be legal.
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Possible to perform – it must be possible for both parties to carry out
the contract.
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Consideration – both parties must benefit in some way from the
contract.
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Legal right – people have a legal right to enter into a contract unless
they are under 18 or are mentally unfit at the time of signing.
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Intention – both parties must have intended to enter a legally binding
contract.
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Offer and acceptance – there must be an offer by one party that is
unconditionally accepted by the other party.
A contract has three
elements:
1.an offer – This may be
made when you decide
to buy something and
offer to pay a price.
2.an acceptance – This
may be done by the
seller agreeing to supply
the goods or services.
The acceptance may be
in words or an action.
3.consideration – this is
the value (usually
money) that is given in
return for the goods or
services offered to be
supplied or acquired. It
may also be the promise
to pay at a later date.
Go to
www.dft.nsw.gov.
au/consumerhelp
What should
parties consider
before signing a
contract?
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Go to www.fairtrading
.nsw.gov.au/consumers.
◦ What is a lay–by agreement?
◦ How can a lay-by be terminated?
◦ Look up the case study. Summarise it using dot
points
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They come with a basic consumer guarantee.
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Goods must comply with product information and safety standards.
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It is illegal for retailers to mislead you about products or use high-pressure selling
tactics.
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You are forming a contract. For example, when buying a car or TV.
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Contracts may be in the form of a receipt, invoice or other document outlining
terms and conditions such as deposits, cancellation fees, warranties, delivery and
payment arrangements.
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It is your responsibility to read and understand the terms and conditions of
contracts.
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Keep a copy of receipts, dockets, invoices or contracts in a safe place in case you
want to return, repair or exchange the goods.
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http://www.moneystuff.net.au/Default.aspx?tabid=94
Go to Teachers Resources. Then Money Stuff Video Resources.
Then Buying Stuff.
Activity 1: Marketing and Selling and
Activity 2: How do we pay for goods and services
Read introduction
Download the video and watch
Complete table
Activity 3: Shopping wisely
Read introduction
Download the video and watch
Read the article
Write your own set of shopping tips for buying a CD player.
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1.
2.
Key federal government laws –
Trade Practices Act 1974. This act aims to improve the
wellbeing of Australians. It deals with issues like
anticompetitive and unfair practices, product safety,
conditions and warranties and actions against
manufacturers and importers.
The Prices Surveillance Act 1983. The ACT gives the ACCC
power to monitor and report on the prices, costs and profits
of companies and government authorities.
Select one of the laws above. Use the internet
perhaps (NSW Office of Fair Trading) to find out:
a) When and why the law was developed.
b) Which level of government is responsible for it.
c) The penalties for breaking this law.
d) The type of protection it provides for
consumers.
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The NSW Office of Fair Trading outlines four
important consumer rights:
1. Goods and services should be safe and of
merchantable quality (fit for the purpose for which a
good is bought).
1. You have the right to be protected from misleading
and deceiving practices.
1. Information provided with goods and services should
be accurate and give details of price, content and
weight of package as well as care instructions.
1. Safety instructions should appear on dangerous
products.
Summarise these in
your own words.
Discuss the rights and
responsibilities of
consumers in the
following situation:
Jan purchased a new
sleeping bag. The
washing instructions
read ‘Hand wash in
mild detergent and
warm water’. When
the sleeping bag was
washed according to
these instructions it
appeared to shrink
and lose its colour.
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Government departments and organisations
◦ State government authorities
 NSW Office of Fair Trading – advice about fair and ethical retail
practices.
◦ Federal government departments
 The Australian Competition and Consumer Commission handles
issues such as anticompetitive and unfair market practices,
mergers or takeovers of companies and product safety/liability.
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Australian Communications and Media Authority (ACMA)
www.acma.gov.au
Australian Competition and Consumer Commission (ACCC)
www.accc.gov.au
Consumer and Business Affairs Victoria
www.consumer.vic.gov.au
Consumer Affairs (NT)
http://www.nt.gov.au/justice/consaffairs/index.shtml
The Department of Broadband, Communications and the Digital Economy
(DBCDE)
www.dbcde.gov.au
Go to two of these
Fair Trading (ACT)
http://www.ors.act.gov.au/fairtrading/index.html
sites. Find out:
Fair Trading (NSW)
www.fairtrading.nsw.gov.au
1. What are the aims
Fair Trading (QLD)
of this government
www.fairtrading.qld.gov.au
organisation?
Fair Trading (WA)
www.docep.wa.gov.au
Office of Consumer and Business Affairs
1. What forms of
www.ocba.sa.gov.au
practical support
Office of Consumer Affairs and Fair Trading
does the authority
www.consumer.tas.gov.au
provide to
consumers?
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If you experience problems in dealing with a
government department you can contact the
ombudsman – an independent official
appointed to deal with complaints against
government departments or private
businesses.
Define the
term
ombudsmen
in your own
words.
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Australian Consumers’ Association
◦ A non-profit organisation that aims to provide
consumers with information and guidance about
goods, services, health and personal finances
◦ Conduct tests on products and publishes the test
results in a monthly magazine, CHOICE
Access www.choice.com.au
1. Describe the range of product reports available on
the website.
2. What are the current consumer product alerts.
3. Draw a mind map showing the range of campaigns
that the ACA is currently involved in.
4. Make a list of the other consumer services provided
by CHOICE and the ACA.
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Other organisations
◦ Kidsafe (the Child Accident Prevention Foundation
of Australia) A non-profit, non-government
organisation that provides information about the
safety of products in order to prevent the
unintentional injury or death of children.
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Community organisations
◦ Citizens’ advice bureaus
◦ Financial counsellors
◦ Legal centres
Consumer protection
organisations
Federal
government/state
government/independ
ent
Office of Fair Trading
State Government
ACCC
Federal Government
ACA
Independent – non
profit organisation
Type of protection
provided to
consumers
Using these websites
www.lawstuff.org.au,
www.consumersonline.gov.au.
add two more rows to the above
table.
1. Identify the
problem. Gather
relevant documents.
6. Contact a
court or tribunal.
They can make a
legally binding
decision.
However, this is
costly.
2. Contact the
business without
delay. Write to or
phone the
person you had
a problem with
or the manager.
5.Contact a
mediation/conflict
resolution service.
A mediator can
hear both sides of
the dispute without
bias and suggest
an acceptable
solution.
3. Contact the
relevant industry
association or
ombudsman.
4. Contact the state
government’s
consumer affairs
department. They
can inform you of
your rights and
suggest further
action to take.
Use simple clear
language and attach
copies of relevant
paperwork. (para1)
Provide a clear
description of the
problem. (para2)
Be aware of your
rights and
communicate them
clearly in your letter.
(para3)
Propose a solution
(paragraph 5)
Using this
letter as a
guide write a
letter of
complaint to
the
Department of
Fair Trading
(DFT) about
faulty goods.
This can be
made up of
something you
have bought
that was
faulty.
Access additional worksheet
on Consumer Redress on
Edmodo.
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Go to www.lawstuff.org.au
Select the topic shopping. Then read refunds, when can
goods be returned and lodging complaints.
Use the above website and the relevant power point
slides on consumer redress to develop an information
pamphlet on what redress is available to consumers and
how to go about getting assistance.
You could also visit the DFT site
www.dft.nsw.gov.au/consumerhelp
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Students learn about:
 Methods of payment.
◦ Cash, credit, cheque, direct debit, lay-by, electronic
funds transfer, book up.
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Methods of keeping records.
Changes over time and the impact of
technology.
Students learn to:
 Identify the criteria that should be considered when
determining methods of payment for different suppliers.
 Research the criteria to determine the most appropriate
methods of payment in a range of contexts.
 Identify the advantages and disadvantages of book up.
 Propose options that could be taken to improve financial
services available to Aboriginal and Torres Strait Islander
peoples and remote communities.
 Develop and use spreadsheets and databases to maintain
effective records and monitor monthly transactions
including running totals of cash, direct debit and credit
purchases.
 Identify how technology has impacted on the payment
process of businesses and consumers.
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Cash – money in coins and notes
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Credit –
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Direct debit –
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

Lay-by – a service that allows you to
purchase goods when you do not have
the money to buy them upfront.
Electronic funds transfer – (EFPTOS) all types of financial transactions
that are carried out electronically.
Book up – (informal credit given by a trader to consumers so that
consumers can purchase goods or services from the trader). Small
amounts of credit offered to customers so they can make purchases.
Customers provide in return a form of security like a debit card and pin
number.
Go to dictionary on the
dashboard. Complete the
list of definitions.


Cash
Advantages
Disadvantages
Immediate payment is
possible
A bulky way to pay for
expensive things
All shops accept
Not very secure
Credit
Advantages
Disadvantages
Money stays in the bank
earning interest until you
pay your bill.
Easy to overspend and
get caught in a ‘debt
trap’
Safer. Can be cancelled if
lost.
Can have high interest so
should be used with
caution


Cheques
Advantages
Disadvantages
Convenient and easy to
use.
Some retailers do not
accept.
Added security – can be
stopped when lost.
When deposited into an
account you need to wait
for it to be cleared.
Direct debits
Advantages
Disadvantages
A convenient way to pay
for household services.
You need to have
sufficient funds in your
account to cover.
Can be paid regularly
automatically.
Amounts paid may not
always be the same.


Lay-by
Advantages
Disadvantages
No interest charges.
Buy goods not needed.
Protects you against
future increases in the
price of the product.
Good must stay in the
store until full payment
has been made.
Electronic funds transfer
Advantages
Disadvantages
Cash free so minimises
security concerns.
Significant increases in
fraud cases recently.
Widely accepted.
Allows personal
information to be passed
onto others.

Book-up
Advantages
Disadvantages
Gives isolated
communities another
payment method.
Consumers lose the
freedom to decide where
they shop.
Can buy items when you
see them.
Difficult to access funds
when the shop is closed.
Complete each of the
7 tables above by
adding an extra row
– that is a third
advantage and
disadvantage for
each.


Use the ASIC booklet on book up or go to
www.fido.asic.gov.au. Click on ‘Financial Tips’,
then ‘Loans and Credit’.
Research to what extent book up is practised and
discuss its ethical and legal implications.
Buying a newspaper
 Paying for a haircut
 Paying the monthly electricity bill
 Purchasing a formal dress
 Paying for a car
 Buying groceries
 Paying your bus fare
 Paying off a mortgage
(housing loan) or personal loan.

Read the yellow
box.
Brainstorm and
develop a mind
map showing
measures that
could be used
by industry,
government
and indigenous
organisations
to improve the
banking
services
available to
these people in
remote areas.





Compare the amounts on withdrawals, cheques and deposits with the amounts on
your receipts or cheque butts. Check off all canceled cheques and deposits.
Insert the last balance shown on your bank statement
Add deposits.
Deduct all cheques and withdrawals.
Your adjusted balance should agree with the balance in your record book. If it doesn’t
check your addition and subtraction, then check to be sure you have entered all the
numbers correctly.
Note assume currency in
statement is $.
$
Open bank balance
Add Deposits
Less cheques and
withdrawals
Closing bank balance
Date
Detail
s
28/09/04
O/Bal
01/10/04
Deposit
s
Wdls
405.93
590.93
03/10/04
298.64
07/10/04
100.00
12/10/04
154.00
15/10/04
58.90
17/10/04
230.00
21/10/04
127.80
23/10/04
450.00
26/10/04
240.00
27/10/04
127.80
28/10/04
45.75
29/10/04
24.30
30/10/04
C/Bal
Balance

There are several financial statements that
are normally prepared by businesses. The
most common ones are:
◦ The profit and loss statement
◦ The balance sheet.
◦ The cash flow statement
The profit and loss statement
tells owners the difference
between revenue (income)
and expenses for a period
of time and whether they
have made a profit or loss.


The balance sheet is like a set of scales that
weighs the assets on one side and liabilities
and owner’s equity on the other. Owner’s
equity is basically what the business owes its
owners.
A cash flow statement
summarise the details
contained in a cash book.
It summarises the inflows
(income or deposits) and
outflows (cheques or
withdrawals) during a
period of time. This when
added to the bank balance
at the start of the period
enables the bank balance
at the end of the period
to be determined.

Cash Receipts
Less Cash Payments
= Cash surplus (deficit)
Add Bank Balance (start of period)
= Bank Balance (end of period)
Date
Item
Amount $
April 1
Received cash from Joe Blow
40
April 3
Paid electricity bill
200
April 4
Received cash from Y Xeric
20
April 5
Received cash from L Montague
80
Paid wages to G Jones
250
April 6
Received donation from A Smith
100
April 7
Paid Telstra (phone bill)
350
April 8
Received payment from A Sims
450
April 9
Received cash from L Hewitt
400
April 10
Paid Energy Australia (Electricity bill)
50
April 13
Received cash from M Forces
200
April 14
Paid Telstra (phone bill)
80
April 25
Received donation from J Walker
100
April 26
Paid wages to G Jones
250


Definition – an estimate of income and
expenses for a set period of time.
Reasons for making a budget
◦ To track money when you are working to a plan.
◦ To work out how to best use the money you earn.
◦ To plan for your changing needs and wants.
1.
Determine money coming in (income).
1.
Work out your fixed and variable expenses.
1.
Write down your weekly cash flow.
1.
Work out how much you can save.
1.
Identify how to cut back.
1.
Develop a cost benefit analysis to work out how to save for new wants.
1.
Shop around to find the best deal for the goods and services you need and want.
1.
Choose a suitable bank account.
1.
Learn how to record your pay slip.
1.
Decide how to keep records.
1.
Develop a weekly, monthly and annual budget.
1.
Monitor and change your budget at least once a month.
Activity
Describe how a selfcheckout works.
Outline the advantages
and disadvantages of selfcheckout supermarkets.

Technology in retailing and payment options is
continually developing and changing. Recent
developments include:
◦
◦
◦
◦
Online and internet shopping
EFTPOS and debit and credit cards
Smart cards
Self-checkout supermarkets
Activities
1. Develop a collage in word of recent technological
developments in retailing.
2. Use Microsoft publisher or word to create a newspaper
article titled ‘Shopping in 2050’. Include words and
illustrations.