Secondary 4 Business, Accounting and Financial Studies

Economic activities organised for profit, providing goods or services to meet customers' needs.

External factors affecting business decisions, including economic, technological, cultural, geographical, social, political and legal factors.

Industries providing services, such as retail, catering, finance and logistics; over ninety per cent of Hong Kong's GDP.

How economic conditions such as growth, interest rates, inflation and unemployment affect business.

How technological advances change production and consumption, such as online shopping and mobile payment.

How government policies and laws regulate business, such as business registration, labour laws and licensing.

How social values, lifestyles and cultural trends shape consumer behaviour, such as the demand for healthy eating.

How location and the natural environment affect where and how firms operate, such as footfall and rent.

A framework analysing a firm's strengths, weaknesses, opportunities and threats; the first two internal, the last two external.

Smaller firms making up about ninety-eight per cent of Hong Kong enterprises and a vital pillar of the economy.

A business owned and run by one person who enjoys all profits and bears unlimited liability.

A business co-owned by two or more persons under Hong Kong's Partnership Ordinance.

A separate legal entity incorporated under the Companies Ordinance; shareholders' liability is limited to their shares.

The legal duty of an owner or partners to settle all business debts with personal assets.

Shareholders' liability for company debts is capped at their investment or the shares held.

A limited company is legally separate from its shareholders and can own assets, contract and sue in its own name.

An investor holding shares in a company, entitled to dividends and shareholder rights.

The registration every business in Hong Kong must complete with the Inland Revenue Department, including sole proprietorships and partnerships.

The main law governing the incorporation and operation of companies in Hong Kong.

A large enterprise operating in more than one country, with huge scale and a global outlook on resources.

The moral standards a business should follow, such as honesty, fairness and keeping promises.

The duty of a business, beyond legal requirements, to look after society's wellbeing and answer to stakeholders.

Individuals or groups affected by business decisions, e.g. shareholders, employees, customers, suppliers, the community and the government.

A situation where interests and moral principles conflict and the choice is difficult.

A systematic process: identify the problem, gather facts, assess the impacts of options, decide and review.

The basic duty to offer quality products, create jobs and earn reasonable profits.

The voluntary duty to give back to society, e.g. donations, sponsorship and volunteering.

Practices that violate moral standards, whether legal or illegal, such as misleading advertising or exploiting workers.

The trust and image a firm builds over time — an intangible but highly valuable asset.

A situation where personal interests clash with professional duties, breeding unethical decisions.

The concept that a sum of money today is worth more than the same amount in the future.

The value today of a future sum after discounting.

The total value of today's principal after growing at compound interest for a number of periods.

Interest charged on the principal only: interest = principal × annual rate × years.

Interest earned on both principal and accumulated interest, so growth accelerates.

Converting a future amount into present value at a given rate — compound interest in reverse.

Total present value of cash flows minus the initial outlay; a positive figure suggests a worthwhile investment.

The stated rate of return before adjusting for inflation.

The return after deducting inflation, reflecting real growth in purchasing power.

A sustained rise in prices that erodes the purchasing power of money.

Managing income, spending, savings and investments to achieve life goals.

A plan of expected income and spending used to control consumption and hit saving goals.

Savings for emergencies such as job loss or illness, usually three to six months of expenses.

The basic trade-off: the higher the expected return, the greater the risk taken.

A deposit held for a fixed term, earning a higher rate than savings accounts.

A debt instrument paying periodic interest and repaying principal at maturity.

Certificates of company ownership paying dividends, but with volatile prices and no guaranteed return.

Spreading funds across assets, industries and markets to reduce overall risk.

A pooled investment managed by professionals across a basket of assets.

Hong Kong's retirement scheme: employees, employers and the self-employed each contribute five per cent of relevant income.

The process of achieving organisational goals through planning, coordinating and using resources.

The management function of setting goals and designing action plans to achieve them.

The management function of allocating tasks, grouping work and assigning resources, authority and responsibility.

The management function of directing, motivating and communicating with employees.

The management function of measuring performance against standards and correcting deviations.

The principle of dividing work so employees specialise and efficiency rises.

The principle that each employee receives orders from only one superior, avoiding conflicting instructions.

The principle that activities with the same objective are coordinated under one plan.

The principle that the power to give orders must match the duty to answer for outcomes.

The six functions supporting operations: human resource, financial, operations, marketing, information and risk management.