1 Flashcards
Private Sector
The part of Australia’s economy that is operated by private individuals, groups, or institutions usually for the purpose of making a profit
Public Sector
The part of Australia’s economy that is owned and operated by the government
Sole Trader
A sole trader is a business structure owned and operated by a single person
Partnership
A type of business owned by 2 or more people
Private limited company (INC)
An incorporated business with at least 1 director and up to 50 selected shareholders. Shares are offered only to those people whom the business wishes to have as part owners.
Public listed company (INC)
An incorporated business whose shares are freely traded on the exchange. This means the members of the general public area are able to own part of a company by purchasing shares.
Social Enterprise
A revenue-generating business with primarily social objectives.
Government Business Enterprise
A profit driven business that is owned by the government but managed separately.
Overarching objectives
Vision statement - A statement that broadly expresses what a business aspires to become in the future
Mission statement - A statement that formally expresses the reasons for a business’s existence, its purpose and its method of operation
Making a profit
Businesses can increase their profit by increasing their revenue or reducing expenses ( or both)
Increasing market share
is the proportion of total sales in a market or industry controlled by a particular business, expressed as a percentage
Meeting shareholder expectations
Shareholders anticipate a return on their investment
Fulfilling a market need
by providing products and services which meet the desires of a group of customers with similar needs
Fulfilling a social need
is where a business aims to improve an area of the community that requires attention
CSR
The ethical conduct of a business beyond legal obligations to cover the social, economic, and environmental outcomes by stakeholders
Operations
Produces the goods or services that a business sells to customers
Human resources
Establishes and manages the relationship the business has with its employees including their hiring, training and termination
Sales and marketing
Promotes and sells the business’s goods or services to customers
Finance
Handles the monetary requirements of a business
Technology support
Technology support
Corporate culture
The shared values and behaviors practiced by managers and employees within a business
Official corporate culture
The shared values and beliefs desired by a business and expressed through elements such as formal rules and symbols e.g shared objectives and policies
Real corporate culture
The shared values and behaviours that are actually practiced by employees and managers and expressed through informal rules and habits e.g celebrations and hiring
Interpersonal
The manager’s ability to interact positively with employees to create and maintain professional employees, praising employees, get to know employees
business types
sole trader, partnership, social enterprise, government business enterprise, private limited company, public listed company
business objectives
make a profit, increase market share, meet shareholder expectations, fulfil a market need, fulfil a social need
areas of management
operations, sales and marketing, human resources, technology support, finances
management styles
autocractic, persuasive, consultative, participative, laissez faire
stakeholders
Customers
Employees
Investors and shareholders
Local communities
Suppliers
