Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

BM 3/4 > AOS 1 > Flashcards

AOS 1 Flashcards

1
Q

Sole trader

A

Business that is run and owned by one person

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Sole Trader Advantages

A

Low cost and simple to start/ operate, complete control, owner gets all of profits, less government regulations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Sole Trader Disadvantages

A

Unlimited liability, requires owner to operate, difficult to get finances to expand, owner needs have ability to perform variety of tasks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Unlimited liability

A

When business owners are responsible for business debts which occur, therefore requiring them to pay the debt out of pocket. (sole traders, partnerships)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Liability

A

Business owners are not responsible for the debts a business occurs, shareholder will only lose the money they paid for shares (private/ public limited company)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Partnership

A

A business that is owned by 2 to 20 people

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Advantages of a partnership

A

Low start up/ operational costs, shared workload, greater access to resources, minimal government regulations, no tax on business profits (only personal income tax)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Disadvantages of a partnership

A

Personal unlimited liability (including partners debts), shared profits/ decision making, difficulty finding suitable partner

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Incorporation

A

When a business changes from a sole trader or partnership to a different ownership structure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Private Limited Companies

A

Businesses with at least one shareholder, and a maximum of 50 non employee shareholders, and at least one director

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Private Limited Companies Advantages

A

Limited liability, access to capital, easy to transfer ownership/ grow, company tax rate is lower than personal income tax rate, experienced management (board of directors)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Private Limited Companies Disadvantages

A

Costly to form, company is taxed on profits and dividends, requirements to produce reports for audits, rapid growth may lead to lack of productivity/ failure,

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Public Limited Companies

A

Company with at least one shareholder, who’s shares are sold and traded on the stock market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Public Limited Companies

A

Limited liability, greater access to capital by selling shares, easy to transfer ownership/ grow, company tax rate is lower than personal income tax rate, experienced management (board of directors)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Public Limited Companies Disadvantages

A

Costly to form, company is taxed on profits and dividends, requirements to produce reports for audits, rapid growth may lead to lack of productivity/ failure, stricter laws and regulations due to size

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Liquidator

A

A professional who manages selling of company assets, paying debts and distributing funs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Social Enterprise

A

Business that produces goods and services for the market, but operates with the goal of fulfilling a social need

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Social Enterprise Advantages

A

Open up new markets (that commercial business don’t operate in), meeting social needs can have positive impact on market share/ profits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Social Enterprise Disadvantages

A

Difficult to get capital to start/ costly to operate, difficult to reach both financial and social goals

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Government Business Enterprises

A

Government owned and operated business which have the goal of making a profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Government Business Enterprises Advantages

A

Able to access areas commercial businesses won’t, can operate with independence from government

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Government Business Enterprises Disadvantages

A

Business may be politically interfered/ business decisions may be politically motivated, management may be less effective/ productive, less accountability/ productivity due to government ownership

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Government Business Enterprises Examples

A

Australia Post, VicRoads

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Partnership examples

A

Family-owned Restaurants, Hairdressers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Sole trader examples

A

Freelance Graphic Designer , Local Café, Independent Plumber

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Private Limited Company Examples

A

Cotton On, Boost Juice, Typo, Visy

27
Q

Public Listed Company Examples

A

BHP, Woolworths, Commonwealth Bank, Qantas

28
Q

Social Enterprise Examples

A

HoMie (A streetwear brand in Melbourne that provides clothing and training for people experiencing homelessness.), Streats, The Big Issue, Thankyou group

29
Q

Business Objectives

A

Make a profit, increase market share, improve efficiency, improve effectiveness, fulfil a market need, fulfil a social need, meet shareholder expectations

30
Q

Making a profit

A

Money made by a business after expenses, most common goal

31
Q

Increase market share

A

Increase in a proportion of total sales in a market, can be achieved by increasing the number/ range of products

32
Q

Improve Efficiency

A

How well a business uses its resources to achieve objectives, can be improved by using latest technology/ skilled employees

33
Q

Improve Effectiveness

A

Degree to which a business achieves its objectives

34
Q

Fulfil a Market Need

A

Meeting a gap in the market, can be done by offering new product

35
Q

Fulfil a Social Need

A

Producing a good or service with the goal of helping/ making society better
Examples: Providing opportunities for unemployed

36
Q

Meeting Shareholder Expectations

A

Meeting investors goals (generally profit), investors make money when business grows

37
Q

Setting business objectives

A

Business objectives must be relevant to businesses
GBE: Deliver social, economic, environmental benefits
PTY LTD: Make the best product
PLC: Improve financial wellbeing of people, businesses and communities
Social Enterprises: Make profit to reinvest into community

38
Q

Developing Business Strategies

A

How a business attempts to achieve objectives
Goal: Increase Market Share
Strategies: Target new customers, increase sales through promotion, increase distribution outlets, improve quality/ performance of products

39
Q

Analysing Performance

A

How well a business went in achieving its objectives, can be measured through KPI’s , successful strategies can be continued

40
Q

Vision Statement

A

What a business intends to achieve

41
Q

Stakeholders

A

Groups and individuals who interact with the business and have a vested interest in it’s activities

42
Q

Managers

A

Person who has responsibility for business successfully achieving the businesses objectives

43
Q

Shareholders

A

Name given to people who own a business

44
Q

Owners

A

The people who run a business (sole traders, partners, shareholders)

45
Q

Employees

A

People who work for a business, in return for financial payments

46
Q

Customers

A

People who purchase goods and services from a business

47
Q

Suppliers

A

Businesses or individuals who provide the raw materials a business requires to operate

48
Q

General Community

A

The people surrounding a business and it’s environment

49
Q

Corporate social responsibility

A

When a business goes beyond legal obligations, to ensure the businesses practices don’t impact the environment, its employees and customers

50
Q

Autocratic

A

Leader has full control over all aspects of business, however does not listen to employees and their feedback

51
Q

Autocratic Strengths

A

Direction and procedure are clear,

Management has full control,

Clear employee roles and expectations,

Efficient because there is no discussion or consultation​​

52
Q

Autocratic Weaknesses

A

No employee input (ideas not shared.​)

Job satisfaction decreases no responsibility for low level staff.​​

Potential for conflict increases.​​

Us and them mentality may develop

53
Q

Persuasive

A

Where a manager attempts to convince employees that management way is best

54
Q

Persuasive Advantages

A

Managers can gain trust and support

Workers believe feelings are being considered may approach tasks more positively.​​

Instructions and explanations remain clear and constant.​​

55
Q

Persuasive Disadvantages

A

Attitudes remain negative as employees fail to give their full support to management​​

Communication is poor

Employees remain frustrated, no input in decision making

56
Q

Consultative

A

Manager recognises importance of good relationships among employees and listens to staff on issues before making decisions
(most effective when new operating procedure is introduced)

57
Q

Consultative advantages

A

Allows for a greater variety in ideas (employee input)

Employees have some ownership in the way the organisation is run
(more interest in it)

Decisions are fine tuned and discussed prior to their implementation.​​

​​

58
Q

Consultative disadvantages

A

Time consuming (talking to employees)

Some issues that are decided upon are not suitable for widespread consultation

When a number of ideas are shared , some are ignored or overlooked.​​

​​

59
Q

Participative

A

Manager consults with employees, but also share decision making authority with employees

60
Q

Participative Advantages

A

Communication is two way

Employee relations are positive (less likely to be disputes)

Employees feel more involved

Employees have greater opportunity to acquire more skills

Higher levels of trust

61
Q

Participative Disadvantages

A

Time consuming/disagreement with so many different views

In some cases employees may be given too much power.​​

People may not want to be involved in the decision making process​​

62
Q

Laissez-Faire

A

Employees are responsible for workplace operations

63
Q

Laissez-Faire Advantages

A

Employees feel sense of ownership

Communication is completely open

Continual encouragement for employee creativity

64
Q

Laissez-Faire Disadvantages

A

Complete loss of control for management

May be less efficient as their is no clear directive/ procedure to achieve business objectives

Can cause personal conflict between employees

BM 3/4 (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions