aos 1: business foundations Flashcards

Question

perpetuity

Answer 1

life of the company can live longer than the directors

Answer 2

- more complex and expensive to establish - more reporting requirements to the government - shares cannot be traded freely

Answer 3

incorporated business whose shares are freely traded on a public exchange to an unlimited number of shareholders

Answer 4

* initial public offering (IPO) * purchase at share price on the ASX and earn dividends * limited (Ltd) * stricter government regulations

Answer 5

* limited liability * easier to raise capital by selling more shares to public *life of the company can live longer than the directors (perpetuity)

Answer 6

* highly complex and time consuming to establish * high cost in establishment * possible loss of control

Answer 7

business that exists primarily to fulfil a vision that BENEFITS THE COMMUNITY OR A SOCIAL NEED rather than shareholders

Answer 8

* sell goods and/or services in order to make a profit * can rely heavily on grants and donations * reinvest profits to help further social/environmental causes

Answer 9

aims to provide homeless and disadvantages youth with life skills, training and work experience

Answer 10

* meeting a social need can encourage community support=increasing profit * improved morale within the business as employees value the work they are doing

Answer 11

* difficult to obtain finance to begin the business * difficult to focus on financial AND social objectives

Answer 12

business that's owned by the government

Answer 13

* aim to fulfil government policies and offer services to the community * aim to make a profit * normally controlled by a board of directors

Answer 14

* aus post * VCAA * vic roads

Answer 15

* provides healthy competition to private sector businesses and can lower prices in the market * may be invest in areas that private companies may hesitate to invest

Answer 16

* strategic directions can change with changing governments * can be political interference

Answer 17

business owner must pay for any losses the business makes

Answer 18

if he/she doesn't have enough money, then he/she would have to sell his/her house or car to pay the debt

Answer 19

* sole traders * partnerships

Answer 20

provides protection to the people investing in your company (the shareholders)

Answer 21

* can only lose the amount that they invested in the company - no more * personal assets are protected (car, house, bank account)

Answer 22

* private limited companies * public listed companies

Answer 23

* make a profit * increase market share * improve efficiency * improve effective ness * fulfil a market need * fulfil a social need * meet shareholder expectations

Answer 24

goal that a business has set and is aiming to achieve in a specified period of time (clear specific measurable)

Answer 25

the amount of money remaining after expenses have been deducted from revenue

Answer 26

the proportion of sales that a business has compared to the total sales in the industry, expressed as a percentage

Answer 27

* to increase market share, means you steak it from someone else * increase market share doesn't always mean an increase in profit

Answer 28

how well a business uses its resources (time, raw materials, labour, machinery, technology etc) when producing a good or service

Answer 29

* allow the business to get products to the market quicker * reduce costs in the business (improving profits) * reduce the amount of waste, minimise impact on the environment * allow the business to lower prices for customers

Answer 30

the extent to which a business achieves its stated objectives

Answer 31

a business may set a target of increasing net profit by 10% in the coming year. if it doesn't increase profit by 10%, the business has been effective if profit is increased by 8%, then it hasn't been effective as it planned

Answer 32

specific group or industry that a business focuses selling its goods or services to

Answer 33

business fulfils market need by providing products and services which meet the desires of a group of customers with similar needs

Answer 34

needs or un met or unserved

Answer 35

business fulfils social need by improving the community and environment through its business activities

Answer 36

profit earns is used to support a cause (social need) eg, thank you water

Answer 37

those that have invested a sum of their own money into a business by purchasing company shares; they own a share of the business they expect to make a return on their investment through capital gains and dividends

Answer 38

value of the business increases

Answer 39

their share in the company profits

Answer 40

the actions that a business takes to achieve specific objectives

Answer 41

a strategy to achieve the objective of increased profit may be the introduction of a new product range

Answer 42

people or groups that interact in some way with the business and have a vested interest in its activities

Answer 43

strong connection to a business that leads to personal gain or benefit

Answer 44

* have different interests in the business * can come from inside the business or outside the business (internal environment or external environment)

Answer 45

* owner * manager * employees * customer * supplier * general community

Answer 46

invest funds into a business

Answer 47

coordinate employees and tasks to achieve business objectives

Answer 48

complete a business's work tasks

Answer 49

purchase and use a business's products or services

Answer 50

provide a raw materials resources

Answer 51

observe the impact of a business's operations

Answer 52

* may be owned by sole trader, partners or number of shareholders * varying levels of involvement in the day-to-day operations

Answer 53

* responsible for day to day operations * ensure the overall strategy of business is implemented

Answer 54

* work for business in exchange for money

Answer 55

* important for businesses to meet expectations of customers in order to remain competitive

Answer 56

* important for business to develop strong relationships with suppliers

Answer 57

* business is part of community and should look to benefit it

Answer 58

* establishing and fostering positive relationships with other stakeholders to enhance business reputation and performance * receiving a return on their investment, often through business growth, in the form of increasing in share price, dividends or profits

Answer 59

* being recognised for the achievement of business objectives * receiving bonuses from business owners for achieving business objectives * having opportunities to increase their status and engage in career advancement and promotion

Answer 60

* provision of long term job security * receiving fair pay and working conditions * having opportunities to engage ion personal and professional development, as well as training to advance their careers and receive promotions

Answer 61

* receiving high quality goods and services at affordable prices * engaging with businesses that are ethical and sustainable * receiving friendly and helpful customer service and assistance

Answer 62

* increasing their revenue * earning a profit from the raw materials and resources they supply * having reliable and honest relationships with businesses they supply

Answer 63

* observing business activities that lead to improvements un the community and environment * increasing the local employment rate and boosting the local economy

Answer 64

employees require safe working conditions and reasonable wages, but this will reduce the business's profit and dividends to shareholders

Answer 65

management could attempt to maintain profit and a high dividend to satisfy shareholders by raising the prices of products, this will upset customers who expect reasonably priced products

Answer 66

management might decide to cut cots by neglecting maintenance, which could possibly put members of community in danger

Answer 67

suppliers expect to be paid fairly and promptly, but they might reduce costs by using unethical and socially irresponsible practices, which can upset members of the community

Answer 68

management wishes to keep costs down to improve profit but suppliers providing ethical materials require higher prices to cover their costs

Answer 69

the attitude of the manager when making decisions and communicating with employees

Answer 70

* autocratic * persuasive * consultative * participative * laissez-faire

Answer 71

makes the decisions and tells the employees what tasks to perform

Answer 72

* manager has full control * one-way communication * centralised decision making

Answer 73

* decisions are made quickly * clear communication to employees * employees know exactly what their tasks are

Answer 74

* nature of task: simple or lack complexity * time: when time is lacking and decisions need to be made quickly * employee expectations: when employees lack experience and knowledge * manager preference: prefer to have control

Answer 75

manager makes the decision and then sells the decision to employees

Answer 76

* centralised decision making (+info) * one way communication

Answer 77

* decisions are made quickly * clear communication to employees * employees are clear about what it is they need to achieve

Answer 78

* no opportunity from employees * small pool of ideas due to no consultation * task focused with lack of employee development

Answer 79

* nature of the task: similar to autocratic-simple/lack complexity * time: when time is lacking * employee experience: inexperienced * manager preference: complete control but would rather convince employees

Answer 80

seeks the ideas and opinions of employees before they make a final decision

Answer 81

* two way communication * centralised decision making * discussion encouraged

Answer 82

* larger pool of ideas to choose from=improved quality of decision * increased motivation as employees are more involved * employees more likely to take ownership due to involvement in decision making

Answer 83

* more time consuming to make decisions * some employees may feel undervalued if their ideas are overlooked * some employees may not want to be consulted regularly

Answer 84

* nature of the task: tasks are more complex (more ideas generated) * time: when more time is available * employee experience: higher level of experience which allows strong ideas to be put forward * manager preference: prefers to include employees in the process (values input)

Answer 85

manager communicating and discussing info with employees in order to make decisions TOGETHER

Answer 86

* two way communication * de centralised decision making

Answer 87

* employees feel trusted and valued * improved morale and motivation due to involvement * employees gain experience in decision making which can help with career development

Answer 88

* more time on forming decision=less time completing work * time consuming as decisions are often discussed and debated * some employees may not want to be involved in decision making

Answer 89

* nature of the task: tasks are complex * time: long period of time required * employee experience: high level of experience and knowledge * manager preference: prefer to include employees/collaborative

Answer 90

manager leaves majority of the decision making and authority with the employees

Answer 91

* two way communication * highly de centralised decision making

Answer 92

* creates an environment that can encourage creative and innovative solutions * increased motivation and productivity due to a highly independent work environment, high levels of trust and empowerment

Answer 93

* potential for employees to allocate excessive resources to business decisions * potential for conflict when employees don't cooperate and insist on implementing their own ideas

Answer 94

* time: extended time available or when not much time and decisions can be delegated to highly experienced staff * experience of employees: highly experienced employees that can be trusted to take control * nature of tasks: either simple or simple * manager preference: low desire for control or show full trust in employees

Answer 95

abilities or competencies that managers use to help them complete the tasks that are necessary for the c\achievement of business objectives

Answer 96

* communication * delegation * planning * leading * decision making * interpersonal skills

Answer 97

the transfer of info from on individual to another

Answer 98

* can be verbal or non verbal * can boost employee morale

Answer 99

* effective communication=maintains good relationships * informs people of business objectives * effective communication=resolved conflict

Answer 100

* possible to communicate disagreement thereby causing conflict * time consuming, over sharing * positive relationships formed through communication=distraction

Answer 101

* autocratic:one way, from manager to employee * consultative, participative, laissez faire: two way communication

Answer 102

the passing of authority and responsibility from a manger to employee

Answer 103

* spreads workload * free up time * gain experience/skills * job satisfaction

Answer 104

* enables staff to learn new things * allows for effective time management * can lead to fresh ideas and an improvement in employee motivation

Answer 105

* must still provide support and set deadlines for employees=time consuming

Answer 106

* autocratic/persuasive: delegation of tasks but NO delegation of responsibility or decision making * consultative, participative, laissez faire: delegation of authority/responsibility

Answer 107

the ability to set objectives and develop strategies to achieve them

Answer 108

* strategic: long term goals (3-5 years) * tactical: medium term goals (1-2 years) * operational: short term goals (day to day)

Answer 109

* provides direction and reduces uncertainty * identifying alternative options * outlining strategies to achieve them

Answer 110

* Set: the objective * Analyse: the environment (use swot analysis) * Develop: alternatives * Implement: the plan * Monitor: and evaluate

Answer 111

* gives business purpose and direction * planning reduces risk and uncertainty=resources being used efficiently

Answer 112

* can be expensive * time consuming * opportunities will be lost while managers are planning

Answer 113

* autocratic, persuasive: have more formal planning process, involving only management * consultative, participative, laissez faire: slow planning process down, take ideas from a number of staff

Answer 114

ability of a manger to motivate and inspire employees to achieve business objectives

Answer 115

* motivates employees * communicates direction * responsible * empathetic/supportive * demonstrate values

Answer 116

* providing employees with a clear sense of direction aligned with business objectives * influencing staff behaviour and decision making to meet the business goals

Answer 117

* good leadership=motivated employees * good leadership=high staff morale

Answer 118

* time consuming=take time away from other important business activities * clashes can occur between leaders and employees if staff feel they cannot relate to management

Answer 119

* autocratic, persuasive: involves more instruction, telling staff what they need to be doing * consultative, participative: involves high level of leading, management has more interactions with staff * laissez faire: no leading from management

Answer 120

ability to make a choice on a course of actions from a range of alternatives

Answer 121

* informed=positive impact * assess available info and draw conclusions * independent/collaborative

Answer 122

* Identify: the problem/objective * Gather: info on the issue * Develop: alternatives * Analyse: alternatives * Choose: and implement the most appropriate alternative * Evaluate: gather feedback on final decision and see if it meets the objective

Answer 123

* important in situations where there's an emergency or crisis requiring quick decision making * team decision making generates a lot of knowledge and ideas

Answer 124

* team decision making=time consuming * if excluded from the decision making process, employees may feel ignored

Answer 125

centralised v decentralised

Answer 126

managers ability to communicate and interact with a range of people to create and maintain POSITIVE relationships

Answer 127

* empathetic * getting to know employees personalities and backgrounds * recognising individual employees motivation

Answer 128

* likely tp lead to greater staff morale and higher productivity * managers with solid interpersonal skills often better at conflict resolution * creates a workplace where people feel respected and work well together

Answer 129

* may use these skills to manipulate others * can take a long time to learn and make use of interpersonal skills * manager may be prone to making emotional decisions

Answer 130

level interpersonal skills for each style relies on ... * communication (one way or two) level of staff interaction

Answer 131

the shared values, ideals, beliefs and expectations of the people within the business

Answer 132

* official * real

Answer 133

what the owners/directors of the business want shared values and beliefs to be, is often expressed through elements such as formal rules and symbols

Answer 134

* vision statement/mission statement * business policies and procedures doccuments * scheduled training programs * business name, logos, slogans * compulsory uniform for employees

Answer 135

the ACTUAL shared values and beliefs of the people within the business expressed through unwritten rules and habits

Answer 136

* hiring * promotion criteria * management style * work layout * dress code * rituals * celebrations * how employees treat each other