AOS 1 Business foundations Flashcards
private limited company
an incorporated business that does not usually sell its shares to the public to raise capital to operate the business, but has limited liability.
What is a shareholder?
A person who holds at least one share in a company.
What is a sole trader?
A business owned and operated by one person.
What is incorporation?
The process that businesses go through to become a registered company and a separate legal entity from the owner/shareholder.
What does limited liability refer to?
When the shareholders in a company will not be held personally responsible for the debts of that business.
What is liquidation?
The process of selling off the assets of a business in order to repay creditors, with any assets remaining to be distributed among shareholders.
What is a private limited company?
An incorporated business that does not usually sell its shares to the public to raise capital to operate the business, but has limited liability.
Who are the directors of a company?
The people who have overall responsibility for managing the company’s business activities.
What are assets?
Items of value owned by a business.
What is a public listed company?
An incorporated business with a minimum of one shareholder (and no maximum), and whose shares are openly traded on the Australian Securities Exchange.
What is a social enterprise?
A business with the objective of fulfilling a social need.
What is a government business enterprise (GBE)?
A type of business that is government owned and operated.
What is revenue?
The income that a business earns from the sale of goods and services.
What is market share?
The proportion of total sales in a given market or industry that is controlled or held by a business, calculated for a specific period of time.
What is efficiency?
How well a business uses resources to achieve objectives.
What is effectiveness?
The degree to which a business has achieved its stated objectives.
Who are stakeholders?
Groups and individuals who interact with the business and have a vested interest in its activities.
Who are suppliers?
Businesses or individuals who supply materials and other resources to a business so that it can conduct its operations.
What is corporate social responsibility?
The obligations a business has over and above its legal responsibilities.
What are interpersonal skills?
The ability to deal or liase with people and build positive relationships with staff.
What is corporate culture?
The values, ideas, expectations, and beliefs shared by members of the business.
What is a laissez-faire management style?
One where the employees assume total responsibility for, and control of, workplace operations.
What are management skills?
The abilities or competencies that managers use to achieve business objectives.
What is communication in a business context?
The ability to transfer information from a sender to a receiver, and to listen to feedback.
What is delegation?
The ability to transfer authority and responsibility from a manager to an employee to carry out specific activities.
What is planning?
The ability to define business objectives and decide on the methods or strategies to achieve them.
What is leadership?
The ability to influence or motivate people to work towards the achievement of business objectives.
What is decision-making?
The ability to identify the options available and then choose a specific course of action from the alternatives.
What is real corporate culture?
The culture that actually exists in practice.
What is official corporate culture?
The written culture that a business aims to achieve.
autocratic management style
one where the manager tells staff what decisions have been made
persuasive management style
one where the manager attempts to ‘sell’ decisions made
consultative
management
style
one where the manager consults employees before making decisions
participative management style
one where managers unite staff to make decisions together
Name an element of corporate culture
Heroes. These are employees who are singled out to represent the positive values that an owner is looking for in all employees. An example of this might be employee of the month.
What is an expectation of shareholders?
Return on investment
What are strengths and weaknesses of autocratic management style?
Strengths: Quick decisions
What factors affect the appropriateness of management styles?
Nature of task, time, experience of employees, and manager personality and preference
What are advantages and disadvantages of a social enterprise
Advantage- May attract customers as it is run for a good cause
Disadvantage-May be difficult to expand business due to monet being use on the social cause
What is a management style?
The way in which a manager makes decisions as well as how they lead and communicate with employees
Business objective: to fulfil a social need
To deliver goods or services to customers that benefit the wellbeing of the community.
Distinguish between official corporate culture and real corporate culture
Official corporate culture can be seen in official documents, while real corporate culture can be seen in employees actions, such as what uniform they wear
what are business objectives?
A desired outcome that a business intends to achieve
mission statement
summary of aims and values of a company
Business objective: to fulfil a market need
To provide goods or services that satisfies a demand in a specific market
