Brainscape's Knowledge GenomeTM

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


See full index

Business 3&4 > AOS1 > Flashcards

AOS1 Flashcards

1
Q

What is a business?

A

A business is an entity that provides goods or services to customers in exchange for money, with the aim of generating profit.

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

what are the 6 business types

A

sole trader, partnership, private limited company, public listed company, government business enterprise, social enterprise

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

sole trader definition

A

A business structure that is owned and operated by one individual

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

what are 4 ways to identify a sole trader?

A
  • unlimited liability
  • owner retains all profits after personal income tax is paid
  • simple and cost effective
  • single individual makes all decisions
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

what are 3 advantages of a sole trader?

A
  • simple to set up and run
  • all profits go to owner
  • owner has full control over business decisions
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

what are 3 disadvantages of a sole trader?

A
  • Unlimited Liability (owner is personally responsible for all business debts, risking personal assets)
  • Limited Capital (Relies on personal funds, which may limit business growth)
  • Limited Expertise (may lack diverse skills, making it challenging to manage business effectively)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

partnership definition

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
8
Q

what are 4 ways to identify a partnership?

A
  • 2-20 owners
  • simple and cost effective structure
  • profits shared between owners
  • unlimited liability
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

what are 3 advantages of a partnership?

A
  • distribution of tasks, leveraging the skills and expertise of each partner
  • partnerships are easier and less expensive to set up than companies
  • benefit from the combined capital contributions of partners
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

what are 3 disadvantages of a partnership?

A
  • Unlimited Liability
  • Differences in opinion or conflicts among partners can arise
  • Profits must be shared among partners
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Private limited company definition

A

An incorporated business structure that has at least one director and a maximum of 50 shareholders

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

what are 4 ways to identify a private limited company?

A
  • pty ltd after business name
  • only up to 50 shareholders
  • limited liability of the shareholders
  • shares can only be sold privately
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

what are 3 advantages of a private limited company?

A
  • limited liability
  • raise funds by selling shares to a selected group of investors
  • company exists independently of its owners, providing stability and continuity (seperate legal identity)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

what are 3 disadvantages of a private limited company?

A
  • Compliance with regulatory requirements and administrative duties can be complex
  • Profits are taxed at the company level, and shareholders also pay personal income tax on dividends (double taxation)
  • Limited to 50 shareholders, restricting the ability to raise capital publicly
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

public listed company definition

A

An incorporated business that has an unlimited number of shareholders and lists and sells its shares on the ASX

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

what are 6 ways to identify a public listed company?

A
  • ltd after business name (limited liability)
  • shares sold publicly
  • unlimited shareholders
  • limited liability of shareholders
  • stricter regulations due to public listing
  • have to display financial info publicly
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

what are 3 advantages of a public listed company?

A
  • limited liability
  • can raise significant funds by selling shares to the public on stock exchanges
  • shareholders can easily buy or sell shares on the open market
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

what are 3 disadvantages of a public listed company?

A
  • Subject to stringent government regulations and reporting requirements
  • Loss of Control, Shareholders have a say in major decisions, potentially diluting the control of the original owners
  • The process of becoming a public company can be expensive and time-consuming
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

social enterprise definition

A

Type of business that aims to fulfil a community or environmental need by selling goods or services

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

what are 2 ways to identify a social enterprise?

A
  • mission, focus is on social or environmental cause
  • profits are reinvested in the business or donated to charities
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

what are 3 advantages of a social enterprise?

A
  • Focuses on both profitability and contributing to community
  • Can take various legal forms, adapting to the specific goals of the enterprise
  • may attract support from customers who value socially responsible businesses
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

what are 3 disadvantages of a social enterprise?

A
  • Profits must be reinvested or used for charitable purposes
  • Balancing social and financial objectives can be challenging
  • May face challenges in gaining acceptance or understanding from consumers or investors
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Government Business Enterprise definition

A

A business that is owned and operated by the government

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

what are 3 ways to identify a GBE?

A
  • owned by the government but managed separately
  • exists to provide a public service
  • accountable to the government and the public
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

what are 3 advantages of a GBE?

A
  • Exists to fulfill a designated government purpose
  • Operates with a focus on remaining profitable to sustain its activities
  • Can benefit from government support, including funding or regulatory advantages
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

what are 3 disadvantages of a GBE?

A
  • Subject to potential changes in strategic directions dictated by the government
  • Accountable to both the government and the public
  • Management decisions may be influenced by government directives
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

what are business objectives?

A

the goals a business intends to achieve

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

what are the 7 main business objectives?

A
  • to make a profit
  • to increase market share
  • to meet shareholders expectations
  • to fulfil a market need
  • to fulfil a social need
  • to improve efficiency
  • to improve effectiveness
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

what is making a profit?

A

make more revenue than business expenses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

what is increasing market share?

A

to increase the total sales within an industry, and it reflects a businesses competitiveness

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

what is to meet shareholder expectations?

A

providing a financial return on their investment in the company, which is in the form of dividends or capital gains.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

what are dividends?

A

regular sums of money paid out to shareholders from a business’s profit.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

what is to fulfil a market need?

A

When a business addresses customer needs that are currently unmet or underrepresented by other businesses in the same industry

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

what is to fulfil a social need?

A

improving society and the environment through business activities.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

what is improving efficiency?

A

How well a business uses its resources when producing a good or service. Getting the most out of a business’s resources, including time, money, effort, employees (labour) and materials

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

what is improving effectiveness?

A

Competitive businesses must consistently set and achieve targets. Effectiveness is the extent to which a business achieves its stated objective

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

what are stakeholders?

A

Stakeholders are individuals, groups, or organisations who have a vested interest in the performance and activities of a business.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

what are 5 internal stakeholders?

A
  • shareholders
  • owners
  • directors
  • management
  • employees
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

what are 5 external stakeholders?

A
  • customers
  • competitors
  • suppliers
  • trade unions
  • general community
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

customers definition

A

Individuals or groups who interact with a business by purchasing and utilising its goods and services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

competitors definition

A

a business rival in the same market offering the same/similar product or service of a business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

suppliers definition

A

individuals or groups that source Raw Materials, component parts, and proceeds materials and sell them to a business for use in the production of its goods and services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

trade union definition

A

an organised association that represents workers in a particular trade or profession. they act on behalf of members to negotiate with management on issues and protect and further the rights and interests

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

general community definition

A

individuals and groups who are impacted by a business’s operation and decisions often because they are located in close proximity to the business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

shareholders definition

A

Individuals who have purchased shares in a company and are therefore part owners of that company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

owners definition

A

individuals who establish, invest, and have a share in a business, often with the goal of earning a profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

directors definition

A

An individual or member of a board of people that have overall responsibility for managing the company’s business activities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

management definition

A

individuals who oversee and coordinate a business’s employees and lead its operations to ultimately achieve the business’s objectives

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

employees definition

A

individuals who are hired by a business to complete work tasks and support the achievement of its objectives

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

what are 5 interests of customers?

A
  • to receive high-quality goods and
    services at affordable prices
  • to receive high levels of customer
    service
  • to potentially establish a long-term
    relationship with the business
  • to ensure that products are
    Australian made
  • to engage with a business that is
    acting in an ethical and socially
    responsible manner
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

what are 5 interests of competitors?

A
  • to gain a competitive edge over another business
  • to gain a larger market share
  • to differentiate the products or services from their competitors
  • to compare and evaluate their performance against other businesses
  • be prepared to respond to any change in the actions of another business
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
52
Q

what are 5 interests of trade unions?

A
  • to negotiate for its members: fair wages, working conditions, working hours, and other related work issues
  • to be represented in the workplace
  • to be involved in the decision-making with managment over issues relating to the employees
  • to ensure the welfare of their members, both health and safety
  • to be able to act as a bargaining agents for employees when negotiating new collective agreements
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
53
Q

what are 5 interests of suppliers?

A
  • turn a profit from the raw materials and resources they supply
  • to be paid promptly and in full
  • to increase their own revenue
  • to be able to establish and guarantee a long-term preferred supplier relationship
  • to develop reliable and honest relationships with businesses they supply
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
54
Q

what are 4 interests of general community?

A
  • to ensure the business operations are environmentally responsible and sustainable
  • to increase the local employment rate and boost the local economy
  • to ensure that a business is socially responsible and ethical in its operations
  • to observe business activities that lead to improvements in the community and environment
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
55
Q

what are 3 interests of shareholders?

A
  • profitability of the business
  • increasing the value of their investment through capital gains and dividends (portion of the profits made)
  • ethical business operations
56
Q

what are 2 interests of owners?

A
  • 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 increases in its share price, dividends or profits
57
Q

what are 4 interests of directors?

A
  • to develop and direct strategy and major business decisions
  • to ensure strict adherence to corporate governance, social responsibility, and ethical and honest behaviour
  • to gain personal power and status by being a director/partner of the business
  • to be well remunerated/paid (money and share options)
58
Q

what are 5 interests of management?

A
  • to be recognised for the achievement of business objectives
  • to receive bonuses from business owners for achieving business objectives
  • increase their status and engage in career advancement and promotion
  • to receive an appropriate remuneration package that reflects their managerial role and responsibility within the business
  • to satisfy and balance as many stakeholder expectations as possible
59
Q

what are 7 interests of employees?

A
  • to receive a fair wage or salary
  • to receive sufficient training
  • to work in a non-discriminatory and ethical workplace
  • to have an opportunity of career advancement
  • to gain job satisfaction
  • to feel secure in a long-term survival of their job
  • to work for a business that is ethical and socially responsible
60
Q

what is a management style?

A

the approach and manner in which employees are directed and
motivated within a business.

61
Q

what are the 5 types of management styles?

A

autocratic, persuasive, consultative, participative, laissez-faire

62
Q

what are 3 things to look for when identifying a management style?

A
  • communication
  • decision-making
  • employee involvement
63
Q

what does the autocratic management style involve

A

a manager making decisions and directing employees without any input from them

64
Q

does a manager have centralised control with an autocratic management style?

A

yes

65
Q

what type of communication is used in an autocratic management style?

A

one-way

66
Q

what are 2 advantages of an autocratic management style

A
  • Directions and procedures are clearly defined; there is little uncertainty
  • Employees’ roles and expectations are clear
67
Q

what are 3 disadvantages of an autocratic management style

A
  • No employee input; fewer ideas; employees less able to develop; employees don’t feel valued
  • No responsibility for lower-level staff, resulting in lower job satisfaction & low motivation
  • Increased potential for conflict
68
Q

what does the persuasive management style involve

A

a manager making decisions and communicating the reasons for those decisions to employees without their input (trying to convince the employees)

69
Q

does a manager have centralised control with a persuasive management style?

A

yes

70
Q

what type of communication is used in an persuasive management style?

A

one-way

71
Q

what are 3 advantages of an persuasive management style

A
  • Decisions can be made quickly as there is no consultation
  • Managers gain some trust/support by explaining reasons for their decisions
  • More positive response, as employees receive more information
72
Q

what are 3 disadvantages of an persuasive management style

A
  • Attitude and trust remain negative as there is no employee participation
  • Employees remain frustrated because they are denied any participation in the decision-making process
  • Time may be wasted at meetings that justify decisions, but don’t seek employee input
73
Q

what does the consultative management style involve

A

a manager seeking input from employees on business decisions but making the final decision themselves

74
Q

does a manager have centralised control with a consultative management style?

A

yes

75
Q

what type of communication is used in an consultative management style?

A

two-way

76
Q

what are 3 advantages of an consultative management style

A
  • As employees are consulted, there is greater variety of ideas, which can help make a better decision
  • Employees have some ownership in the way in which the business is run and take more interest in it
  • Employees are more involved in the business so can feel a sense of fulfilment which can improve morale
77
Q

what are 3 disadvantages of an consultative management style

A
  • it takes time to consult with employees prior to making decisions
  • Some issues don’t suit a consultation process
  • if the process is not consistent, staff will be uncertain of their roles
78
Q

what does the participative management style involve

A

a manager sharing information with employees so that employees can participate in decision-making (making decisions jointly)

79
Q

does a manager have centralised control with a participative management style?

A

no, decentralised control

80
Q

what type of communication is used in an participative management style?

A

two-way

81
Q

what are 3 advantages of an participative management style

A
  • Positive relations between management and employees means there is a lower likelihood of disputes
  • The two-way communication process means greater flow of ideas
  • High motivation and job satisfaction as a result of employee participation
82
Q

what are 3 disadvantages of an participative management style

A
  • More time consuming, as more views must be considered
  • Compromises made rather than clear, decisive decisions
  • Not all employees may wish or be equipped to contribute
83
Q

what does the laissez-faire management style involve

A

a manager communicating business objectives to employees and giving them freedom to make decisions independently

84
Q

does a manager have centralised control with a laissez-faire management style?

A

no, decentralised

85
Q

what type of communication is used in an laissez-faire management style?

A

two-way

86
Q

what are 3 advantages of an laissez-faire management style

A
  • Helps employees feel a sense of ownership towards the project they are working on
  • Encourages creativity, which is conducive to a dynamic working environment
  • Communication is open and ideas are shared
87
Q

what are 3 disadvantages of an laissez-faire management style

A
  • Resources, including time and money may be misused or used ineffectively, due to the loss of management control
  • May lead to creative differences and thus internal conflict
  • Focus on business objectives can be easily lost
88
Q

what are the 4 factors when deciding a management style that needs to be considered

A

time, employee experience, nature of the task and manager preference

89
Q

time definition (management style)

A

The length of time in which a manager must complete a task or make a business decision can change and thus influence the management style utilised.

90
Q

what management styles are suitable when there is limited amount of time and why

A

autocratic or persuasive as the manager can make decision quickly and do not need to discuss with employees

91
Q

what management styles are suitable when there is a lot of time available and why

A

consultative, participative, or laissez-faire as there can be lots of discussion about the best option (two-way discussions)

92
Q

what management styles are suitable when they have inexperienced employees and why

A

autocratic or persuasive, as they will be unlikely be able to help

93
Q

what management styles are suitable when they have experienced employees and why

A

consultative, participative, or laissez-faire as they can give there experienced opinion and ideas (two-way communication)

94
Q

what management styles are suitable when the tasks are simple and why

A

autocratic or persuasive, the discussion of ideas may not be needed so the manager can figure it out themselves

95
Q

what management styles are suitable when the tasks are complex and why

A

consultative, participative, or laissez-faire as they allow for two-way conversations and managers and employees can make more innovative and well-informed decisions by sharing ideas and suggestions

96
Q

what management styles are suitable when the manager likes to have control and why

A

autocratic or persuasive, has centralised decision-making and one-way communication

97
Q

what management styles are suitable when the manager likes to have shared control and why

A

consultative, participative, or laissez-faire, allows for two-way conversations and employee involvement in the decision-making processes

98
Q

what are management skills

A

the abilities or competencies that managers use to complete tasks for business objectives

99
Q

what are the 6 main management skills?

A
  • planning
  • decision-making
  • communication
  • delegation
  • interpersonal skills
  • leadership
100
Q

planning definition

A

The process of determining a business’s objectives and establishing strategies to achieve these aims.

101
Q

what are the 3 levels of planning?

A
  • strategic
  • tactical
  • operational
102
Q

what does strategic planning involve?

A

the broadest scope of what a business aims to achieve in the next two to five years and affects the general direction of business decisions made

103
Q

what does tactical planning involve?

A

the long-term strategies a business intends to use in the next one to two years in order to fulfil its strategic plan

104
Q

what does operational planning involve?

A

the short-term actions a business takes on a daily basis to achieve its tactical plan.

105
Q

what are 3 examples of how planning can be used?

A
  • To create budgets, allocating financial resources to various departments and projects based on business priorities
  • To define the long-term vision and objectives of the business
  • To guide the initiation, execution, and completion of projects by outlining tasks, timelines, and resource requirements
106
Q

decision making definition

A

The skill of selecting a suitable course of action from a range of plausible options is decision-making.

107
Q

what are 3 examples of how decision making can be used

A
  • To set long-term objectives
  • To identify and address operational challenges, ensuring the smooth functioning of the business.
  • To evaluate potential risks and determine strategies to mitigate or navigate them effectively
108
Q

communication definition

A

Communication is the skill of effectively transferring information between parties. There can be verbal or non-verbal communication.

109
Q

what are 3 examples of how communication can be used

A
  • To clarify tasks (Ensuring understanding of tasks that need completion)
  • To resolve conflict (Addressing misunderstandings and disputes)
  • To maintain good working relationships (Fostering positive interactions for a harmonious work environment)
110
Q

delegation definition

A

Delegation is the skill of assigning tasks and authority to lower-level employees in the business hierarchy.

111
Q

what are the 5 steps that should be taken to delegate a task?

A
  1. task
  2. employee
  3. expectations
  4. monitoring
  5. appraisal
112
Q

what happens in the task stage (delegation)

A

Determine which tasks should be delegated, taking into consideration the complexity of the work and the appropriateness of selecting another employee to complete the task

113
Q

what happens in the employee stage (delegation)

A

Select the subordinate that will complete the task, evaluating the skillset of the employee and their knowledge of the area.

114
Q

what happens in the expectation stage (delegation)

A

Outline to the employee the expected standards to which the task should be completed.

115
Q

what happens in the monitoring stage (delegation)

A

Observe the progress made by the employee when completing the task and provide encouragement for them to accomplish their assigned work

116
Q

what happens in the appraisal stage (delegation)

A

Evaluate and revise the work done by the employee.

117
Q

what are 3 examples of delegation being used

A
  • To ensure efficient task distribution and meet tight deadlines
  • To ensure efficient project management
  • To focus on high-priority activities like strategic planning and team leadership
118
Q

interpersonal definition

A

the skill of creating positive interactions with other employees, to foster beneficial professional relationships

119
Q

what are 3 examples of interpersonal being used

A
  • Active listening (Demonstrating genuine interest in a colleague’s ideas during a team meeting)
  • Empathy (acknowledging and understanding a team member’s challenges and offering support)
  • Collaboration (Actively participating in group discussions and contributing valuable insights)
120
Q

leadership definition

A

the skill of motivating others in order to achieve a business’s objectives

121
Q

what are 3 examples of leadership being used

A
  • To set a vision (A manager articulates a compelling vision for the team, outlining ambitious but achievable goals)
  • To lead by example (A manager embodies the values and work ethic expected from the team, setting a positive example that inspires others)
  • To build team culture (A manager promotes a positive team culture by fostering collaboration, recognising achievements, and encouraging open communication)
122
Q

what management skills are used frequently or sometimes in the autocratic style?

A
  • planning, decision-making
  • communication
123
Q

what management skills are used frequently or sometimes in the persuasive style?

A
  • planning, decision-making
  • communication, delegation, interpersonal
124
Q

what management skills are used frequently or sometimes in the consultative style?

A
  • planning, decision-making, communication
  • delegation, interpersonal, leadership
125
Q

what management skills are used frequently or sometimes in the participative style?

A
  • communication, interpersonal, leadership
  • decision-making and delegation
126
Q

what management skills are used frequently or sometimes in the laissez-faire style?

A
  • delegation, communication, leadership
  • interpersonal
127
Q

what is corporate culture (CC)

A

the shared values and beliefs of a business and its employees.

128
Q

what does official corporate culture involve

A

the shared views and values that a business aims to achieve, often outlined in a written format.

129
Q

what does real corporate culture involve

A

the shared values and beliefs that develop naturally within a business, and are practised on a daily basis by its employees.

130
Q

what are 3 indicators of official corporate culture

A
  • logos
  • slogans
  • written policies
131
Q

what are 3 indicators of real corporate culture

A
  • language used
  • dress
  • behaviours of employees
132
Q

what are 3 similarities of real and official CC

A
  • concerned with the shared values and beliefs of people in the business.
  • aim to change the way employees interact with each other and the business
  • can lead to improved business performance
133
Q

what are 3 differences between real and official CC

A
  • OCC is often written, whereas RCC is usually unwritten
  • OCC is institutionalised by formal documents and rules, RCC develops organically in unwritten interactions between employees
  • OCC includes the ideals of businesses, RCC includes what occurs in actuality
134
Q

what are 3 benefits of positive culture

A
  • Increased productivity
  • Increased work ethic
  • Greater profitability
135
Q

what are 3 costs of negative culture

A
  • Decreased productivity
  • Decreased work ethic
  • Decreased profitability

Business 3&4 (7 decks)

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