AOS1 - Business Foundations Flashcards
A type of business structure owned and operated by one individual and has unlimited liability
A sole trader
A partnership is
A business structure where 2-20 individuals own and operate a business with unlimited liability.
Two characteristics of a private limited company are:
Up to 50 shareholders/owners
Limited liability
Is incorporated
A public listed company is
An incorporated
business that is owned
by shareholders, run by
directors, and listed on
the stock exchange
A social enterprise is
A profit-making business with social objectives, whose surpluses are
reinvested towards that
social objective.
Two examples of a Government Business Enterprise are:
Australia Post, NBN Co, Defence Housing Australia
The main business objectives listed in the study design are:
to make a profit, to increase market share, to improve efficiency, to improve effectiveness, to fulfil a market need, to fulfill a social need and to meet shareholder expectations
The interest of customers as a stakeholder are
To receive high quality goods or services at a fair price.
The interest of employees as a stakeholder are
To be renumerated fairly and provided safe working conditions.
The interest of managers as a stakeholder are
To be involved in the success of the business and maintain job security.
The interest of owners as a stakeholder are
To receive returns on their investment.
The interest of the general community as a stakeholder are
For the business to provide employment, maintain the environment and contribute to the community.
The interest of suppliers as a stakeholder are
To be paid on time and maintain a positive relationship with the businses.
A potential conflict between the interests of customers and employees is:
For customers to receive a product at a fair price this may limit the businesses ability to pay their employees the amount they would like.
A potential conflict between owners and the general community is
That in order to maintain a return on investment, businesses may operate in a way which may damage the environment.
An autocratic management style involves
A management style
where the leader
dictates what the
objectives are and
how they should
be achieved.
One way communication
Centralized decision making
Persuasive management style involves
A management style
where the leader
dictates what the
objectives are and
persuades employees
as to how they should
be achieved.
One way communication
Centralized decision making
A consultative management style involves
A management style
where the leader asks
employees for their
opinions before making
a decision.
Two way communication
Centralized decision making
A participative management style involves
A management style
where the leader shares
decision making
responsibility with
their team.
Two way communication
Decentralized decision making
A laissez-faire management style involves
A management style
where employees
are totally responsible
for the decision making
and operation
of the business.
Decentralized decision making
The management styles in order from most manager control to least manger control
Autocratic
Persuasive
Consultative
Participative
Laissez-faire
The management skills listed in the study design are:
Communication
Delegation
Leadership
Decision Making
Interpersonal Skills
Planning
Describe how communication and decision making would apply to an autocratic manager
One way communication
Centralised decision making
Corporate Culture refers to
The shared values,
beliefs and practices
of a business.
