AOS1 SAC1

Question 1

Profit

Answer 1

The difference between revenue and expenses

Question 2

Sole Trader

Answer 2

An individual owner of a business, entitled to keep all profits after tax has been paid, but liable for all losses

Question 3

Partnerships

Answer 3

A legal form of business ownership where two or more (up to 20) people work together

Question 4

Private Limited Companies

Answer 4

Been through incorporation and can be recognised by its name as it includes the words Pty Ltd

Question 5

GBE

Answer 5

A business that is Government owned and operated

Question 6

Public Listed Company

Answer 6

Been through incorporation and does not have any upper limit restriction placed on the number of shareholders

Question 7

Social Enterprise

Answer 7

Is in the private sector and is a business that is revenue-raising but distributes profit to benefit the community rather than individual shareholders

Question 8

Vision Statement

Answer 8

Expresses what the organisation hopes to become in the future

Question 9

Mission Statement

Answer 9

The reason for an organisation existence

Question 10

Strategy

Answer 10

A course of action used in order to achieve their objectives

Question 11

Market Share

Answer 11

Proportion or percentage of total sales (market) controlled by the business in the industry

Question 12

Stakeholders

Answer 12

Those who have a vested interest in the company, and are impacted by its success

Question 13

Corporate Social Responsibility

Answer 13

Continuing commitment that a business needs to establish and follow

Question 14

Operations

Answer 14

Department responsible for the managing process of goods and services`

Question 15

Finance

Answer 15

Department responsible for planning and preparing internal financial information

Question 16

Human Resources

Answer 16

Department responsible for managing the overall relationship the business has with its employees

Question 17

Sales and Marketing

Answer 17

Department responsible for developing strategies to create ongoing relationship between the business and its customers and for generating revenue from individual customers

Question 18

Technology Support

Answer 18

Department responsible for assisting the business to create value, through increasing efficiency, productivity and cost-effectiveness

Question 19

Autocratic Management Style

Answer 19

Manager TELLS staff what decisions have been made. All decision making is centralised and there is little delegated authority, with downward, one way communication

Question 20

Persuasive Management Style

Answer 20

Manager SELLS the decision made to staff. Managers make the decisions, then persuade workers to see the benefits of those situations

Question 21

Consultative Management Style

Answer 21

Manager ASKS OPINIONS before making decisions. Managers consult with employees when discussing an issue; however, the ultimate decision is made by the manager after listening to all the decisions

Question 22

Participative Management Style

Answer 22

Manager UNITES/JOINS WITH staff to make decisions. Decision making is performed as a team with management and employees working together, with management still being accountable

Question 23

Laissez-Faire

Answer 23

Manager DELEGATES decision making to staff. Employees assume total responsibility. It is a style that leaves the majority of decision making to the employees

Question 24

The contingency approach

Answer 24

Manager should use a range of variables to determine the most appropriate management styles to suit the situation.

Question 25

Operational Planning

Answer 25

Detailed, short-term day-to-day planning undertaken by a business

Question 26

Tactical Planning

Answer 26

Planning undertaken by middle management to assist in the implementation of strategic decisions

Question 27

Communication

Answer 27

Process of creating and exchanging information between people that produces the required response

Question 28

Delegation

Answer 28

Process where formal authority is passed down the hierarchy of a business

Question 29

Planning

Answer 29

Formalised decision making process that is future orientated. It is the process of setting objectives and deciding the methods to achieve them

Question 30

SWOT Analysis

Answer 30

Analysis technique used to determine where a business is placed in the market by looking at internal strengths and weaknesses and external opportunities and threats

Question 31

Leading

Answer 31

Skill of a manager when guiding, motivating and inspiring workers towards achieving the goal of a business

Question 32

Decision making

Answer 32

Multi-step approach whereby a selection is made between a range of different alternatives

Question 33

Interpersonal Skills

Answer 33

Skills used everyday to communicate and interact with other people both individually and in groups

Question 34

Strategic Planning

Answer 34

Long Term (3-5 years) planning undertaken by senior management to achieve objectives

Question 35

Official Corporate Culture

Answer 35

Desired culture a business wishes to establish

Question 36

Real (Unofficial) culture

Answer 36

Actual or prevailing culture that exists within a business

Question 37

Strategy

Answer 37

A plan of action that aims to achieve a specific objective

Question 38

Policy

Answer 38

A guide to behaviour; a written statement detailing processes and rules that must be observed

Question 39

Contingency approach (the manager should consider…)

Answer 39

• Their own personality
• Employees ability
• Task that needs to be done
• Culture of business
• Constraints (time, budget, resources)