BM3CHAP1

Question 1

TYPES of businesses

Answer 1

sole trader, partnerships,companies,social enterprise,gov bus enterprise

Question 2

sole trader

Answer 2

one person who runs,owns,provides all finance,pays tax using personal TFN, unlimited liabili

Question 3

sole trader
legal req: if diff name to the owner..

Answer 3

must register with ASIC

Question 4

sole trader
adv dis

Answer 4

complete control, resp for all losses

Question 5

partnership

Answer 5

owned by 2 or more people, unlimited , own TFN, profits or losses are devided

Question 6

adv:
dis of partnership

Answer 6

shared resp, liability, conflict

Question 7

incorporation

Answer 7

bus becomes a registered company and a sep legal enitity from owners can either be public (LTD) OR PRIVATE (PTY LTD)

Question 8

private limited companies

Answer 8

1 shareholder and a max of 50 non emp shareholders and whos shares are offered only to those people whom the bus wishes to have - shares r offered only to those whome the buswishes to have as part owners

incorporated bus

Question 9

PTY LTD ad and dis

Answer 9

growth potential, sep legal entity - has own lega rights n obligations

cost, rapid growth may lead to efficiencies

Question 10

Public listen companies

Answer 10

gen public mmay buy and sell shares, openly traded. must be limited (ltd), holds AGM every year - annual general meeting
one shareholder no max

Question 11

social enterprise

Answer 11

main objectinve is to fulfill social needs, profits reinvested back int business to keep fulfilling social need
and doesnt rely on donations

Question 12

social enterprise adv and dis

Answer 12

opens up new market, pos ffect on profit and market share
dis: operatng cost

Question 13

gov bus enterprise

Answer 13

owned by gov to make money for themselves, carries out gov policies while delieverin community services

Question 14

GBE adv and dis

Answer 14

povides services that noone else does, political interference

Question 15

bus objectives

Answer 15

-make profit
-increase market share
-improve efficiency
- improve effectiveness
-fulfil makret need
- fulfil social need
-meet shareholders expectations

Question 16

bus onjectives - increase market share

Answer 16

expand their bus in the market- competing for ur $

Question 17

bus onjectives - improve efficiency

Answer 17

how well a business uses its resources to achieve objectives

Question 18

bus onjectives - improve effectiveness

Answer 18

how successful a business has been in achieving its objectives by setting goals and looking for improvements

Question 19

bus onjectives - fulfil social need

Answer 19

what problems exist in our wrld that arent being adressed

Question 20

bus onjectives - meet shareholder expectation

Answer 20

people invest in shares bc they expect to make a return on this investment

Question 21

owners

Answer 21

can either be directly or indirectly involved. they rely on the bus as their source of income

Question 22

shareholders

Answer 22

have an ownership interest and get a say in how the bus operates

Question 23

managers

Answer 23

resp for running the bus and keeping it successful

Question 24

stakeholders

Answer 24

those who interact with the bus in some way and have a vested interet in thei activities

Question 25

employees

Answer 25

work for bus, quality of products n services depends on emp skills and commitment

Question 26

customers n gen community

Answer 26

expect to puchase quality products at reasonableprice and recieve high level services

Question 27

the gen community

Answer 27

expect bus to give back to society or show consern for env

Question 28

mangement styles

Answer 28

autocratic
persuasive
consulative
participative
laissez faire

Question 29

autocratic

Answer 29

one way com,threats, controlling
adv:procedures are clearly defined
dis: deas not shared

Question 30

persuasive

Answer 30

adv:workers feelings r considered
dis: com still limited

Question 31

consultative

Answer 31

greater ideas
dis: shared ideas can be iverlooked

Question 32

partiipative

Answer 32

adv:feel as if they played an active role in allocating tasks
dis: time consuming

Question 33

laissez faire

Answer 33

zero control by manageent, employees have full resp
adv:employees feel sense of ownership
dis:loss of control nby maneg

Question 34

management skills

Answer 34

Communication
Delegation
Planning
Leadership
Decision-Making
Interpersonal Skills

Question 35

delegation

Answer 35

When those in charge give their subordinates the power and responsibility to supervise and carry out certain tasks and activities.

Question 36

plannning process

Answer 36

Define objectives
Analyse (SWOT)
Develop strategies
Implement - put strategies to place
monito

Question 37

Transactional leaders

Answer 37

lead by providing staff with rewards to drive them to comply and accept their authority

Question 38

Transformational leaders

Answer 38

inspire staff with a vision, which helps them ‘buy-in’ and commit to achieving the objectives of the business.

Question 39

coporate culture: values

Answer 39

how a business approaches the way they do things.‘Honesty’. ‘Hard work’. ‘Teamwork’.

Question 40

coporate culture: symbols

Answer 40

events or objects that represent something the business believes in

Question 41

cop cult: Rituals, Rites and Celebrations:

Answer 41

routine behavioural patterns that can be experienced

Question 42

interpersonal skills

Answer 42

ability to deal with pple and build pos relationships