BM3CHAP1 Flashcards
TYPES of businesses
sole trader, partnerships,companies,social enterprise,gov bus enterprise
sole trader
one person who runs,owns,provides all finance,pays tax using personal TFN, unlimited liabili
sole trader
legal req: if diff name to the owner..
must register with ASIC
sole trader
adv dis
complete control, resp for all losses
partnership
owned by 2 or more people, unlimited , own TFN, profits or losses are devided
adv:
dis of partnership
shared resp, liability, conflict
incorporation
bus becomes a registered company and a sep legal enitity from owners can either be public (LTD) OR PRIVATE (PTY LTD)
private limited companies
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
PTY LTD ad and dis
growth potential, sep legal entity - has own lega rights n obligations
cost, rapid growth may lead to efficiencies
Public listen companies
gen public mmay buy and sell shares, openly traded. must be limited (ltd), holds AGM every year - annual general meeting
one shareholder no max
social enterprise
main objectinve is to fulfill social needs, profits reinvested back int business to keep fulfilling social need
and doesnt rely on donations
social enterprise adv and dis
opens up new market, pos ffect on profit and market share
dis: operatng cost
gov bus enterprise
owned by gov to make money for themselves, carries out gov policies while delieverin community services
GBE adv and dis
povides services that noone else does, political interference
bus objectives
-make profit
-increase market share
-improve efficiency
- improve effectiveness
-fulfil makret need
- fulfil social need
-meet shareholders expectations
bus onjectives - increase market share
expand their bus in the market- competing for ur $
bus onjectives - improve efficiency
how well a business uses its resources to achieve objectives
bus onjectives - improve effectiveness
how successful a business has been in achieving its objectives by setting goals and looking for improvements
bus onjectives - fulfil social need
what problems exist in our wrld that arent being adressed
bus onjectives - meet shareholder expectation
people invest in shares bc they expect to make a return on this investment
owners
can either be directly or indirectly involved. they rely on the bus as their source of income
shareholders
have an ownership interest and get a say in how the bus operates
managers
resp for running the bus and keeping it successful
stakeholders
those who interact with the bus in some way and have a vested interet in thei activities
employees
work for bus, quality of products n services depends on emp skills and commitment
customers n gen community
expect to puchase quality products at reasonableprice and recieve high level services
the gen community
expect bus to give back to society or show consern for env
mangement styles
autocratic
persuasive
consulative
participative
laissez faire
autocratic
one way com,threats, controlling
adv:procedures are clearly defined
dis: deas not shared
persuasive
adv:workers feelings r considered
dis: com still limited
consultative
greater ideas
dis: shared ideas can be iverlooked
partiipative
adv:feel as if they played an active role in allocating tasks
dis: time consuming
laissez faire
zero control by manageent, employees have full resp
adv:employees feel sense of ownership
dis:loss of control nby maneg
management skills
Communication
Delegation
Planning
Leadership
Decision-Making
Interpersonal Skills
delegation
When those in charge give their subordinates the power and responsibility to supervise and carry out certain tasks and activities.
plannning process
Define objectives
Analyse (SWOT)
Develop strategies
Implement - put strategies to place
monito
Transactional leaders
lead by providing staff with rewards to drive them to comply and accept their authority
Transformational leaders
inspire staff with a vision, which helps them ‘buy-in’ and commit to achieving the objectives of the business.
coporate culture: values
how a business approaches the way they do things.‘Honesty’. ‘Hard work’. ‘Teamwork’.
coporate culture: symbols
events or objects that represent something the business believes in
cop cult: Rituals, Rites and Celebrations:
routine behavioural patterns that can be experienced
interpersonal skills
ability to deal with pple and build pos relationships
