Business Foundations Flashcards
TYPES of businesses
Sole Trader
is a business structure owned and operated by a single person.
Partnership
is a type of business owned by two to 20 owners.
Private Limited Company (Pty Ltd)
is an incorporated business with at least one director and up to 50 selected shareholders.
Public Listed Company (Ltd)
is an incorporated business that can sell shares on the Australian Securities Exchange (ASX) to an unlimited number of shareholders.
Social Enterprise
is a business that aims to make a profit and redirects the profit towards improve the community or environment.
Government Business Enterprise
is a profit driven business that is owned by but managed separately from the government.
Business objectives
are the goals a business intends to achieve in a specific period of time.
Business OBJECTIVES
Make a profit
- Businesses aim to make a profit as this money can be distributed to owners and shareholders.
- It can also be reinvested in the business to allow the business to grow.
Increase market share
Businesses aim to increase their market share to become more competitive within an industry.
Meet shareholder expectations
A business that generates profit consistently is more likely to meet these shareholder expectations.
Fulfil a market share
A business fulfils a market need by providing products and services which meet the desires of a group of customers with similar needs.
Fulfil a social need
A business fulfils a social need by improving the community and environment through its business activities.
To improve efficiency
An efficient business gets the most out of their resources, aiming to maximise the use of their time, money, effort, employees, and materials.
To improve effectiveness
Businesses can improve effectiveness by improving their performance to meet set targets and goals.
Stakeholders
are individuals or groups that have a vested interest in the activities of a business.
Business STAKEHOLDERS
Owners
Individuals who establish, invest, and have a share in a business, often with the goal of earning a profit from its operations.
Managers
Individuals who oversee and coordinate a business’s employees and lead its operations to ultimately achieve the business’s objectives.
Employees
Individuals who are hired by a business to complete work tasks and support the achievement of its objectives.
Customers
Individuals or groups who interact with a business by purchasing and utilising its goods and services.
Suppliers
Suppliers are individuals or groups that source raw materials, component parts, and processed materials and sell them to a business for use in the production of its goods and services.
General community
The general community is the individuals and groups who are impacted by a business’s operations and decisions, often because they are in close proximity to the business.
Management STYLES
Autocratic management style
involves a manager making decisions and directing employees without any input from them.
Persuasive management style
involves a manager making decisions and communicating the reasons for those decisions to employees without their input.
Consultative management style
involves a manager seeking input from employees on business decisions but making the final decision themselves.
