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BUSINESS MANAGEMENT > BUSINESS FOUNDATIONS - 1A > Flashcards

BUSINESS FOUNDATIONS - 1A Flashcards

1
Q

define sole trader

A

business with one person who owns and runs the business. owner is legally responsible for all aspects of the business including unlimited liability

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2
Q

advantage/disadvantage of sole trader

A

complete control, unlimited liability

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3
Q

define partnership

A

business with 2-20 owners. general is where all partners are equally responsible, limited is where liability for one or more partners is limited

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4
Q

define company

A

owners within the business are called shareholders who have limited liability meaning their legal liability is limited to the extent of value of their shareholdings

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5
Q

define private limited company

A

restricted to 50 shareholders with shares sold privately, not open to public trade

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6
Q

advantage/disadvantage of partnership

A

inexpensive to set up, unlimited liability

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7
Q

advantage/disadvantage of private company

A

limited liability, reporting requirements

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8
Q

define public listed company

A

company has shareholders who own and directors who run it. listed on ASX for public to trade shares

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9
Q

advantage/disadvantage of public company

A

limited liability, large expense to set up

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10
Q

define social enterprise

A

business exists primarily to fulfil a vision that benefits the public rather than for profits, there to make a positive social impact on the community

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11
Q

advantage/disadvantage of social enterprise

A

good reputation, can be hard to raise money

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12
Q

define government business enterprise

A

organisation that undertakes a commercial activity ob behalf of the government, however are still run by an owner

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13
Q

advantage/disadvantage of gbe

A

shared workload, may not gain as much profit

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14
Q

define businesses

A

lawful commercial activities to earn a profit. is an entity involved in the provision of goods and services to customers

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15
Q

define business objectives

A

business objectives are the goals or the direction that the business aims to achieve within a certain period of time. an example of this is the objective to increase market share

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16
Q

what are the 4 shareholder expectations

A

to make a profit
to increase market share
to fulfil a market or social need
to meet shareholder expectations

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17
Q

define to make a profit

A

the idea of making enough sales to exceed expenses, generating a profit through the sales of goods and services

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18
Q

define to increase market share

A

market share is the proportion of the market controlled or owned by a particular business or product, in which businesses compete against each other to gain the most

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19
Q

define to fulfil a market or social need

A

if enough people have a want or need, it creates a gap in the market which businesses can try to satisfy and fulfil the market or social need

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20
Q

define to meet shareholder expectations

A

shareholders are the people who own the business which have an expectation to make a return on their investment, which is businesses fulfil, it means other people will be attracted to buy shares

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21
Q

list the 8 stakeholders

A 
managers
employees
community
government
suppliers
competitors
shareholders
customers
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22
Q

define managers

A

responsible for different functions of the business, making decisions and giving directions helping to achieve objectives

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23
Q

interests of managers

A

involved in setting objectives and ensuring the business is achieving them

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24
Q

CSR consideration of managers

A

managers need to make decisions considering CSR and achieving long term goals

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25
Q

define shareholders

A

those that own part of the company and expect some sort of return on their investment

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26
Q

interests of shareholders

A

strive for a return on investments through capital gains and improved profits

27
Q

CSR of shareholders

A

managers being transparent with shareholders about future of the business

28
Q

define employees

A

those that work for the business, dedicating their time and efforts in exchange for money

29
Q

interests of employees

A

fair pay, safe working conditions and ongoing employment

30
Q

CSR of employees

A

ongoing training, extra pay / rates

31
Q

define customers

A

purchases goods or services for the business

32
Q

interests of customers

A

expect good quality at a fair price

33
Q

CSR of customers

A

sourcing from ethical suppliers

34
Q

define suppliers

A

those that provide a business with materials and other resources so they can produce products

35
Q

interests of suppliers

A

expect strong relationships and to be paid on time

36
Q

CSR of suppliers

A

local and ethical suppliers

37
Q

define competitors

A

rival businesses that sell similar products in the same market, creating possible combative advantage against the other

38
Q

interests of competitors

A

expect fair and healthy competition

39
Q

CSR of competitors

A

fair competition and not going out of their way to ruin another business

40
Q

define government

A

group of people with the authority to govern a particular area in which businesses need to adhere to

41
Q

interests of government

A

expect to help the economy and community by providing local employment and paying taxes

42
Q

CSR of government

A

using local employees

43
Q

define community

A

businesses have a responsibility to the community they operate in

44
Q

interests of community

A

expect businesses to give back to community and providing employment for locals

45
Q

CSR of community

A

ethical waste disposal, minimising environmental impact

46
Q

define CSR

A

commitment displayed by a business to consider ethical, environmental and community based mannerisms. involves the business’s ability to go beyond legal requirements within social, environmental and economical aspects

47
Q

potential conflicts between employees and shareholders

A

employees require safe working conditions and reasonable wages, which would decrease profit and dividends to shareholders

48
Q

potential conflicts between management and customers

A

management attempts to make a profit and high prices to satisfy shareholders needs whereas customers want low prices

49
Q

potential conflicts between management and suppliers

A

management wishes to keep costs low but suppliers providing ethical materials will charge more

50
Q

define operations

A

responsible for production of the businesses product with managers ensuring they are produced correctly

51
Q

what does operations involve

A

planning activities

purchasing inputs

52
Q

operations relation to BO

A

allows the business to produce a good product which will increase sales, increasing product

53
Q

define finance

A

responsible for managing the financial aspects of the business

54
Q

what does finance involve

A

developing financial policies

raising finance

55
Q

finance relation to BO

A

important that a business is able to manage its finances well so that profit can be increased

56
Q

define human resources

A

responsible for coordinating all activities involved from acquiring to terminating employees and managing performance

57
Q

what does human resources involve

A

establishment, maintenance and termination of employees

58
Q

human resources relation to BO

A

employees need to have a good understanding of business and products to be able to efficiently sell the product

59
Q

define sales and marketing

A

responsible for marketing mix, promoting the business and selling to potential customers

60
Q

what does sales and marketing involve

A

promoting the business

selling products

61
Q

sales and marketing relation to BO

A

important for increasing market share, profit and sales

62
Q

define technology support

A

responsible for installing and maintaining technology, as well as providing assistance to employees

63
Q

what does technology involve

A

installing software

laptops, PC’s, mobile phones

64
Q

technology relation to BO

A

important for business objectives because you need to be up to date with technology including having an online store to increase sales

BUSINESS MANAGEMENT (6 decks)

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