business unit 3 aos 1 key knowledge

Question 1

advantages of sole trader

Answer 1

complete control, no partner disputes, less costly

Question 2

disadvantages of sole trader

Answer 2

unlimited liability, ends when owner dies, difficulty raising finances

Question 3

advantages of partnership

Answer 3

can still operate if one person partner dies, less costly

Question 4

disadvantages of partnership

Answer 4

unlimited liability, partner disputes, difficulty finding a partner

Question 5

advantages of private ltd companies

Answer 5

limited liability, company can still operate if owner/s/shareholders die

Question 6

disadvantages of private ltd companies

Answer 6

more expensive than sole traders/partnerships, must produce annual audit report, public disclosure of certain info

Question 7

advantages of public listed companies

Answer 7

limited liability, can attract finance easily, greater growth potential, can still operate is owners/shareholders die

Question 8

disadvantages of public listed companies

Answer 8

more expensive than sole traders/partnerships, must publish an annual audit report, public disclosure of certain info

Question 9

advantages of a social enterprise

Answer 9

meeting needs positively affects market share, can open up to more markets where others dont invest

Question 10

disadvantages of a social enterprise

Answer 10

hard to obtain capital, expensive, hard to focus on financial and social goals

Question 11

advantages of gbe

Answer 11

provides healthy competition, can carry gov policies to where other businesses may not invest, can operate with some gov independence

Question 12

disadvantages of gbe

Answer 12

political interference, less accountability and less productivity, management is less effective

Question 13

internal stakeholders

Answer 13

directors, managers, employees, shareholers, owners

Question 14

external stakeholders

Answer 14

interest groups, suppliers, consumers, community members, government, competitors

Question 15

advantages of autocratic

Answer 15

clear instructions, little uncertainty, employees work faster

Question 16

disadvantages of autocratic

Answer 16

employees dont feel valued, sharing ideas is discouraged, low job satisfaction, us and them mentality

Question 17

advantages of persuasive

Answer 17

employees are less likely to resist change is the decisions are explained, more trust and support

Question 18

disadvantages of persuasive

Answer 18

little communication, sharing ideas is discouraged, low job satisfaction

Question 19

advantages of consultative

Answer 19

employees feel valued, higher job satisfaction, more effective decision making because more people can fine tune

Question 20

disadvantages of consultative

Answer 20

time consuming, some employees may feel left out

Question 21

advantages of participative

Answer 21

higher job satisfaction, employee/employer relo improves, employees have a higher chance of acquiring skills

Question 22

disadvantages of participative

Answer 22

not everyone wants to contribute, internal conflict, time consuming

Question 23

advantages of laissez faire

Answer 23

employees gain a sense of ownership, more creative freedom, open communication

Question 24

disadvantages of laissez faire

Answer 24

management has a complete loss of control, focus on meeting objectives is eroded

Question 25

elements of corporate culture

Answer 25

values/practices, heroes, rituals/celebrations, symbols