deck_14487470 Flashcards
Define Sole traders
owned by one person- responsible for all aspects of the business - (unlimited liability)
Define Partnership
a business structure that involves between 2 and 20 people who run a business together- unlimited liability - partners may have different sized shares
Define Limited Companies
a business with 2-50 shareholders, whose stocks cannot be bought or exchanged on the stock market
Define Listed Companies
a business without a minimum of shareholders, whose shares are freely traded on the stock exchange
Define Social Enterprises
Private Sector business that exists to distribute profits to benefit the community or social need
Define Government Business Enterprises
A business that is government-owned and operates in the public sector
Define Employees & Shareholders
Employees want fair wages, but this will reduce the business’ profit and dividends shareholders receive
Define Management & Customers
management want to make a larger profit, so they keep prices high, leads to upset customers who want fair prices
Define Suppliers & members of community
suppliers may use unethical practices to keep prices down, this can then upset members of the community
Define Communication
The ability to transfer information from a sender to receiver, as well as listen to feedback
Define Delegation
The transfer of authority and responsibility from a manager to an employee to carry out specific activities
Define Planning
ability to define business objectives and decide upon the methods and strategies to achieve them
Define Leadership
The ability to influence and motivate people to work towards the achievement of business objectives.
Define Decision-making
The ability to identify the options available and then choose the best specific course of action from the alternatives
Define Interpersonal
The skills used to interact with others, and the ability to deal or liaise with people and build relationships with staff
List of Business Objectives
- make profit- increase market share- improve efficiency - improve effectiveness - fulfill market need- fulfil social need- meet shareholder expectations
Define Profit
Difference between revenue and expensesrevenue - expense
Define Market Share
Percentage of the market controlled by the business
Define shareholder
owner of a company
Define efficiency
best use of resources in the production of goods and/or services
Define Autocratic management style with dis / adv
Autocratic: manager tells staff what decisions have been made - nature of task : simple tasks- time: useful in times of crisis- employee experience: if they lack knowledge
Define Persuasive management style with dis / adv
Persuasive - manager attempts to convince employees that the decisions (sell the decision) that have made are the correct one while retaining final decision-making powernature of task: simple taskTime : quick decisions are neededEmployee experience : if they lack knowledge
Define consultative management style with dis / adv
manager seeks input from employees before making decisions nature of task: more complex / challengingTime : if their is time for feedbackEmployee experience : more informed
Define participative management styles with dis / adv
manager unites with staff to make decisions together nature of task: complex / creativity neededTime : sufficient timeEmployee experience : knowledgeable
Define Laissez-faire management styles with dis / adv
employees assume total responsibility for, and control of, workplace operationsnature of task: high creativity requiredtime : all time scenarios Employee experience : highly skilled
Who are stakeholders?
stakeholders are people/groups who have vested interest in a business
define owners
also known as shareholders own a business
define managers
have responsibility of running a successful business
define employees
people who work in business in exchange for money
define customers
obtain quality goods / services
define suppliers
provide materials used in production process
define general community
people who live within the area that the business operates
define corporate cultures
system of shared values and beliefs of people within an organization
define official corporate culture
values and beliefs the company is trying to convey to public- mission statements - logan / slogans- stated values / policies
define real corporate culture
actual values and beliefs present in the company- way staff dress / uniform- behavior’s and way employees treat each other
Types of business sizes
small - 0-20 employeesmedium - 20-200 employeeslarge - 200+ employees
Private Sector
sole traders, partnerships, private companies, public companies, social enterprises
Public Sector
government business enterprise
Cost of Setup /government regulations different types of businesses
none - government business enterprise with high government regulationlow - sole trader, partnership, medium - private limited company high - public listed company social enterprise depends on whether its sole trader, partnership etc.
Characteristics of types of businesses
- profits- decision making- owner liability - ownership- government regulation- cost of setup
examples of stake holders
- owners, managers, employees, customers, suppliers, community, government,
Interests of stake holders
Owner - get a return on investment through dividend / capital gain Manager - be involved in setting objectives / ensure to achieve goalsemployee - earn fair pay, good working conditionscustomer - receive good quality productssupplier - see business increase sales so they can supply more and be paid on time general community - see a business thrive, employ people and sell products at fair prices
define business objective
desire of achievement providing direction for a business. can be short, medium or long term social or financial goal. SMART SPECIFIC MEAUSRABLE ACHIEVABLE RELEVANT TIMEBOUND
considerations of stake holders
owner - prefer town/hold shares in ethical businessManager - incorporate csr in decision making for reputationemployee - want to be proud of employer be treated nicecustomer - purchase quality / sustainable products from ethical businesses supplier - ensure csr practice’s general community - would like businesses to support local programs, minimize waste, not pollute environment
elements of corporate cultures
- core values- ritual and celebrations- communication - heroes - physical environment
