EMS Exam 22 November Flashcards
What is the meaning of capital
Capital is anything that increases one’s ability to generate value.
1) Financial capital (money) raised to operate and expand a business. Accountants distinguish between borrowed capital and own capital used to establish and run a business.
What is Financial capital
Financial capital is the money that is used to generate income or invest in a business.
What is borrowed capital
Borrowed capital is any money borrowed by an entrepreneur or business owner for the purpose of establishing and running a business.
What is own capital
Own capital refers to any money (that comes from personal savings) invested in the business by the entrepreneur or owner.
Where is money usually borrowed from
Money is most often borrowed from a bank or an investor (often a family member or friend) who has confidence in the future profitability of the business.
What funds do new entrepreneurs use to begin with
Most entrepreneurs begin their business by using their own savings, showing that they believe in their business idea and plan. They are willing to risk their own money in their business venture.
Why are financial institutions more likely to invest in entrepreneurs that have used their own money to start their businesses?
Financial institutions (such as banks) prefer to lend money to a business owner who has already invested in his or her own business. This is because they believe the business owner is more likely to work harder and try every means possible to avoid his or her business failing. This provides greater security for any borrowed money.
What are some other forms of capital?
Capital generally refers to goods that help to produce other goods in the future, the result of investment.
What features do capital goods have
They can be used in the production of other goods (this is what makes capital a factor of production).
They are human-made.
They are not used up immediately in the process of production, unlike raw materials.
They are stock items and their value can be calculated at a point in time.
Can capital goods be used in the production of other goods
Yes
What are the 4 factors of production
Labour
Land/Natural Rescources
Entrepreneurship
Capital
What is labour
Labour is one of the main factors of production.
Labour refers to the mental and physical efforts of people used for the production of goods and services.
The Human energy and mental skills are used to produce economic goods.
What does the supply of labour depend on
The supply of labour depends on:
the size of the population
its geographical distribution in relation to businesses and resources
its level of education and training its organisation (in terms of trades unions and similar organising agencies)
its composition by age and gender.
What are the 3 types of labour
Unskilled
Semi- Skilled
Skilled
What is unskilled labour
Unskilled labour refers to workers that have had no skills training or experience in any particular working environment.
Extra note don’t learn |
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(The South African labour market is flooded with unskilled workers, most of whom are unemployed.)
What kind of work does unskilled labour involve
The work of unskilled labour involves the performance of simple duties which need little or no independent judgement or previous experience. Examples of unskilled labour include general farm work, cleaners, sweepers and loaders.
What is semi-skilled labour
Semi-skilled labour refers to workers that have more training and skill than unskilled labour but less training than skilled labour.
What kind of jobs does semi-skilled labour involve?
A semi-skilled worker can carry out a simple job with the help of simple tools and machines. Examples of semi-skilled jobs are assistant plumbers and electricians, waiters and trainee motor mechanics.
For example, waiters need to train before they can start working at a restaurant. They also need to learn what is on the restaurant’s menu so that they can assist customers.
What is skilled labour
A skilled worker is any worker who has some special skill, knowledge, or who has acquired ability in their work. A skilled worker may have studied at a college, university or technical school, or have learned their skills ‘on the job’.
What are some examples of jobs that require skilled labour
Examples of jobs that require skilled labour are computer programmers, chefs, hairdressers, draughtsmen and motor mechanics. Skilled labour is more costly than unskilled and semi-skilled labour.
Why are wages and salaries important to production
Wages and salaries form part of production costs so it is important that a business employs the most suitable qualified people in particular jobs, to carry them out efficiently and cost-effectively.
What is the success of a business dependent on
The performance of the workers
What are some other laws that protect workers
Other laws that protect workers are the Employment Equity Act and the Labour Relations Act.
There is also an organisation, the CCMA that helps ensure fair employment practices in the workplace.
What does the employment equity act ensure
The Employment Equity Act makes sure that businesses treat their workers fairly by removing all forms of discrimination in the workplace. It also covers affirmative action measures that apply to certain designated employees.
What does CCMA stand for
Commission for Conciliation, Mediation and Arbitration
What is the role of the CCMA
Its role is to resolve (mediate) labour disputes referred to it in terms of the Labour Relations Act.
Employers generally treat their employees fairly in order to keep good, reliable workers.
What are some natural resources
Natural resources (most often referred to as land by economists) are the naturally occurring materials of the planet that are used for the production
Natural resources
of goods and services, including:
the minerals and nutrients in the ground
the water
the land itself
vegetation on the surface
wildlife
air.
What is production
Production is, in fact, the basic process of transforming naturally occurring materials that provide little satisfaction to people in their natural state, to goods and services that provide more satisfaction to people.
What falls under the definition of land
Everything physical (other than people) which is not the result of human effort falls within the economic definition of land.
This concept therefore includes all natural materials, forces and opportunities. The trees in a naturally occurring forest are land; in a cultivated forest they are wealth.
To understand the meaning of land as a factor of production, we must think of land in this sense, as the entire set of natural opportunities.
What is entrepeneurship
Entrepreneurship is the special sort of human effort that takes on the risk of bringing labour, capital and natural resources together to produce goods.
Entrepreneurship is the factor that organises the other three. Without someone to organise production, the other three factors do not produce. This resource takes the risk of organising production before anything is produced and with no guarantee that production will be successful.
What is a key component of entrepreneurship
A key component of entrepreneurship is risk.
What is an entrepreneur
An entrepreneur is a person who starts a business, taking a financial risk in the hope of making a profit. A successful entrepreneur makes sure that the product or service meets the needs or wants of the people he or she will sell to.
Some characteristics of an entrepreneur are:
hard working
prepared to take risks
prepared to persevere
good with people
motivated
able to work on their own.
innovative
How do entrepreneurs affect the economy
Entrepreneurs stimulate the economy by creating jobs and further opportunities for other entrepreneurs. They also generate profit that can be taxed by the government.
What is the payment of labour called
The payment of labour is wages and salaries. The economic term is ‘wages’.
How does the amount of money paid in wages and salaries differ (from labour groups)
The more competition there is for available job openings, the less money people are offered to do the work.
However, highly skilled and specialised workers tend to be scarce and are therefore paid more as a reward for their efforts in improving their own knowledge and skills, and also to entice them to accept a particular job offer.
What is the payment for entrepreneurship
Profit is the payment for entrepreneurship.
What is the payment for the use of capital
Borrowed capital is paid for in interest charged on a loan from a bank or investor in the business. Own capital is also paid for by interest lost as the capital is not invested in a financial institution and therefore does not earn interest for the owner.
What are overhead costs
business expenses, such as rent, that are not directly attributable to any department or product
What is the payment for the use of land and business premises
Rent is paid for the use of land and business premises. If the property is owned by the business, the rental that could be charged for the use of the property by other parties is taken as the rental cost to calculate overhead costs.
What are the 10 types of markets
Wholesale Retail Farmers Craft Flea Service Factor Labour Financial Capital
What can a market be
A market can be a physical place, like a shop or it can be a virtual place, such a website on the Internet. As technology has improved, markets have changed and some have become more specialised.
What is a wholesale market
Wholesalers purchase large quantities of goods from different manufacturers and suppliers. Customers visit the wholesaler and select the goods they want to purchase. The wholesaler re-packs the goods in smaller quantities for their customers. The wholesaler’s customers are usually small businesses called retailers.
What is a retail market?
Retailers can purchase goods directly from manufacturers or from wholesalers. They also buy goods in big quantities and re-sell them in much smaller quantities to their consumers. Retail stores include supermarkets, department stores, specialist stores such as boutiques and stores that sell sports clothing or equipment, as well as furniture and equipment shops.
What is a Farmers market
Farmer’s markets sell fruit, vegetables, meat and dairy products directly from the farmer to the local community.
What is a craft market
Craft markets offer various types of products that have been handmade, such as cakes, biscuits, clothing, shoes, bags and wooden toys.
What is a flea market
Flea markets offer a range of different products that people have obtained for re-sale, such as secondhand books; used goods such as crockery, kitchenware and furniture; secondhand clothes or factory rejects.
What is a service market
A service market is where a service, expertise, skill or experience is sold. For example, a lawyer sells his or her knowledge, skills and experience of the law to a client who needs this type of service. (office or shop)
What is a Factor market
A factor market is the place where the factors of production are bought and sold.
What are the 4 factors in a factor market
Capital:
money invested in business, manufacturing, buying and selling this factor market is called a ‘financial market
Labour:
• skilled, semi-skilled and unskilled workers
• people are paid to do a specific job
• people’s time, expertise and skills are paid for
• this factor market is called a ‘labour market’
Resources:
all raw materials and other resources a business needs in order to operate
Entrepeneurship:
entrepreneurs are needed to start businesses using capital, purchase resources and pay for labour in order to produce goods or services to meet the needs and wants of their consumers
What is the labour market
The labour market is the place where the employer and employee come into contact. This is not a specific place. Employers advertise job vacancies in newspapers, magazines or on the Internet, or they pay an employment agency to find people to fill vacancies. People then apply for positions.
What is a financial market
A financial market is any type of financial transaction that helps a business grow or helps an investor to make money. There are two types of financial markets, namely capital and money markets.
What is a capital market
A capital market is where money, in the form of shares, is obtained to start large businesses. Members of the public share in a public company. The company uses the money to purchase assets and pay for labour and operating costs. The holders of these shares are called shareholders. The company only has contact with the shareholders at annual general meetings and when a dividend is distributed. . When the company starts to do well, other members of the public will want to purchase shares and so the price or value of these shares increases until a shareholder is prepared to sell all or some of their shares.
What is a money market
A money market is a place where a business can obtain cash or credit. This can take the form of a loan from a bank, credit from a supplier or a bank overdraft.
What is a salary vs a wage
Salaries are paid to semi-skilled and skilled workers such as secretaries, accountants, managers and supervisors.
A wage is an hourly rate that is paid to workers at the end of the week according to the number of hours they have worked. Wages are usually paid to unskilled and semi-skilled workers, such as factory and mine workers.
What is a dividend
A dividend is the portion of profit that the shareholder receives according to the number of shares they own.
What is a bank loan
A bank loan is money the bank loans the business. The business repays a specific amount over a specified number of months until the debt plus interest is repaid.
What is credit
Credit is when a supplier allows the business to take the goods and only pay for them at the end of the month or after 60 days.
What is bank overdraft
A bank overdraft is a facility where the bank will allow a business to withdraw more money than they have in their cheque account. A maximum amount is stipulated. The business will pay interest on the amount overdrawn for the number of days it was overdrawn.
Define government
Government is a group of people who govern the citizens of a country.
This means that the government exercises control over the people who live in the country.
True or false
SA is a democracy
South Africa is a democracy. This means that the citizens of the country decide who governs them.
What are the main 3 role players in the country
The three main role players in the economy are government, business and households.
What is a political party
It is a person or group of peoples’ belief on how the affairs of the state or country should be managed. In South Africa there are 13 political parties represented in government.
What is politics
Politics is the knowledge of government affairs
What is the responsibility of the government`
Government receives money from income tax, levies and duties, such as customs duties and VAT (value-added tax). This money is used to run the country, and provide infrastructure and services, such as transport, electricity, national roads, health and education.
What are the different levels of government
The national government
The provincial government’
The local government
What is Cabinet
Cabinet: the president is the head of cabinet. He is assisted by the deputy president and ministers who deal with the day-to-day running
What is the national government
The national government is split into three tiers, namely: cabinet, parliament and judiciary. Very simply put,
Parliament makes the laws,
The cabinet ensures that they are carried out and
The judiciary decides whether the law has been broken.
What are the different levels of government
South Africa has three levels of government (national, provincial and local) as well as a separate judicial system.
All people, groups and organisations - including the government - are subject to the Constitution which is the supreme law of the country.
What does the following mean
Judicial: to do the law
Supreme: the highest authority in the country
Look up page 14 to see the diagrams of the government of SA
As well as page 15 for the cabinet president
And paid 16 for the provincial government premier
Where is parliament
Parliament is situated in Cape Town and consists of two ‘houses’, the National Assembly and the National Council of Provinces (see page 14).
How many people represent the National Assembly
The National Assembly has 400 members who represent the different political parties and are elected every five years in a national election. They are responsible for drawing up laws.
What does the National Council of provinces take care of
The National Council of Provinces is a body that was created to make sure that all the provinces are involved in or co-operate in the legislative process.
What is economic development
development: a higher standard of living due to an increase in the number of goods and services produced
What is the judiciary made up of
Judiciary is made up of the various courts in the country, such as the Supreme Court and Magistrates Courts.
What is the provincial government
There are nine provinces in South Africa and each one has its own provincial government. Members of the provincial government are also elected every five years. The executive council of a province consists of a premier and a number of members (MECS). Premiers are appointed by the President of the country. Decisions are taken by consensus. Each member has a department to manage.
What is local government
Local government consists of municipalities. Large areas, such as Johannesburg are governed by metropolitan municipalities. The smaller Services pro areas are governed by local municipalities who are grouped into districts. Local government is responsible for local roads, traffic, clinics, libraries, sewage, water and transport.
What are the roles of the different levels of government in respect of households in the use of resources and services(both consumer and producer)
Each level of government receives funds and must use this to benefit the consumers and producers in the areas
What is the role of the national and provincial government in respect of households?
The ministers in the national and provincial cabinet all have specific areas of responsibility which cover the services that they must provide the consumer and producer.
What are the services provided by the national and provincial governments?
Education: schools and teachers
Provides hospitals and pays salaies for the staff and doctors
Ensures labour laws are fair and unbiased for workers and employers
Provide sports and Recreation facilities
Promote arts and Culture
Ensures women, youth, children and people with disabilities are able to function to the full capacity in
Society
Ensures safety of Citizens and businesses through police and correctional services and military.
What is the role of the provincial government in respect of households?
The provincial government is responsible for providing the following services
Water sanitation and electricity on a provincial scale
As well as Health Care and education services eg. provincial , hospitals ,clinics,education and housing
How did the provincial government use resources in respect of households
The provincial government ensures to use the provincial budget capital resources in the most efficient manner
They sure land and natural resources are managed efficiently and in a sustainable manner
What is the role of government as a consumer and producer in respect of households?
The government is both a consumer and a producer and the household is also a consumer and producer. Both government and households interact to provide for each other’s needs and wants.
Government is a consumer as it purchases labour, and goods and pays for services provided by members of households. It also produces electricity and builds hospitals, police stations and courts for households.
Households provide the labour and capital for the government and consume electricity and water, and use the infrastructure, such as roads.
What is the role of government as a producer and consumer in respect of business
All levels of government are consumers in that they purchase goods and services from businesses to build infrastructure, hospitals and other government buildings, and repair and maintain government assets. Government is also a producer in that it provides infrastructure, such as transport systems (roads, harbours and airports) so that businesses can operate more efficiently.
Businesses are consumers because they pay for certain government services such as electricity and water. They also sell their goods and services to the government or government organisations. Business profits are taxed by the government and the money is paid to the government, who produces the relevant services.
What services does government have to provide in respect of business
Provide electricity water and refuse removal
Promote tourism and encourages businesses to be involved in tourism activities
Encourages business expansion and development in the province by offering incentives and assistance to the business
Provides training and information on health and safety for employers and employees through the provincial health departments
Uses correct tender procedures for local businesses and producers to provide goods and services to Provincial government
Promotes international trade through trade agreements with other countries
How does the government use their resources in the respect of business
The insured provincial roads
Promotes tourism in the province and encourages businesses in promoting tourism
Encourages business involved in farming ,forestry and fisheries in the area
Develops legislation to protect Labour and the environment
Provide fresh produce markets and businesses expos to encourage the production of goods and services
How does the national budget work
Every year in February, the Minister of Finance presents the National Budget to Parliament. The Finance Minister explains how the government will collect money in the next financial year and announces how this money will be spent.
Total spending
Education
The budget continues to support job creation, with a particular focus on unemployed youth. The budget provides for personal income tax relief.
Measures are proposed to increase household savings.
Strengthening financial management in the public sector, pursue value for money with the greatest possible vigour and ensure that taxpayers’ money is well used.
Fraud and corruption will be combatted through changes to procurement policies and practices and tough enforcement of the law.
Define government revenue
The term ‘government revenue’ refers to the income that government receives from various sources. This is the money available to supply services to the country and to pay government workers.
What is Direct tax
Direct taxes are drawn from personal income tax payments from individuals and from taxes paid by businesses on their profits.
A taxpayer pays a direct tax to a government for different purposes, including real property tax, personal property tax, income tax or taxes on assets. Direct tax is based on the ability to pay, i.e. those who earn more or who have more wealth pay more taxes.
Define real property tax
A tax that may be charged on land or buildings
Define personal property tax
A tax that may be charged on personal property such as money shares or goods
As an example inheritance tax charged on property when the owner dies
Define corporate tax
Tax charged on the profit of a company
What is indirect tax
Indirect taxes are levied (imposed or charged) by the government on our consumption and expenditure.
Other indirect taxes are VAT on goods and products bought by consumers and excise duty (a tax that is paid by manufacturers of certain goods, e.g. car manufacturers). And fuel levies
What are excise duties
Excise duties are taxes that government charges on certain goods, and are applicable to the following products consumed in the whole of the Southern African Customs Union (SACU),
BEER
Fuel/Petroleum products
Tobacco products
Malt Beer
Traditional African Beer
PUFF
Spirits/Liquor products
Wine
Other fermented beverage
What does government spending focus on
Government spending focuses on providing citizens with education, health care, safety and security, and the necessary infrastructure (roads, harbours, airports, railways, hospitals and schools) to support these services.
Explain the Education part of government expenditure
Government is responsible for providing school buildings, furniture and equipment, and qualified teachers, to ensure that all young South Africans have access to an education that will prepare them for a productive working life.
Briefly explain what falls under the health sector in government expenditure
Primary health care, in the form of local clinics, is provided by government’s Department of Health. The Department gets its funds from the National Budget and patient fee contributions. The Department has the following commitments:
increasing life expectancy
lowering levels of mother and child deaths
combatting HIV and AIDS and
decreasing the burden of disease
from tuberculosis (TB)
strengthening the effectiveness of the health system.
What falls under the housing sector and government expenditure
This government department continues to focus on providing more homes and eliminating informal housing areas in the shortest possible Time. the process also includes providing support infrastructure for the homes in terms of sanitation water and electricity
What are social grants (government expenditure
The Department for Social Development is responsible for providing the following social grants to qualifying citizens:
old age (pensions) disability war veterans child support foster care care dependency grants in aid.
The Department for Social Development also looks after a range of social issues with the support of government funding, such as:
National Food Relief Programme funding for Early Childhood Development Centres
home- and community-based care (for people living with HIV and AIDS)
child protection services
services to the youth
registration of shelters and drop-in centres.
What entities fall under the Department of Transport
The following are some of the public entities that fall under the Department of Transport:
The Road Accident Fund
Transport
Cross-Border Road Transport Agency The South African Civil Aviation Authority
Ports Regulator of South Africa Passenger Rail Agency of South Africa
The names of each of these agencies indicate the specific areas for which they are responsible.
What is the budget provided for in terms of addressing inequalities
The budget provides for:
social grants to almost a third of South Africa’s population
largely free services at public health facilities
no-fee schools for 60 per cent of learners
housing, water and electricity in poor communities.
In addition, provision of health care, education and basic living standards should translate into educated, healthy citizens who are able to make a contribution to the growth of the economy by working in productive jobs.
What is a lifestyle
Lifestyle is the way individuals, families (households) and societies live. It includes a person’s sense of style, his or her attitudes and possessions and the things that he or she does.
Lifestyle is a behaviour and is shown in a person’s attitude, values, the way he or she allocates resources and what the person does for fun. Lifestyle also reflects a person’s culture, family and friends.
What is a self-sufficient Society?
A self-sufficient society can survive and provide for its needs without any outside help. People in self-sufficient societies learn vital skills from past generations on how to grow and preserve food, make and repair tools, and make and mend clothing.
Eg. The Khoikhoi and San are of early self-sufficient societies in South Africa.
A self-sufficient society can also be seen as independent of the state or government.The Amish people in America are an example of modern self-sufficient society.
What is a modern society
In modern society, people are less dependent on each other for survival.
They are dependent on their employer for income and shops and supermarkets for food, clothing and other manufactured products. People are dependent on their income to survive.
Modern societies are identified by specialisation, social groups and increased movement of factors of production. What is specialisation?
Workers become specialised in a specific field, skill or task. Tasks are divided among workers. This division of labour increases productivity as each person becomes an expert doing their part of the job and can do it quicker than if they had to make the entire product themselves.
What are social groups?
People form social groups within their social circle. Their social circle will depend on their lifestyle and standard of living. Eventually, the people in their social group will become their main support. Their choice of social group reflects their individual interests, goals and ambitions.
How do factors of production become more efficient
As the world becomes a global village through improved communication and transport, all the factors of production also become more mobile. Labour, money and raw materials can be moved to any place in the world to increase productivity and profit.
What are rural societies
Rural societies form in the countryside, away from the towns and cities. Fewer people live in rural areas than in towns or cities. There are fewer employment opportunities in rural areas and members of rural societies spend much of their time producing food for their families.
Family, culture and customs are a very important part of rural society. Extended family is considered as important as immediate family. They support each other both emotionally and financially. Ubuntu
DONT STUDY
Read through the following
However, Study the table on page 31
What is unemployment
Unemployment is when a person is actively looking for a job but is unable to find work or when a person does not have a job with a regular income.
How does a country measure its the unemployment rate
A country measures its unemployment rate by dividing the number of unemployed people by the number of people in the labour force.
What is an indicator of the economy’s health
Unemployment is a serious problem and is often seen as an indicator of the health of an economy. A large volume of unemployed people in a country could indicate a struggling economy.
What are some causes of unemployment?
Poor education and an uneven balance of skilled, semi-skilled and unskilled workers is a major cause of unemployment.
What are the results of unemployment?
Unemployment has many serious consequences: loss of income and a decline in the standard of living
drop in demand for local products and services which leads to reduced sales and less profit for business owners
government loses income from reduced income tax
people could resort to begging and crime
divorce, poor health and alcoholism.
What are some productive use of resources to promote a healthy environment
Sustainability is the key to using resources in a manner that promotes a healthy environment. Efficiency is about making the best possible use of resources.
Increase productivity
Improve health and safety
Promote the protection of the environment
Promote development that will avoid destroying and using up natural resources.
RRR
Define economics
The study of the way in which one acquires and uses limited resources to produce goods and services that satisfy a community’s wants and needs
What is the economy
The state of a country or region in terms of the production and consumption of goods and services and the supply of money
How to keep a business running
Find cheaper versions of material
Learn to Delegate. It’s not easy to delegate tasks. …
Invest in Your Employees. Your business is as good as the people working for it. …
Use Technology to Your Advantage. …
Stay Organized with Filing Systems. …
Do Your Bookkeeping.
What are some examples of the productive use of resources to promote a healthy environment:
Using recycled paper for packaging
Using energy-efficient appliances and lights
Ensuring proper solid waste management at the municipal level encouraging recycling by industry, business and households using natural fertilisers and pest control methods.
Define sustainability in a business
Sustainability is a business approach to creating long-term value by taking into consideration how a given organization operates in the ecological, social, and economic environments
Who are the two main role players in a goods and service market?
House holds and firms
Give the THREE types of cash or credit a business can obtain and write a one-sentence description of each.
Loan: money the bank loans
Credit: When abuisness allows someone to buy goods and pay for it at the end of 60 days
Overdraft: the bank allows the business to take more money than it has
What is a business function
The main activities that are required in a business that allow the business to operate efficently
Give 12 examples of a business function
Admin
Filing
Marketing
Canteen
HR
General Management
Purchasing
Finances
Public Relations
Production
Risk management
Email Services
What are the four types of ownership for a business
Closed corporation
Public and private companies
Sole traders
Partnership
Define forms of ownership
The legal position of the business and the way it is owned.
Name the three types of management and describe them
Top management is usually represented by the owner/s of the business or the chairman and board of directors. Top management is responsible for clarifying the business’s vision, identifying its goals and employing specialised staff to handle the overall running of the business.
Middle management breaks down the overall Vision and goals of top management in to work units.
Lower management levels are supervisory and are directly involved in the day-to-day operations of the business they are closely involved with problem-solving and decision-making related to the daily activities of the teams
What are some management tasks
Organising
Planning
Leading
Controling
What do managers usually monitor in the process of controlling
Keeping track of how happy employees are in their work environment
How well each employee is doing their job
What areas needed training
Whether or not the business is making good progress towards its goals
What are the 3 styles of management
Autocratic
Directive autocratic
Permissive autocratic
What does autocratic mean
Being completely in charge and making decisions by yourself (without taking feedback)
Explain what a permissive management style is like
a permissive manager allows employees to take part in decision-making and also gives a large degree of Independence in completing written work activities. this style is only really successful with inspirational management that understands the different areas of the initiative being taken by the employees and strong and creative employees who share the same vision throughout the organisation
Explain what a directive democratic management style is like
a directive democratic manager makes decisions participatively which means their employees have a say in this decision however he or she still closely supervisors the employee.This style of management can be particularly useful when complex decisions need to be made that require a range of skill sets.
What are the four types of ownership for a business?
Closed corporation
Public and private companies
Sole traders
Partnership
