SAC 1

Question 1

Types of businesses

Answer 1

Large, medium, small and micro

Question 2

How many people do each type of business have

Answer 2

Large - More than 200
Medium - More than 20 less than 200
Small - More then 5 less than 20
Micro - Fewer than 5

Question 3

Types of stakeholders

Answer 3

Sole traders, partnerships, private limited companies, public companies, social enterprise, government business enterprise (GBE)

Question 4

Sole Trader

Answer 4

Single owner operating under own name

Question 5

Partnership

Answer 5

Expertise and resources of 2 to 20 people

Question 6

What are the different types of companies

Answer 6

Private and public

Question 7

Public Company

Answer 7

No restriction on number of shareholders

Listed with the Australian Securities Exchange (ASX)

Question 8

Private Companies

Answer 8

Minimum 2 shareholders, maximum 50

Shares can be traded only with the permission of the other shareholders

Question 9

Social Enterprise

Answer 9

Work to achieve social, cultural, community or environmental outcomes
Earn revenue

Question 10

Private Sector Stakeholders

Answer 10

Sole Trader, Partnership, Public Company, Private Company, Social Enterprise

Question 11

Public Sector Stakeholders

Answer 11

Government Department, Government Business Enterprises

Question 12

SMART Principal

Answer 12

Specific
Measurable
Attainable
Relevant
Time-brand

Question 13

Different types of statement

Answer 13

Vision, Mission, Values

Question 14

Areas of Management Responsibility

Answer 14

Human Resources
Finance
I.T.
Markets
Operations

Question 15

Corporate Social Responsibility

Answer 15

The consideration of the impacts of the business decisions on the wider community and the environment.

Question 16

Management Styles

Answer 16

Autocratic
Persuasive
Consultative
Participative
Laissez-Faire

Question 17

Autocratic

Answer 17

Task Focused
Management TELLS employees what decisions it has made
Power controlled by management
No flexibility
Work to be carried out without discussion

Question 18

Persuasive

Answer 18

Task Centered
Management SELLS decisions made to employees
Power centralised by management
No flexibility
Willing to emphasise with staff on occasions

Question 19

Consultative

Answer 19

Employee Centered
Management CONSULTS with staff before making decisions
Staff suggestions are welcomed and valued
When working in groups management is still to be included in some way

Question 20

Participative

Answer 20

Employee Centered
Management JOINS with staff to make decisions
Decentralization of power
Management is fully involved in the group decision making process

Question 21

Laissez-Faire

Answer 21

A form of democratic style at the extreme end of the scale
‘Democracy gone wild’
Useful in creative jobs but not useful in rapidly changing environments where decisions need to be made quickly

Question 22

Management Skills

Answer 22

Communication
Delegation
Planning
Leading
Decision Making
Interpersonal Skills

Question 23

Communication

Answer 23

3 Forms : Personal, Internal Organisational, External Operational
Methods: Reading, Written, Oral, Non-Verbal (Body Language)

Question 24

Delegation

Answer 24

Formal authority is passed down
Five Steps: Analysis, Appointment, Briefing, Control, Approval
All managers delegate, some will delegate tasks, others will delegate decision making

Question 25

Planning

Answer 25

The process of where a team department or whole organisation should be heading and how it intends to go 3 Levels: Operational - The day to day pratices of the organisation. These are detailed plans Tactical - Mid term planning, which will involve some implemention of the organisations objective Strategic - Top management is responsible for this level of planning

Question 26

Leading

Answer 26

Establish conditions that motivate, engage and inspire subordinates Be a good communicator Resolve conflicts

Question 27

Decision Making

Answer 27

High risk consequences High number of alternatives Uncertainty due to limited facts or unknown territory

Question 28

Interpersonal skills

Answer 28

Skills used by a manager when they have to deal with people on a personal level, such as lead, motivate, communicate, manage conflict and build team rampant Being a team player and working effectively with people in internal and external environments Must be both empathetic and assertive Able to motivate and encourage others

Question 29

Public Companies Advantages/Disadvantages

Answer 29

``` Advantages: - Easier to attract public finance - Limited liability - separate legal entity - Greater spread of risk Disadvantages: - Cost of formation - Double taxation - company and personal - Requirements to publish an annual report and audited accounts ```

Question 30

Social Enterprises Advantages/Disadvantages

Answer 30

Advantages: - Can open up new markets - Meeting a social need can have a positive effect on profit and market shares Disadvantages: - Difficulty in obtaining capital to start the business - Significant operating costs

Question 31

Government Business Enterprises Advantages/Disadvantages

Answer 31

Advantages: - A GBE can operate with some independence from government - Provision of healthy competition to businesses operating in the private sector Disadvantages: - Political interference in the day to day operation of the GBE - Management of GBE's can be less effective than that of the private sector

Question 32

Sole Trader Advantages/Disadvantages

Answer 32

``` Advantages: - Low cost of entry - Keeps all profits - Less costly to operate - Less government regulations Disadvantages: - Unlimited liability - Difficult to raise finance - Needs to perform all the tasks - Difficult to operate if sick ```

Question 33

Partnerships Advantages/Disadvantages

Answer 33

``` Advantages: - Low start up costs - Less costly to operate than a company - Minimal government regulation Disadvantage: - Unlimited liability - Possibility of disputes - Difficulty in finding a partner - Divided loyalty and authority ```

Question 34

Human Resources

Answer 34

Relates to managing overall relationship the business has with its employees

Question 35

Operations

Answer 35

Responsible for managing process of creating goods or services

Question 36

Finance

Answer 36

Responsible for planning and preparing internal info such as budgets. Financial decision making

Question 37

Marketing

Answer 37

Market research, advertising and branding. Creates relationship between business and customers

Question 38

Technology Support (I.T.)

Answer 38

Focus of assisting a business to create value by using technology, increase efficiency

Question 39

CSR

Answer 39

The consideration of impacts of business decisions on the wider community and the environment. Incorporates ethical practices