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Business 3&4 > Specific SAC cue cards AOS1 > Flashcards

Specific SAC cue cards AOS1 Flashcards

1
Q

sole trader definition

A

A business structure that is owned and operated by one individual

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2
Q

what are 4 ways to identify a sole trader?

A
  • unlimited liability
  • owner retains all profits after personal income tax is paid
  • simple and cost effective
  • single individual makes all decisions
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3
Q

partnership definition

A

A business that is owned by 2 to 20 people

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4
Q

what are 4 ways to identify a partnership?

A
  • 2-20 owners
  • simple and cost effective structure
  • profits shared between owners
  • unlimited liability
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5
Q

Private limited company definition

A

An incorporated business structure that has at least one director and a maximum of 50 shareholders

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6
Q

what are 4 ways to identify a private limited company?

A
  • pty ltd after business name
  • only up to 50 shareholders
  • limited liability of the shareholders
  • shares can only be sold privately
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7
Q

public listed company definition

A

An incorporated business that has an unlimited number of shareholders and lists and sells its shares on the ASX

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8
Q

what are 6 ways to identify a public listed company?

A
  • ltd after business name (limited liability)
  • shares sold publicly
  • unlimited shareholders
  • limited liability of shareholders
  • stricter regulations due to public listing
  • have to display financial info publicly
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9
Q

social enterprise definition

A

Type of business that aims to fulfil a community or environmental need by selling goods or services

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10
Q

what are 2 ways to identify a social enterprise?

A
  • mission, focus is on social or environmental cause
  • profits are reinvested in the business or donated to charities
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11
Q

Government Business Enterprise definition

A

A business that is owned and operated by the government

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12
Q

what are 3 ways to identify a GBE?

A
  • owned by the government but managed separately
  • exists to provide a public service
  • accountable to the government and the public
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13
Q

what are business objectives?

A

the goals a business intends to achieve

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14
Q

what are the 7 main business objectives?

A
  • to make a profit
  • to increase market share
  • to meet shareholders expectations
  • to fulfil a market need
  • to fulfil a social need
  • to improve efficiency
  • to improve effectiveness
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15
Q

what is making a profit?

A

make more revenue than business expenses

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16
Q

what is increasing market share?

A

to increase the total sales within an industry, and it reflects a businesses competitiveness

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17
Q

what is to meet shareholder expectations?

A

providing a financial return on their investment in the company, which is in the form of dividends or capital gains.

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18
Q

what are dividends?

A

regular sums of money paid out to shareholders from a business’s profit.

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19
Q

what is to fulfil a market need?

A

When a business addresses customer needs that are currently unmet or underrepresented by other businesses in the same industry

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20
Q

what is to fulfil a social need?

A

improving society and the environment through business activities.

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21
Q

what is improving efficiency?

A

How well a business uses its resources when producing a good or service.

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22
Q

what is improving effectiveness?

A

Effectiveness is the extent to which a business achieves its stated objective

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23
Q

what is the difference between effectiveness and effciency?

A

effciency is ensuring that the materials are not going to waste, whereas effectiveness is to what extent the business is completing their objectives.

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24
Q

what are stakeholders?

A

Stakeholders are individuals, groups, or organisations who have a vested interest in the performance and activities of a business.

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25
Q

what are 3 internal stakeholders?

A
  • owners
  • employees
  • shareholders
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26
Q

what are 3 external stakeholders?

A
  • customers
  • competitors
  • general community
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27
Q

owners definition

A

individuals who establish, invest, and have a share in a business, often with the goal of earning a profit

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28
Q

employees definition

A

individuals who are hired by a business to complete work tasks and support the achievement of its objectives

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29
Q

shareholders definition

A

Individuals who have purchased shares in a company and are therefore part owners of that company

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30
Q

customers definition

A

Individuals or groups who interact with a business by purchasing and utilising its goods and services

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31
Q

competitors definition

A

a business rival in the same market offering the same/similar product or service of a business

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32
Q

general community definition

A

individuals and groups who are impacted by a business’s operation and decisions often because they are located in close proximity to the business

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33
Q

what are 2 interests of owners

A
  • having positive relationships with other stakeholders to enhance business reputation and performance
  • receiving a return on their investment through business growth in the form of increases in its share price, dividends or profits
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34
Q

what are 3 interests of employees

A
  • to receive a fair wage or salary
  • to receive sufficient training
  • To gain job satisfaction
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35
Q

what are 3 interests of shareholders

A
  • profitability of the business
  • increasing the value of their investment through capital gains and dividends (portion of the profits made)
  • ethical business operations
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36
Q

what are 3 interests of customers

A
  • to receive high-quality goods and services at affordable prices
  • to receive high levels of customer service
  • to potentially establish a long-term relationship with the business
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37
Q

what are 3 interests of competitors

A
  • to gain a competitive edge over another business
  • to gain a larger market share
  • to differentiate the products or services from their competitors
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38
Q

what are 3 interests of the general community

A
  • to ensure the business operations are environmentally responsible and sustainable
  • to increase the local employment rate and boost the local economy
  • to observe business activities that lead to improvements in the community and environment
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39
Q

what are management styles

A

the approach and manner in which employees are directed and motivated within a business.

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40
Q

what are the 5 management styles

A

autocratic, persuasive, consultative, participative, laissez-faire

41
Q

what are 3 things to look for when identifying a management style?

A
  • communication
  • decision-making
  • employee involvement
42
Q

what does the autocratic management style involve

A

a manager making decisions and directing employees without any input from them

43
Q

what types of control and communication is used in a autocratic management style

A

centralised control, and one-way top down communication

44
Q

what does the persuasive management style involve

A

a manager making decisions and communicating the reasons for those decisions to employees without their input (trying to convince the employees)

45
Q

what types of control and communication is used in a persuasive management style

A

centralised control, and one-way communication

46
Q

what does the consultative management style involve

A

a manager seeking input from employees on business decisions but making the final decision themselves

47
Q

what types of control and communication is used in a consultative management style

A

centralised control, two-way communication

48
Q

what does the participative management style involve

A

a manager sharing information with employees so that employees can participate in decision-making (making decisions jointly)

49
Q

what types of control and communication is used in a participative management style

A

decentralised control, two-way communication

50
Q

what does the laissez-faire management style involve

A

a manager communicating business objectives to employees and giving them freedom to make decisions independently

51
Q

what types of control and communication is used in a laissez-faire management style

A

decentralised control, two-way communication

52
Q

what are 2 advantages of an autocratic management style

A
  • Directions and procedures are clearly defined; there is little uncertainty
  • Employees’ roles and expectations are clear
53
Q

what are 3 disadvantages of an autocratic management style

A
  • No employee input; fewer ideas; employees less able to develop; employees don’t feel valued
  • No responsibility for lower-level staff, resulting in lower job satisfaction & low motivation
  • Increased potential for conflict
54
Q

what are 3 advantages of an persuasive management style

A
  • Decisions can be made quickly as there is no consultation
  • Managers gain some trust/support by explaining reasons for their decisions
  • More positive response, as employees receive more information
55
Q

what are 3 disadvantages of an persuasive management style

A
  • Attitude and trust remain negative as there is no employee participation
  • Employees remain frustrated because they are denied any participation in the decision-making process
  • Time may be wasted at meetings that justify decisions, but don’t seek employee input
56
Q

what are 3 advantages of an consultative management style

A
  • there is greater variety of ideas, which can help make a better decision
  • Employees have some ownership in the way in which the business is run and take more interest in it
  • Employees are more involved in the business so can feel a sense of fulfilment which can improve morale
57
Q

what are 3 advantages of an participative management style

A
  • Positive relations between management and employees = a lower likelihood of disputes
  • The two-way communication process = greater flow of ideas
  • High motivation and job satisfaction
58
Q

what are 3 disadvantages of an consultative management style

A
  • it takes time to consult with employees prior to making decisions
  • Some issues don’t suit a consultation process
  • if the process is not consistent, staff will be uncertain of their roles
59
Q

what are 3 disadvantages of an participative management style

A
  • More time consuming, as more views must be considered
  • Compromises made rather than clear, decisive decisions
  • Not all employees may wish or be equipped to contribute
60
Q

what are 3 advantages of an laissez-faire management style

A
  • Helps employees feel a sense of ownership towards the project they are working on
  • Encourages creativity, which is conducive to a dynamic working environment
  • Communication is open and ideas are shared
61
Q

what are 3 disadvantages of an laissez-faire management style

A
  • Resources, including time and money may be misused or used ineffectively, due to the loss of management control
  • May lead to creative differences and thus internal conflict
  • Focus on business objectives can be easily lost
62
Q

what are the 4 factors when deciding a management style that needs to be considered

A

time, employee experience, nature of the task and manager preference

63
Q

what management styles are suitable when there is limited amount of time and why

A

autocratic or persuasive as the manager can make decision quickly and do not need to discuss with employees

64
Q

what management styles are suitable when there is a lot of time available and why

A

consultative, participative, or laissez-faire as there can be lots of discussion about the best option (two-way discussions)

65
Q

what management styles are suitable when they have inexperienced employees and why

A

autocratic or persuasive, as they will be unlikely be able to help

66
Q

what management styles are suitable when they have experienced employees and why

A

consultative, participative, or laissez-faire as they can give there experienced opinion and ideas (two-way communication)

67
Q

what management styles are suitable when the tasks are simple and why

A

autocratic or persuasive, the discussion of ideas may not be needed so the manager can figure it out themselves

68
Q

what management styles are suitable when the tasks are complex and why

A

consultative, participative, or laissez-faire

they allow for two-way conversations and managers and employees can make more innovative and well-informed decisions by sharing ideas and suggestions

69
Q

what management styles are suitable when the manager likes to have control and why

A

autocratic or persuasive, has centralised decision-making and one-way communication

70
Q

what management styles are suitable when the manager likes to have shared control and why

A

consultative, participative, or laissez-faire, allows for two-way conversations and employee involvement in the decision-making processes

71
Q

what are management skills

A

the abilities or competencies that managers use to complete tasks for business objectives

72
Q

what are the 6 main management skills?

A
  • planning
  • decision-making
  • communication
  • delegation
  • interpersonal skills
  • leadership
73
Q

planning definition

A

The process of determining a business’s objectives and establishing strategies to achieve these aims.

74
Q

what are 2 examples of how planning can be used?

A
  • identify training needed
  • plan product launches
75
Q

decision making definition

A

The skill of selecting a suitable course of action from a range of plausible options

76
Q

what are 3 examples of how decision making can be used

A
  • To set long-term objectives
  • To guide the development of new products or services,
  • To allocate resources effectively
77
Q

communication definition

A

Communication is the skill of effectively transferring information between parties.

78
Q

what are 3 examples of how communication can be used

A
  • To clarify tasks
  • To resolve conflict
  • To maintain good working relationships
79
Q

delegation definition

A

Delegation is the skill of assigning tasks and authority to lower-level employees in the business hierarchy.

80
Q

what are 2 examples of delegation being used

A
  • To ensure efficient task distribution and meet tight deadlines
  • To provide growth opportunities for employees
81
Q

interpersonal definition

A

the skill of creating positive interactions with other employees

to foster beneficial professional relationships

82
Q

what are 3 examples of interpersonal being used

A
  • Active listening
  • Empathy towards employees
  • Collaboration (Actively participating in group discussion)
83
Q

leadership definition

A

the skill of motivating others in order to achieve a business’s objectives

84
Q

what are 3 examples of leadership being used

A
  • To set a vision
  • To lead by example
  • To build team culture
85
Q

what management skills are used frequently or sometimes in the autocratic style? (2,1)

A
  • planning, decision-making
  • communication
86
Q

what management skills are used frequently or sometimes in the persuasive style? (2,3)

A
  • planning, decision-making
  • communication, delegation, interpersonal
87
Q

what management skills are used frequently or sometimes in the consultative style? (3,3)

A
  • planning, decision-making, communication
  • delegation, interpersonal, leadership
88
Q

what management skills are used frequently or sometimes in the participative style? (3,2)

A
  • communication, interpersonal, leadership
  • decision-making and delegation
89
Q

what management skills are used frequently or sometimes in the laissez-faire style? (3,1)

A
  • delegation, communication, leadership
  • interpersonal
90
Q

what is corporate culture (CC)

A

the shared values and beliefs of a business and its employees.

91
Q

what does official corporate culture involve

A

the shared views and values that a business aims to achieve

92
Q

what does real corporate culture involve

A

the shared values and beliefs that develop naturally within a business, and are practised on a daily basis by its employees.

93
Q

what are 3 indicators of official corporate culture

A
  • logos
  • slogans
  • written policies
94
Q

what are 3 indicators of real corporate culture

A
  • language used
  • dress
  • behaviours of employees
95
Q

what are 3 benefits of positive culture

A
  • Increased productivity
  • Increased work ethic
  • Greater profitability
96
Q

what are 3 costs of negative culture

A
  • Decreased productivity
  • Decreased work ethic
  • Decreased profitability
97
Q

what is unlimited liability

A

the personal legal responsibility a business owner has for an unincorporated business’s debts

98
Q

what is limited liability

A

when shareholders are only liable to the extent of their original investment

meaning they are not personally responsible for the business debts

Business 3&4 (7 decks)

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