Teams And Forms Of Business Ownership Flashcards
What is a team?
WHAT IS A TEAM
Individuals who have complementary skills that work closely together toward a common objective or a specific task, and are accountable to one another.
●Together
●Each
●Accomplish
●Much
What are the differences between a team and a group?
State three
TEAM-Complementary
Group-Skills Regular Contact
Team-Committed To A Common Purpose Group-Similar Interest
Team-Mutually Accountable
Group-Frequent Interaction
What is a new venture team?
NEW VENTURE TEAM
A new venture team is a group of founders, key employees and advisors that move a new venture from the idea stage to a fully functioning firm.
FOUNDERS AND TEAMS
●Teams do not come together at once, they are built as the new firm can afford to hire new personnel.
●Working with a team could mean giving up some control; but it provides opportunity to involve others with more experience.
●Founders should be aware of their limitations and work hard to bring on board those who complement their skills.
Explain the team formation process
TEAM FORMATION PROCESS
Start at the idea stage before the start-up.
Do not necessarily build your team at once; add as needed.
True or false
1.Evaluate your talents ,experiences and personal characteristics then 2.you determine your values,goals and commitments then 3.you define the roles in the team
Values, goals, and commitment; teams should be well anchored in terms of values and goals and these should be in agreement.
Definition of roles; look for who is comfortable with who and who has what responsibility for, so that duplication of capabilities and responsibilities is minimized
Peer groups; the support and approval of family, friends and co-workers can be helpful especially when adversity strikes.
State five characteristics of teams
The size:ideal size of 7,range of 5-12 is adequate. Small teams show more commitment. Large teams tend to have
Size:
Ideal size is thought to be 7
Variations of from 5 to 12 typically are associated with good team performance
Small teams (2-4 members) show more agreement, ask more questions
Large teams (12 or more) tend to have more disagreements; subgroups are formed, conflicts occur among them often
Diversity
Produce more innovative solutions to problems
Source of creativity
Contribute to a healthy level of conflict that leads to decision making
Work team performance –racial, national, ethnic
Short term = difficulty learning to work together
Leadership helps problems fade over time
Explain the team development process
(For Stormie No Pans Aroused Her. Acronym for the team development process)
Forming-team acquaintances and establishing ground rules. Formalities are preserved and members are treated as strangers
Storming-members start to communicate their feelings but still view themselves as individuals rather than part of the team.they resist control by group leaders and show hostility
Norming-People feel part of the team and realize they can achieve work if they accept other people view points
Performing-The team works in an open and trusting atmosphere where flexibility is key and hierarchy is of little importance
Adjourning-The team conducts and assessment of the year and implements a plan for transitioning roles and recognizing members contributions
What is team cohesiveness and state the determinants of team cohesiveness
TEAM COHESIVENESS
Extent to which team members are attracted to the team and motivated to remain in it.
Determinants Of Team Cohesiveness
●Team interaction
●Shared goals
●Member similarity
●Group Size
●Degree of dependency
●Stage of the group
What are virtual teams
VIRTUAL TEAMS
Consist of geographically or organizationally dispersed members linked via technology- for example through Skype
What lessons can be learnt from the goose?(state three)
ACTIVITY 2:TEAM ROLES TEST
●Go to : https://www.123test.com/
●Click on team roles tests
●Each member in the group should go through the test
●The results of the test will show which role you can best play in a team
LESSONS FROM GOOSE: WHY THEY FLY IN “V” SHAPE
As each bird flaps its wings, it creates an uplift for the geese following.
By flying in a “V” formation, the whole flock adds much greater flying range than if each bird flew alone.
GOOSE SENSE: WHY THEY FLY IN V SHAPE
LESSON: People who share a common direction and sense of belongingness can get where they are going quicker and easier because the are traveling on the thrust of one another.
GOOSE SENSE: WHY THEY FLY IN V SHAPE
The geese in formation honk from behind to encourage those up front to keep up their speed.
LESSON: We need to make sure our honking is encouraging, and not something else.
(constructive criticisms)
GOOSE SENSE: WHY THEY FLY IN “V” SHAPE
When the lead goose gets tired, it rotates back into formation and another goose flies at the point position.
LESSON: It pays to take turns doing the hard tasks and share leadership
The decision on the ownership of the new firm hinges on several factors
Name four
Before a business is launched a form of business unit/legal entity must be chosen.
The decision on the ownership of the new firm hinges on several factors:
The cost of setting up and maintaining the legal form
The extent to which an entrepreneur can shield personal assets from the liabilities of the business
Tax considerations
The number and types of investors the entrepreneurs want to attract
What are the legal forms of business ownership? They are three
What is a limited liability company?
What is the number of people who can come together to form a partnership
Explain that students will have the chance to between a number of legal forms each of which comes with its pros and cons
Sole proprietorship is a business owned and managed by one individual; the business and the individual are one and the same in the eyes of the law.
The sole proprietor is the accountant ,the cleaner,the other roles to be played.
Partnership is an association of two or more people who co-own a business for the purpose of making a profit. A partnership agreement or deed is developed to regulate the activities of the partnership. A family business is a partnership .
Company-legal entity that exists independent of its owners. A person who registers a business as a company ,legally you are not the owner of that business anymore cuz others will have shares but maybe you’ll be the largest shareholder. Company decisions are taken by the board of directors not the largest shareholder
A limited liability company is a corporate structure whereby the members of the company cannot be held personally liable for the company’s debts or liabilities. Its owners are called shareholders.
What do you need to register for sole proprietorship
SOLE PROPRIETORSHIP
•Has a simple registration process.
• In order to register, the sole proprietor needs:
• an original identity card
•a taxpayer’s identification number(TIN number)
State five advantages and disadvantages of sole proprietorship
WHY SOLE PROPRIETORSHIP?
ADVANTAGES. DISADVANTAGES
Simple to create. Unlimited person liability
Least costly form. Limited skills and abilities
Profit incentive. Feelings of isolation
Total decision–making. Limited access to capital
No special legal restrictions. Lack of continuity of business
Advantage:Easy to discontinue
A firm cannot carry on business as partnership unless it is registered under which Act?
What things. Are needed for a partnership?
PARTNERSHIP
A firm cannot carry on business as partnership unless it is registered under Incorporated Private Partnerships Act, 1962 (Act 152)
•Name
•General nature of business
•Address
•The names and former names including residential address of partners
A partnership must have at least two owners and can have in most cases up to a maximum of 20 persons. Exceptions are accountants and solicitors.
The form for registering for partnerships is similar to that for the sole proprietorship, except that it makes provision for more than one owner.
State the three types of partners?
TYPES OF PARTNERS
•Active partner: contributes initial capital and in addition takes part in the day to day operations of the business.
•Sleeping or dormant partner: contributes capital and does not take part in the day to day management of the business
•General partner: takes full responsibility for the financial debts in the event of bankruptcy.
The entrepreneur will have to decide which type of partner he or she would want to be and bring on board.
By law, partnerships are supposed to have at least one general partner who behaves like the sole proprietor and takes on unlimited liability. The other can choose unlimited liability making the partnership exhibit features of both sole proprietorship and limited liability companies.
