theme 1 Flashcards
what are the features of a sole trader
unlimited liability
owner keeps all profit
owner keeps control
what are the features of a partnership
unlimited liability
deed of partnership
greater shared risk
what are the features of a private limited company
process of incorporation time consuming
limited liability
wider access to capital
what are the features of a public limited company
raise capital by selling shares to the public
ability to take over other businesses
lose control of other businesses
what does SMART stand for?
Specific
Measurable
Achievable
Realistic
Time bound
what is the difference between an aim and objective
aim - long term
objective - short term
what kind of skills will an entrepreneur need
organisation - lots to coordinate
financial management - cash flow management
managing and communicating with people
what kind of characteristics will an entrepreneur need
self confidence
self determination
commitment
what financial motives may an entrepreneur have
profit maximisation - as much as possible
profit satisfying - generate enough to live
what are non financial motives of entrepreneurs
independence and home working
ethical stance - climate change
benefits of intrapraneurial staff
solve problems
create exciting new products
what are opportunity costs
the loss of other alternatives when one option is chosen
what leader ship styles are there
paternalistic
democratic
laissez faire
autocratic
what are the benefits and negatives of autocratic leadership
(+)high level of control over unskilled workforce
(-)low levels of motivation if employees feel not respected or valued
what are the benefits and negatives of the democratic leadership style
(+)develops a team spirit
(-)decision making can take a long team time
what are the benefits and negatives of the laissez faire leadership style
(+)allows employees autonomy raising motivation
(-)lack of control over workforce may miss deadlines
what are the benefits and negatives of the paternalistic leadership style
(+)employees feel they are being looked after
(-)employees given no power to make decisions
how do businesses treat employees as an asset
reasonable holiday and sick pay
invest in training
how can businesses treat their staff as costs
pay workers the minimum
zero hour contracts
why is a flexible workforce important
adapt employees to changing demands of business environment
what are the methods used to have a flexible workforce
multi skilling employees
outsourcing
part time and temporary contracts
what is recruitment and selection
the process of attracting , identifying and selecting the best workers
what is a person specification
details of characteristics , qualifications and experience of desired employee
what is a job description
states title of job and outlines task, duties and responsibilities
