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U3 AOS 1 Flashcards

1
Q

sole trader strengths

A

owner has full control/power, low risk of disputes, least expensive to set up, owner can retain all profits

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1
Q

sole traders weaknesses

A

unlimited liability, knowledge/skills are limited to personal savings, minimal work-life balance, and difficulty to raise money from personal savings.

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2
Q

partnership pros

A

greater range of expertise/ideas, financial/legal risks are shared, the workload is shared (balance), greater access to money, minimal startup costs.

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3
Q

partnership cons

A

unlimited liability (assets risk), conflicts may arise (decision making), profits are shared, all partners hold liability for debts incurred by other partners.

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4
Q

private limited pros

A

limited liability, greater variety of ideas/expertise, existence isn’t threatened by the removal of a director, greater access to capital (more loans)

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5
Q

private limited cons

A

complex reporting requirements (ie. annual reports)to be pulished to shareholders

difficult to change structure once established

It is expensive to set up and operate as there are higher set-up and ongoing administration costs.

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6
Q

public listed pros

A

shareholders have limited liability, greater access to expertise/ideas, no permission to sell/trade shares, company lives longer than directions, greater access to capital as anyone can purchase shares.

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7
Q

public listed cons

A

conflicts-decisions-directors -shareholders

complex requirements (ie. annual financial reports) published online,

business is expensive to set up- set up business structure -complex, time

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8
Q

social enterprise pros

A

community benefits

positive reputation-contributing- society,

employees- purposeful work- satisfied jobs,

more likely to receive financial support.

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9
Q

social enterprise cons

A

difficult to balance financial objectives with social objectives, difficult to obtain a bank loan as it doesn’t have a sole focus on financial objectives.

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10
Q

government business enterprise

A

a business that is owned by the government but aims to act under general business principles and make a profit

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11
Q

GBE pros

A

delivers goods and services - help the community
healthy competition to the private sector, operate with independence from gov, provides services -private sector would hesitate to invest in,
rely on gov for initial investment.

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12
Q

GBE cons

A

gov can interfere with/change the strategic direction of the business,

red tape (excessive rules and formalities) speed of achieving tasks - SLOW

productivity- LOW - lack of accountability in the public sector.

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13
Q

unlimited liability

A

personal legal responsibility a business owner has for unincorporated business debts.

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14
Q

unincorporated

A

the business and the owner are the same legal entity

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15
Q

partnership agreement

A

roles/expectations of partners in a business

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16
Q

incorporated

A

the legal status of a company is a separate entity to the owner/s

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17
Q

limited liability

A

shareholders are only liable to the extent of the business

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18
Q

business objectives

A

the goals a business intends to achieve. it provides businesses with direction and can implement strategies to achieve these objectives.

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19
Q

to make a profit

A

to make more revenue than expenses. seek to reduce costs and increase revenue and distributed to owners

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20
Q

to increase market share

A

Refers to growing a business proportion of total industry sales over a given time. (tech, customer loyalty, quality g/s, advertising, lowered prices = sales).

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21
Q

improved effectiveness

A

the extent - business achieves its stated objectives -strategies in place to achieve - measurement tools should be used to assess.

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22
Q

fulfil market needs

A

fills a gap -addressing customer needs - unmet/underrepresented - industry. market research find out needs of customers

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23
Q

fulfil social needs

A

business focuses on community - improve the lives of others

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24
to meet shareholder expectations
they expect to make a ROI through capital gains (value of business) or dividends (their share of profit)
25
to improve efficiency
refers to how well a business uses resources (time, raw materials, labour, machinery, tech etc) in producing a good/service and to achieve objectives. little resources as possible (less $$), evaluate operations - improvements without additional costs, work within constraints of fiances and budgets.
26
employees
people that work for the business in exchange for money.
27
shareholders
part owners of a business who have invested money
28
management
individuals who oversee and coordinate a businesses employees and lead its operations to achieve objectives.
29
customers
individuals who interact with a business by purchasing and utilising its goods/services
30
suppliers
those that provide materials/resources to the business to assist them with their operations and the construction of their final product/service.
31
owners
individuals who establish, invest and have a share in the business
32
sole trader
A sole trader is an individual who owns the business, and is the sole person legally responsible for all aspects of the business.
33
partnership
A partnership is a business structure that involves 2 to 20 individuals who own a business together
34
private limited company PTYLTD
An incorporated business that is owned by shareholders and not listed on the stock exchange.
35
Public listed company - LTD
An incorporated business that is owned by shareholders, run by directors and listed on the stock exchange.
36
social enterprise
a profit-making business with social objectives, whose surpluses are reinvested towards that social objective.
37
GBE
a business that is owned by the government, but aims to act under general business principles and make a profit.
38
autocratic
leader dictates what the objectives are and how they should be achieved.
39
autocratic characteristics
management makes decisions without employee input, one-way communication, and clear communication.
40
autocratic pros
quick decisions, clear direction given to employees
41
autocratic cons
low staff morale (ideas not heard), employee development is lacking, poor relationship between staff and management, a smaller pool of ideas.
42
autocratic appropriateness
nature of the task: simple time is lacking when employee experience and knowledge are lacking when the manager prefers to be in control.
43
persuasive
A management style where a leader dictates what the objectives are and persuades employees as to how they should be achieved.
44
persuasive characteristic
centralised decision making and one-way communication but more info is given to employees.
45
persuasive pros
time - efficiently - no discussion/consultation maintain employee morale better than an autocratic style- more information provided and the benefits are sold.
46
persuasive cons
no employee input could lead to less considered/informed decisions and employees may not feel empowered (low staff morale), a smaller pool of ideas.
47
persuasive appropriateness
nature is simple time is lacking, employee experience/knowledge is lacking manager prefers to be in control and backs their selling ability.
48
consultative
a management style where the leader asks employees for their opinions before making a decision.
49
consultative characteristics
centralised decision making (manager makes decisions), two-way communication, discussions encouraged.
50
consultative pros
greater variety of ideas - better decision made, higher staff morale - opinions sought, employees often take more interest, improves confidence in employees.
51
consultative cons
time-consuming, low staff morale and conflict - employee input can be overlooked, and employees may not have the experience/knowledge to contribute.
52
consultative appropriateness
when the nature of the task is complex, when there is adequate time available, the employees are experienced and have knowledge, and when the manager likes to seek input but still wants to make final decisions.
53
participative
a management style where the leader shares decision-making responsibility with their team
54
participative characteristics
employees can make decisions (decentralised), two-way communication, discussions encouraged, and information shared among employees.
55
participative pros
greater variety of ideas - a better decision made, higher staff morale, employees more receptive to change, strong relationships between managers and employees, employees develop skills and experience.
56
paricipative cons
time-consuming, manager role may be undermined, possible misuse of resources, conflicts may arise, time spent on forming decisions rather than on completing actual work.
57
participative appropriateness
nature of the task is complex and during times of change and when creativity is required, adequate time available, employees have experience and knowledge, when the manager likes to make decisions with employees.
58
laissez-faire
a management style where employees are responsible for the decision-making and operation of the business.
59
LF characteristics
employees empowered to make decisions (decentralised), managers only involved if asked or to certain parameters (eg. budget deadlines).
60
LF pros
high staff morale - have ownership, encourages creativity, high level of motivation, often encourages teamwork.
61
LF cons
loss of control, can cause conflict, possible misuse of resources, employees can be insulated (communication with management is not happening as frequently)
62
LF appropriateness
when the nature of the task is highly creative, there is lots of time available, the employees are highly skilled and have experience/knowledge and a manager likes to place high level of trust in the right employees.
63
management skills
abiltiies or competencies that managers use to help them complete tasks necessary for the achievement of business objectives
64
communication
the transfer of information from a sender to a reciver
65
communication pros
helps maintain relationships
66
communication cons
leads to conflict, time-consuming, reduces productivity
67
delegation
authority/responsibility to carry out specific tasks that is transferred from a manager to an employee
68
delegation effectiveness
M- managaes time I - improvement in motivation L - learning new skills F - fresh ideas
69
delegations not suitable
strategic plans, high risk decisions, confidencial matters, highly specialised areas that need training
70
Process of delegation
A ABC's Appraisal 1. Analysis, appointment, briefing, control, appraisal
71
planning
the ability to define objectives and determine methods/strategies that will be used to achieve objectives
72
levels of planning
1. stategic 2. tactial 3. operational
73
aims of planning
to find a purpose/direction, reduce uncertainty, efficent resources used, clear objectives create unity and improve motivation
74
SOS AIM (steps/process of planning)
set, objective, swot anaylsis, alternatives, implemnt, monitor
75
leading
managers try to influence/motivate people in busines to work to achieve business objectives
76
transactional leaders
give rewards in return for compliance/acceptance of authority
77
transformative leaders
inspires/enthuses staff with a vision to ensure they're committed to achieving business objectives
78
leading pros
motivate employees, improve morale, create a sense of direction, create trust within management, staff work harder, higher productivity
79
leadership cons
Managers spend too much time leading and not on productive work, clashes with managers and staff.
80
decision making pros
teams = more ideas, precise process
81
decision makings cons
slow to implement if process is not followed, is not followed, the higher chance of failure
82
interpersonal skills
managements ability to deal/liaise with people and build positive relationships with staff
83
interpersonal skills effectiveness
Need HR to achieve business objectives Inspire and influence staff Overcome conflict Higher motivation and staff morale Opposite - creates threatening work environment, fear and intimidation
84
interpersonal skills cons
misuse their interpersonal skills and manipulate other people, may make emotional decisions instead of factual.
85
general community
The people living in one particular area or people who are considered as a unit because of their common interests, social groups or nationality
86
communication
the transfer of information from a sender to a receiver
87
delegation
authority and responsibility to carry out specific tasks is transferred from a manager to an employee
88
delegation effectiveness
manage time, fresh ideas, improvement in employee motivation, and learning new skills.
89
delegation process (A ABC Apprisal)
A ABC APPRAISAL analyse, appointemnt, briefing, control, appraisal
90
planning
the ability to define objectives and determine strategies that will be used to achieve the objectives
91
aims of planning (CREG)
Clear objectives create unity and improve motivation Reduce uncertainty Efficient resources used Give the business purpose and direction
92
SOS AIM
set objective, swot analysis, alternatives implement, monitor
93
leading
managers try to influence or motivate people in business to work to achieve business objectives
94
Transactional VS transformational
Transactional - expect something in return Transformational - inspires with a vision
95
leading pros
motivate employees and improve staff morale, sense of direction, trust management, tend to work harder, higher productivity
96
leading cons
Disadvantages: managers spend too much time leading and not on productive work (eg. not attending meetings) and clashes between management and employees.
97
decision making
identifying available options and then choosing one course from the alternatives
98
decision making aim
to make decisions within a time frame and assess risks involved in the implementation of the decisions.
99
DOIAC process (decision making process)
develop - goals/criteria outline - facts identify - alternatives analyse - alternatives choose - implement
100
interpersonal skills
managements ability to deal/liaise with people and build positive relationships with staff
101
Autocratic and persusive rely on
Planning, centralised decisionmaking, one way communication, delegation
102
consultative and participative rely on
planning, decision making, interpseronal skills, leading, delegation
103
corporate culture
the shared values, beliefs and practices of a business
104
official corporate culture
revealed officially in policies, objectives or slogans
105
real corporate culture
unwritten/informal rules that guide managers/employees behaviours and treatment of all stakeholders (eg. staff dress code, language used)
106
4 elements of corporate culture
1. values/practices 2. symbols 3. rituals, rites and celebrations 4. heroes
107
management styles define
the way a manager does things - behaviour/attitude of a manager when making decisions, directing and motivating.
108
management skills define
the abiltiies/competitancies that a manager usese to complete tasks effectively these can be gained through training or experience.
109
CSR
is the ethical conduct of a business beyond legal obligations, and the consideration of social, economic, and environmental impacts when making business decisions.

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