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Question 1

sole trader

Answer 1

a sole trader is an individual entitled to keep all profits after tax has been paid but liable for losses

Question 2

partnership

Answer 2

a legal form of business owned and operated by two or more people (up to 20), each partner is jointly liable for business debts incurred (unlimited liability)

Question 3

private limited company

Answer 3

an incorporated private business with a minimum of 1 and a maximum of 50 private shareholders, and whose shares are offered only to those people whom the business wishes to have as part owners

Question 4

public listed company

Answer 4

an incorporated business with a minimum of 5 shareholders, and whose shares are freely traded on the Australian Securities Exchange

Question 5

social enterprise

Answer 5

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

Question 6

government business enterprise

Answer 6

a type of business that is government owned and operated, GBE’s aim to increase the value of their assets and returns to their shareholder (the government)

Question 7

objectives

Answer 7

statements of desired achievement that provide direction for the business, that they aim to achieve in a specified period of time

Question 8

business objectives

Answer 8

to make a profit, to increase market share, to improve efficiency, to improve effectiveness, to fulfil a market need, to fulfil a social need, to meet shareholder expectations

Question 9

efficiency

Answer 9

the best use of resources in the production of goods and/or services

Question 10

effectiveness

Answer 10

the degree to which a process or system is successful in achievement of business objectives

Question 11

shareholder

Answer 11

owner of a company

Question 12

stakeholder

Answer 12

an individual or group that has a direct or vested interest in the activities of a business

Question 13

autocratic management style

Answer 13

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

Question 14

persuasive management style

Answer 14

managers make the decisions, then persuade workers of the benefits of those decisions

Question 15

consultative management style

Answer 15

manager consults with employees when discussing an issue; however, the ultimate decision is made by the manager based on the suggestions and input received

Question 16

participative management style

Answer 16

involves a manager sharing information with employees so that employees can participate in decision-making

Question 17

laissez-faire management style

Answer 17

a leadership style that leaves the majority of decision-making and running of the business operation to the employees

Question 18

skills

Answer 18

the ability to do something well, gained through training and experience

Question 19

management skills: communication

Answer 19

a process of creating and exchanging information between people that produces the required response

Question 20

mangement skills: delegation

Answer 20

passing of authority down the hierarchy to perform tasks or make decisions; responsibility remains with the person delegating

Question 21

management skills: planning

Answer 21

a formalised decision-making process that is future orientated

Question 22

management skills: leading

Answer 22

the skill of a manager when guiding workers towards achieving the goals of the business

Question 23

management skills: decision-making

Answer 23

a multistep approach whereby a situation is made between a range of different alternatives

Question 24

management skills: interpersonal skills

Answer 24

those skills used every day to communicate and interact with other people, both individually and in groups

Question 25

market share

Answer 25

proportion or percentage of the market controlled by the business

Question 26

corporate culture

Answer 26

the shared values, beliefs, and practices of people within a business

Question 27

official corporate culture

Answer 27

desired culture that a business wishes to establish

Question 28

real corporate culture

Answer 28

actual or prevailing culture that exists within a business