u3 aos1 Flashcards
sole trader
a sole trader is an individual entitled to keep all profits after tax has been paid but liable for losses
partnership
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)
private limited company
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
public listed company
an incorporated business with a minimum of 5 shareholders, and whose shares are freely traded on the Australian Securities Exchange
social enterprise
a type of business that aims to fulfil a community or environmental need by selling goods or services
government business enterprise
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)
objectives
statements of desired achievement that provide direction for the business, that they aim to achieve in a specified period of time
business objectives
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
efficiency
the best use of resources in the production of goods and/or services
effectiveness
the degree to which a process or system is successful in achievement of business objectives
shareholder
owner of a company
stakeholder
an individual or group that has a direct or vested interest in the activities of a business
autocratic management style
involves a manager making decisions and directing employees without any input from them
persuasive management style
managers make the decisions, then persuade workers of the benefits of those decisions
consultative management style
manager consults with employees when discussing an issue; however, the ultimate decision is made by the manager based on the suggestions and input received
participative management style
involves a manager sharing information with employees so that employees can participate in decision-making
laissez-faire management style
a leadership style that leaves the majority of decision-making and running of the business operation to the employees
skills
the ability to do something well, gained through training and experience
management skills: communication
a process of creating and exchanging information between people that produces the required response
mangement skills: delegation
passing of authority down the hierarchy to perform tasks or make decisions; responsibility remains with the person delegating
management skills: planning
a formalised decision-making process that is future orientated
management skills: leading
the skill of a manager when guiding workers towards achieving the goals of the business
management skills: decision-making
a multistep approach whereby a situation is made between a range of different alternatives
management skills: interpersonal skills
those skills used every day to communicate and interact with other people, both individually and in groups
