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Question 1

small business

Answer 1

a business that employs fewer than 20 people

Question 2

micro business

Answer 2

fewer than 5 people including the owner

Question 3

medium business

Answer 3

employs 20 or more people, but fewer than 200 people

Question 4

large business

Answer 4

employs 200 or more people

Question 5

sole trader

Answer 5

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

Question 6

partnership

Answer 6

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 7

private limited company

Answer 7

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 8

public listed company

Answer 8

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

Question 9

social enterprise

Answer 9

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

Question 10

government business enterprise

Answer 10

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 11

objectives

Answer 11

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

Question 12

business objectives

Answer 12

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 13

efficiency

Answer 13

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

Question 14

effectiveness

Answer 14

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

Question 15

shareholder

Answer 15

owner of a company

Question 16

stakeholder

Answer 16

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

Question 17

macro environment

Answer 17

broad operating conditions in which a business operates and over which it has no control

Question 18

operating environment

Answer 18

the environment immediately external to a business with which it has close interaction when conducting business activities

Question 19

internal environment

Answer 19

activities, functions, and pressures that occur within a business over which it has control

Question 20

autocratic management style

Answer 20

management style where all decision-making is centralised, there is little delegated authority and communication is one-way - downwards

Question 21

persuasive management style

Answer 21

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

Question 22

consultative management style

Answer 22

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 23

participative management style

Answer 23

decision-making is performed as a team with management and staff working together, with the manager retaining responsibility and accountability

Question 24

laissez-faire management style

Answer 24

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

Question 25

skills

Answer 25

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

Question 26

management skills: communication

Answer 26

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

Question 27

mangement skills: delegation

Answer 27

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

Question 28

management skills: planning

Answer 28

a formalised decision-making process that is future orientated

Question 29

SWOT analysis

Answer 29

an assessment of the internal strengths and weaknesses and the external opportunities and threats for a business in a given situation

Question 30

strategic planning

Answer 30

long-term (2-5 years) planning undertaken by senior management to achieve business objectives

Question 31

tactical planning

Answer 31

the planning undertaken by middle-level management to assist in implementing strategic decisions; medium term (1-2 years)

Question 32

operational planning

Answer 32

the detailed, short-term planning undertaken by a business

Question 33

management skills: leading

Answer 33

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

Question 34

management skills: decision-making

Answer 34

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

Question 35

management skills: interpersonal skills

Answer 35

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

Question 36

market share

Answer 36

proportion or percentage of the market controlled by the business

Question 37

corporate culture

Answer 37

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

Question 38

official corporate culture

Answer 38

desired culture that a business wishes to establish

Question 39

real corporate culture

Answer 39

actual or prevailing culture that exists within a business

Question 40

senior/executive management

Answer 40

the people involved in the strategic planning and decision-making of the business

Question 41

middle-level managers

Answer 41

the people who translate corporate objectives into special projects, monitor progress of projects and supervise front-line managers

Question 42

front-line managers

Answer 42

lowest level of managers, responsible for the work of operating employees only, and do not supervise other managers