U3 AOS1

Question 1

Sole Trader Definition

Answer 1

A business owned and operated by one person.

Question 2

Partnership Definition

Answer 2

A business owned by a minimum of two and a maximum of 20 people.

Question 3

Incorporation Definition

Answer 3

The process that businesses go through to become a regstered company and a seperate legal entity.

Question 4

Limited Liability Definition

Answer 4

Shareholders cannot be held personally responsible for the debts of the business.

Question 5

Privated Limited Company Definition

Answer 5

An incorporated business with a maximum of 50 private shareholders and a minimum of 2, whose shares are offered only to those people whom the business wishes to have as part owners.

Question 6

Public Listed Company Definition

Answer 6

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

Question 7

Social Enterprise Definition

Answer 7

A business with the objective of fulfilling a social need.

Question 8

Goverment Business Enterprise Definition

Answer 8

A type of business that is goverment owned and operated.

Question 9

Business Objective Definition

Answer 9

A desired goal, outcome or specific result that a business intends to achieve.

Question 10

Business Strategies Definition

Answer 10

Actions that a business takes to achieve specific objectives.

Question 11

Efficiency Definition

Answer 11

How well a business uses resources to achieve objetives.

Question 12

Effectiveness Definition

Answer 12

The degree in which a business has achieved its stated objectives.

Question 13

Key Performance Indicator’s Definition

Answer 13

Specific criteria used to measure the efiiciency and effectiveness of the business’s performance.

Question 14

Stakeholders Definition

Answer 14

Groups and individuals who interact with the business and have a vested interest in its activities.

Question 15

Competitors Definition

Answer 15

Other businesses or individuals who offer rival, or competing goods or services to the ones offered by the business.

Question 16

Interest Groups Definition

Answer 16

Organisations who attempt to directly influence or persaude a business to adopt or change particular activites, rpocesses or policies.

Question 17

Trade Unions Definition

Answer 17

Represent employees, attempt to negotiate favourable pay and working conditions.

Question 18

Consumer Groups Definition

Answer 18

Monitor a business’s performance in terms of products safety, packaging, pricing and advertising.

Question 19

Specific Issues Groups Definition

Answer 19

Focus on youth unemployment, civil liberties, anti-globalisation or environmental protection.

Question 20

Corporate Social Responsibility Definition

Answer 20

Obligations a business has over and above its legal responsibilites to the wellbeing of employees and customers, shareholders and the community as well as the environment.

Question 21

Operations Definition

Answer 21

All the activities in which managers engage to produce goods or services.

Question 22

Finance Definition

Answer 22

Managing the financial aspects of the business, including financial policies, budgeting, accounting and reporting, and cash control.

Question 23

Human Resources Definition

Answer 23

Coordinating all the activities involved from acquiring to terminating employees of the business. It manages the relationship between the employer and employees.

Question 24

Sales and Marketing Definition

Answer 24

Responsible for the mar- keting mix, often referred to as the 7 Ps (product, price, place, promotion, people, physical evidence and pro- cess).

Question 25

Tech Suport Definition

Answer 25

Responsible for installing and maintaining technology, as well as providing assistance to the users of technology in the business.

Question 26

Communicating Skill Definition

Answer 26

Involves the ability to transfer information from a sender to a receiver, and to listen to feedback.

Question 27

Delegating Skill Definition

Answer 27

The ability to transfer authority and responsibility from a manager to an employee to carry out specific activities.

Question 28

Planning Skill Definition

Answer 28

The ability to define business objectives and decide on the methods or strategies to achieve them.

Question 29

Operational Planning Definition

Answer 29

Provides specific details about the way in which the business will operate in the short-term.

Question 30

Tacticle Planning Definition

Answer 30

Is flexible, adaptable, medium-term planning, usually over one to two years, which assists in implementing the strategic plan.

Question 31

Strategic Planning Definition

Answer 31

Long-term planning, the ‘big-picture’, usually over three to five years.
*Helps determine what the business wants to achieve in relation to its competitors.

Question 32

Leading Skill Definition

Answer 32

The ability to influence or motivate people to work towards the achievement of business objectives.

Question 33

Decision Making Skill Definition

Answer 33

The ability to identify the options available and then choose a specific course of action from the alternatives.

Question 34

Interpersonal Skill Definition

Answer 34

The ability to deal or liaise with people and build positive relationships with staff.

Question 35

Corporate Culture

Answer 35

The values, ideas, expectations and beliefs shared by members of the business