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Business Management Unit 3/4 > U3: AOS1: Business Foundations > Flashcards

U3: AOS1: Business Foundations Flashcards

1
Q

Sole Trader

A

One owner, unlimited liability, retains all profits

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2
Q

Liability

A

Any loss or debts of the business

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3
Q

Advantages of a sole trader

A

Low cost, simple, complete control, no partner disputes

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4
Q

Disadvantages of a sole trader

A

Unlimited liability, burden of management, difficult to operate when sick, need to perform variety of tasks

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5
Q

Partnership

A

2-20 owners. All partners equally responsible for liability.

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6
Q

Advantages of a Partnership

A

Low startup cost, shared responsibilities, pooled funds

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7
Q

Disadvantages of a Partnership

A

Personal Unlimited liability for all debts, possibility of disputes

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8
Q

Private Limited Company

A

Has at least one shareholder, and a maximum of 50 non-employee shareholders.

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9
Q

Advantages of private limited company

A

Limited liability, easier to attract finance, easy transfer of ownership, perpetual succession, company tax rate lower

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10
Q

Disadvantages of private limited company

A

Cost of formation, company is taxed, public disclosure, inefficiences

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11
Q

Public Listed Company

A

Incorporated business with a minimum of five shareholders, and shares are trader on the ASX

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12
Q

Advantages of a public listed company

A

Can attract extra capital by issuing shares on the ASX, Easy transfer of ownership

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13
Q

Disadvantages of a public listed company

A

Highly complex business structure, significant establishment costs, requires accountability and compliance

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14
Q

Social Enterprise

A

Has the objective of fulfilling a social need and invests profit into a social need or back into the business

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15
Q

Advantages of a social enterprise

A

Can meet a demand that commercial businesses may not, meeting a social need may have a positive effect on market share

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16
Q

Disadvantages of a social enterprise

A

Difficulty in obtaining capital for startup, can be difficult to focus on business objectives and social objectives

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17
Q

Government Business Enterprise

A

Government owned and operated

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18
Q

Advantages of a government business enterprise

A

Can carry out business in areas that private companies would be hesitant to invest in, can give healthy competition to other businesses, can operate with some independence from the government

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19
Q

Disadvantages of a government business enterprise

A

Political interference in the day-to-day operation, inefficiencies, less accountability, heavily regulated

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20
Q

Examples of business objectives

A

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

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21
Q

What are some business Stakeholders

A

Owners, managers, employees, customers, suppliers, general community

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22
Q

Company structures

A

A company structure is incorporated and is a sperate legal entity to an individual or individuals

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23
Q

Stakeholder Conflict

A

Different stakeholders have competing values or interest for the business

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24
Q

Social entrepreneur

A

A person who establishes an enterprise with the aim of solving a social problems or effecting social change

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25
Q

Objectives

A

Statements of desired achievement that provide direction for the business

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26
Q

What is a stakeholder?

A

Someone that has a direct or vested interest in the activities of a business

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27
Q

Autocratic| Management Style

A

Manager tells staff what decisions have been made.-Highly centralized, communication from top down, no discussion.

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28
Q

Persuasive| Management Style

A

Manager makes decision than persuades workers of the benefits.-Decision making rests solely on manager, however employee may feel better about a decision because it is explained.

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29
Q

Consultative| Management Style

A

When the manager consults employees before making decisions.-Seeks input-Takes into account the opinions of team members

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30
Q

Participative| Management Style

A

Where the manager unites with staff to make decisions together-Decentralized decision making-two way communication-management ultimately retains control

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31
Q

Laissez-Faire| Management Style

A

Employees assume total responsibility for workplace operations-Approach problems and tasks in their own way-only constraint being budgets, timelines and goals

32
Q

Skills

A

The abilityto do somethingwell, gainedthrough trainingand experience

33
Q

Communication| Management Skill

A

A process ofcreating andexchanginginformationbetween peoplethat producesthe requiredresponse.

34
Q

Personal communication| Dot Point of Management Skill “Communication”

A

Sharing information betweenthe manager and subordinates

35
Q

Internal organisational communication| Dot Point of Management Skill “Communication”

A

Systems used to share with internal stakeholders such as employees

36
Q

Delegation| Management Skill

A

Passing ofauthority downthe hierarchy toperform tasks ormake decisions

37
Q

Planning| Management Skill

A

Formaliseddecision-makingprocess that isfuture-oriented

38
Q

SWOT Analysis| Management Skill “Planning” Dot Point

A

An assessmentof the internalstrengths andweaknessesand the externalopportunitiesand threats fora business in agiven situation

39
Q

Strategic Planning| Management Skill “Planning” Dot Point

A

Long term planning undertaken by senior management to achieve business objectives

40
Q

Operational Planning| Management Skill “Planning” Dot Point

A

Thedetailed, short termplanningundertaken by abusiness

41
Q

Tactical Planning| Management Skill “Planning” Dot Point

A

Timeframe is mediumterm. Undertaken bymiddle-levelmanagement.

42
Q

Leading| Management Skill

A

The skillof a managerwhen guidingworkers towardsachieving thegoals of thebusiness

43
Q

Decision-Making| Management Skill

A

A multistepapproachwhereby aselection ismade between arange of differentalternatives

44
Q

Interpersonal Skills| Management Skills

A

Skillsused every dayto communicateand interact withother people,both individuallyand in groups

45
Q

Corporate Culture| Corporate Culture

A

System of sharedvalues and beliefsof people within abusiness

46
Q

Official Corporate Culture| Corporate Culture

A

Formal written expression of values and beliefs desired by management

47
Q

Real Corporate Culture| Corporate Culture

A

Actual practises and values that are actually held by the employees in a business

48
Q

What are some strategies to develop positive corporate culture?| Corporate Culture

A

Creating mission, vision and values statementsEstablishing management structuresChoice of management stylesImplementing policiesBusiness documentation and forms of communicationPeoplePhysical environment and material symbolsStores, narratives and rituals

49
Q

Benefits of Delegation| Dot point of Delegation

A

Assists with smooth flow of production, acts as a time saver, provides opportunity for development and training.

50
Q

5 Step Process for Delegation| Dot point of Delegation

A

Analysis, Appointment, Briefing, Control, Apprasial.

51
Q

5 Step Process for Planning

A

Set Goals, Gather info, establish promoting and restricting factors, develop action plan, evaluate and review

52
Q

Details of Decision Making

A

Requires use of a Systematic Approach that is evidence based. Helps reduce errors and bad decisions, reflects the management style.

53
Q

Best skills for Autocratic style

A

High: Planning, decision-making, communication

54
Q

Best skills for Persuasive style

A

High: Planning, decision-makingMedium: Communication, delegation, interpersonal

55
Q

Best skills for Consultative style

A

High: Planning, decision-making, communication

56
Q

Best skills for Participative style

A

High: Communication, interpersonal, leadingMedium: Decision-making, delegating

57
Q

Best skills for Laissez-Faire style

A

High: Communication, delegating, leading

58
Q

Market Share

A

Market share is the business’s percentage of total sales controlled by the business in a industry

59
Q

Efficiency

A

The best use of resources in the production of goods and services

60
Q

Effectiveness

A

How successful a business is at achieving its objectives

61
Q

What are business owners concerned with?| Stakeholder conflict

A

Profit, market share, adherence to rules

62
Q

What are Managers concerned with?| Stakeholder conflict

A

Set and achieve objectives, career development, fair remuneration, job satisfaction

63
Q

What are employees concerned with?| Stakeholder conflict

A

Fair pay, safe workplace, career advancement, job satisfaction, secure job

64
Q

What are customers concerned with?| Stakeholder conflict

A

Quality product, customer service, ethical and socially responsible business

65
Q

What are suppliers concerned with?| Stakeholder conflict

A

Ensure that the business is profitable, paid promptly, long term supplier relationship

66
Q

What is the general community concerned with?| Stakeholder conflict

A

Business to participate in the community, ethical business, socially responsible business

67
Q

Advantages of Autocratic

A

Quick decisions, made by experienced leader, communication is direct

68
Q

Advantages of Persuasive

A

Decision making is quick, suits high risk decisions

69
Q

Advantages of Consultative

A

Variety of ideas, employee involvement, motivation and employee satisfaction

70
Q

Advantages of Participative

A

Trust and faith in employees, morale increased, Open communication

71
Q

Advantages of Laissez-Faire

A

Employee independence, motivation and satisfaction, creavity and innovation, teamwork

72
Q

Disadvantages of Autocratic

A

Quick decision is not always the best, discourages teamwork and opinions, low motivation and satisfaction

73
Q

Disadvantages of Persuasive

A

No input from workers, workers can still feel alienated, employee initiative and commitment overlooked

74
Q

Disadvantages of Consultative

A

Empoyees may not understand, time-consuming, employees may not feel valued if their ideas aren’t used

75
Q

Disadvantages of Participative

A

Can give rise to employee conflict, time consuming and lack of contribution by all employees

76
Q

Disadvantages of Laissez-Faire

A

Lack of guidance can cause some employees to have a lack of direction, does not suit untrained employees or those who need structure

77
Q

How is the appropriateness of management styles measured?

A

Nature of the task, time, experience of the employees and the manager’s preference.

Business Management Unit 3/4 (6 decks)

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