U3AOS1 Flashcards
Sole Trader
A business owned and operated by one person that has unlimited liability
Adv
- Inexpensive to set up
- Owner keeps all profit
Dis
- Work/Life Balance
- long hours
Partnership
A business owned and operated by 2-20 people that has unlimited liability
Adv
- Inexpensive to set up
- Easier to raise capital
Dis
- Disagreements
- Profits are shared
Private Limited Companies - Pty Ltd
An incorporated business that has 1-50 non-employee shareholders and whose shares are only offered to those people whom the business wishes to have as part owners
Adv
- Limited liability
- Capital raised by offering more shares
Dis
- More expensive to set up
- Restricted number of shareholders
Public Listed Company - Ltd
An incorporated business with a minimum of 5 shareholders and an unlimited maximum number of shareholders whose shares are openly traded on the Australian Securities Exchange
Adv
- Limited Liability
- Capital raised by offering more shares
Dis
- More expensive to set up
- loss of control of who owns shares
Government Business Enterprise
A business that is government owned and operated and undertakes a commercial activity on behalf of the government
Adv
- operate with some independence from government
Dis
- Constrained through political influence and regulations
Social Enterprise
A business with the objective of fulfilling a social need and exists primarily to fulfil a vision that benefits the public or community rather than shareholders
Adv
- Helpful towards the public/community
Dis
- Difficult to focus on both social and financial objectives.
Management responsibility - Operations
Area of the business that produces goods and services and overlooks the operations system consisting of inputs, processes and outputs
- Low production costs
- ensuring high quality
Management responsibility - Finance
Area of management responsibility encompassing a range of activities around the management of money and other assets
- Recording costs, revenue and profits
- Creating budgets and making estimates of financial trends
- helps inform managers about financial position of business
Management responsibility - Human Resources
Manages the relationship between employees and the business
- Responsible for the recruitment and selection of the right employee regarding their skills and experience
Management responsibility - Sales and Marketing
Sales - transactions where money is exchanged for a good or service
Marketing - actions taken to promote a business or its products to increase sales
Management responsibility - Technology Support
Responsible for implementing and maintaining all types of technologies within the business
Management Style - Autocratic
Where the manager tells staff what decisions have been made
Adv
- Clear communication to employees.
- Decisions are made quickly
Dis
- No input from employees
- Assumption is decision is the right one
Management Style - Persuasive
Where the manager makes the decision and convinces employees its the right one
Adv
- Clear communication to employees.
- Decisions are made quickly when time is an issue
Dis
- Employees may not support the reasons for the decision
- No input from employees
Management Style - Consultative
Manager consults employees before making a decision
Adv
- More ideas to choose from
- Motivates employees
Dis
- Employees feel undervalued if idea is overlooked
- Time-consuming
Management Style - Participative
Manager unites with staff to make decisions together
Adv
- Employees feel valued
- Employees more productive
Dis
- Time-Consuming
- Conflict can arise between employees
Management Style - Laissez-Faire
Employees assume total responsibility for, and control of, workplace operations
Adv
- Encourages teamwork
- Improved communication
Dis
- Abuse freedom
- May lead to misuse of business resources
Management Skills - Communicating
Ability to transfer information from a sender to a receiver, and to listen to feedback
Management Skills - Delegating
Transfer authority and responsibility from a manager to an employee to carry out specific activities
Management Skills - Leading
ability to influence or motivate people to work towards the achievement of business objectives
Management Skills - Interpersonal
Ability to deal or collaborate with people and build positive relationships with staff
Management Skills - Planning
Ability to define business objectives and decide on the methods or strategies to achieve them
Management Skills - Decision Making
identify the options available and then choose a specific course of action from the alternatives
corporate culture both official and real, and strategies for its development.
Official Corporate Culture- is the desired culture a business wishes to establish
Real Corporate Culture-is the actual or prevailing culture that exists in a business
Strategies to develop
- Communicating desired values to staff
- Rewarding employees who show appropriate values
- Recruiting staff who fit in with the values of the business
