U3AOS1

Question 1

Sole Trader

Answer 1

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

Question 2

Partnership

Answer 2

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

Question 3

Private Limited Companies - Pty Ltd

Answer 3

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

Question 4

Public Listed Company - Ltd

Answer 4

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

Question 5

Government Business Enterprise

Answer 5

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

Question 6

Social Enterprise

Answer 6

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.

Question 7

Management responsibility - Operations

Answer 7

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

Question 8

Management responsibility - Finance

Answer 8

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

Question 9

Management responsibility - Human Resources

Answer 9

Manages the relationship between employees and the business

• Responsible for the recruitment and selection of the right employee regarding their skills and experience

Question 10

Management responsibility - Sales and Marketing

Answer 10

Sales - transactions where money is exchanged for a good or service

Marketing - actions taken to promote a business or its products to increase sales

Question 11

Management responsibility - Technology Support

Answer 11

Responsible for implementing and maintaining all types of technologies within the business

Question 12

Management Style - Autocratic

Answer 12

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

Question 13

Management Style - Persuasive

Answer 13

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

Question 14

Management Style - Consultative

Answer 14

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

Question 15

Management Style - Participative

Answer 15

Manager unites with staff to make decisions together

Adv
- Employees feel valued
- Employees more productive
Dis
- Time-Consuming
- Conflict can arise between employees

Question 16

Management Style - Laissez-Faire

Answer 16

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

Question 17

Management Skills - Communicating

Answer 17

Ability to transfer information from a sender to a receiver, and to listen to feedback

Question 18

Management Skills - Delegating

Answer 18

Transfer authority and responsibility from a manager to an employee to carry out specific activities

Question 19

Management Skills - Leading

Answer 19

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

Question 20

Management Skills - Interpersonal

Answer 20

Ability to deal or collaborate with people and build positive relationships with staff

Question 21

Management Skills - Planning

Answer 21

Ability to define business objectives and decide on the methods or strategies to achieve them

Question 22

Management Skills - Decision Making

Answer 22

identify the options available and then choose a specific course of action from the alternatives

Question 23

corporate culture both official and real, and strategies for its development.

Answer 23

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