U3AOS1

Question 1

Define “Sole Trader”

1A- Types of Businesses

Answer 1

A Sole Trader is a business structure that is owned and operated by one individual.

Question 2

Define “Partnership”

1A- Types of Businesses

Answer 2

A Partnership is a business structure that is owned by 2 to 20 owners.

Question 3

Define “Private Limited Company”

1A- Types of Businesses

Answer 3

A Private Limited Company is an incorporated business structure that has at least one director and a maximum of 50 shareholders.

Question 4

Define “Public Listed Company”

1A- Types of Businesses

Answer 4

A Public Listed Company is an incorporated business structure that has an unlimited number of shareholders and lists and sells its shares on the ASX.

Question 5

Define “Social Enterprise”

1A- Types of Businesses

Answer 5

A Social Enterprise is a type of business that aims to fulfill a community or environmental need by selling goods or services.

Question 6

Define “Government Business Enterprise

1A- Types of Businesses

Answer 6

A Government Business Enterprise is a business that is owned and operated by the government.

Question 7

Define ““Business Objectives”

1B- Business Objectives

Answer 7

Business Objectives are the goals a business intends to achieve.

Question 8

Define “Profits”

1B- Business Objectives

Answer 8

Profit is total revenue earned minus total expenses incurred.

Question 9

Define “Market Share”

1B- Business Objectives

Answer 9

Market Share is a business’ percentage of total sales within an industry.

Question 10

Define “Effectiveness”

1B- Business Objectives

Answer 10

Effectiveness is the extent to which a business achieves its stated objectives.

Question 11

What is “Fulfilling a Market Need”

1B- Business Objectives

Answer 11

Fulfilling a Market Need is when a business fills a gap in the market, which involves addressing customer needs that are currently unmet or underrepresented by other businesses in the same industry.

Question 12

What is “Fulfilling a Social Need”

1B- Business Objectives

Answer 12

Fulfilling a Social Need is improving society and the environment through business activities.

Question 13

Define “Efficiency”

1B- Business Objectives

Answer 13

Efficiency is how productively a business uses its resources when producing a good or service.

Question 14

What is “Meeting Shareholder Expectations”

1B- Business Objectives

Answer 14

Meeting Shareholder Expectations is when a business either pays dividends to its shareholders, or increases the value of their shares. (Capital Gains).

Question 15

Define “Stakeholders”

1C- Stakeholders

Answer 15

Stakeholders are individuals, groups, or organisations who have a vested interest in the performance and activities of a business.

Question 16

Define “Owners”

1C- Stakeholders

Answer 16

Owners are individuals who establish, invest, and have a share in a business, often with the goal of earning a profit from its operations.

Question 17

Define “Managers”

1C- Stakeholders

Answer 17

Managers are individuals who oversee and coordinate a business’s employees and lead its operations to ultimately achieve the business’s objectives.

Question 18

Define “Employees”

1C- Stakeholders

Answer 18

Employees are individuals who are hired by a business to complete work tasks and support the achievement of its objectives.

Question 19

Define “Customers”

1C- Stakeholders

Answer 19

Customers are individuals or groups who interact with a business by purchasing and utilising its goods and services.

Question 20

Define “Suppliers”

1C- Stakeholders

Answer 20

Suppliers are individuals or groups that source raw materials, component parts, and processed materials and sell them to a business for use in the production of its goods and services.

Question 21

“General Community”

1C- Stakeholders

Answer 21

The General Community is the individuals and groups who are impacted by a business’s operations and decisions, often because they are located in close proximity to the business.

Question 22

Define “Autocratic Management Style”

1D- Management Styles

Answer 22

An autocratic management style involves a manager making decisions and directing employees without any input from them.

Question 23

Define “Persuasive Management Style”

1D- Management Styles

Answer 23

A persuasive management style involves a manager making decisions
and communicating
the reasons for those decisions to employees without their input.

Question 24

Define “Consultative Management Style”

1D- Management Styles

Answer 24

A consultative management style involves a manager seeking input from employees on business decisions but making the final decision themselve

Question 25

Define “Participative Management Style”

1D- Management Styles

Answer 25

A participative management style involves a manager sharing information
with employees so that employees can participate in decision-making.

Question 26

Define “Laissez-faire Management Style”

1D- Management Styles

Answer 26

A laissez-faire management style involves a manager communicating business objectives to employees and giving them freedom to make decisions independently.

Question 27

Define “Planning”

1F- Management Skills

Answer 27

Planning is the process of determining a business’s objectives and establishing strategies to achieve these aims

Question 28

Define “Decision-making”

1F- Management Skills

Answer 28

Decision making is the skill of selecting a suitable course of action from a range of plausible options.

Question 29

Define “Communication”

1F- Management Skills

Answer 29

Communication is the skill of effectively transferring information from one party to another.

Question 30

Define “Delegation”

1F- Management Skills

Answer 30

Delegation is the skill of assigning work tasks and authority to other employees who are further down in a business’s hierarchical structure.

Question 31

Define “Interpersonal”

1F- Management Skills

Answer 31

Interpersonal is the skill of creating positive interactions with other employees, to foster benefical professional relationships.

Question 32

Define “Leadership”

1F- Management Skills

Answer 32

Leadership is the skill of motivating others in order to achieve a business’s objectives.

Question 33

Define “Corporate Culture”

1H- Corporate Culture

Answer 33

Corporate culture is the shared values and beliefs of a business and its employees.

Question 34

Define “Official Corporate Culture”

1H- Corporate Culture

Answer 34

Official Corporate Culture involves the shared views and values that a business aims to achieve, often outlined in a written format.

Question 35

Define “Real Corporate Culture”

1H- Corporate Culture

Answer 35

Real Corporate Culture involves the shared values and beliefs that develop organically within a business, and are practiced on a daily basis by its employees.