unit 3 aos 1

Question 1

Define Sole traders

Answer 1

owned by one person
- responsible for all aspects of the business
- (unlimited liability)

Question 2

Define Partnership

Answer 2

a business structure that involves between 2 and 20 people who run a business together
- unlimited liability - partners may have different sized shares

Question 3

Define Limited Companies

Answer 3

a business with 2-50 shareholders, whose stocks cannot be bought or exchanged on the stock market

Question 4

Define Listed Companies

Answer 4

a business without a minimum of shareholders, whose shares are freely traded on the stock exchange

Question 5

Define Social Enterprises

Answer 5

Private Sector business that exists to distribute profits to benefit the community or social need

Question 6

Define Government Business Enterprises

Answer 6

A business that is government-owned and operates in the public sector

Question 7

Define Employees & Shareholders

Answer 7

Employees want fair wages, but this will reduce the business’ profit and dividends shareholders receive

Question 8

Define Management & Customers

Answer 8

management want to make a larger profit, so they keep prices high, leads to upset customers who want fair prices

Question 9

Define Suppliers & members of community

Answer 9

suppliers may use unethical practices to keep prices down, this can then upset members of the community

Question 10

Define Communication

Answer 10

The ability to transfer information from a sender to receiver, as well as listen to feedback

Question 11

Define Delegation

Answer 11

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

Question 12

Define Planning

Answer 12

ability to define business objectives and decide upon the methods and strategies to achieve them

Question 13

Define Leadership

Answer 13

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

Question 14

Define Decision-making

Answer 14

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

Question 15

Define Interpersonal

Answer 15

The skills used to interact with others, and the ability to deal or liaise with people and build relationships with staff

Question 16

List of Business Objectives

Answer 16

• make profit
• increase market share
• improve efficiency
• improve effectiveness
• fulfill market need
• fulfil social need
• meet shareholder expectations

Question 17

Define Profit

Answer 17

Difference between revenue and expenses
revenue - expense

Question 18

Define Market Share

Answer 18

Percentage of the market controlled by the business

Question 19

Define shareholder

Answer 19

owner of a company

Question 20

Define efficiency

Answer 20

best use of resources in the production of goods and/or services

Question 21

Define Autocratic management style with dis / adv

Answer 21

Autocratic: manager tells staff what decisions have been made
- nature of task : simple tasks
- time: useful in times of crisis
- employee experience: if they lack knowledge

Question 22

Define Persuasive management style with dis / adv

Answer 22

Persuasive - manager attempts to convince employees that the decisions (sell the decision) that have made are the correct one while retaining final decision-making power
nature of task: simple task
Time : quick decisions are needed
Employee experience : if they lack knowledge

Question 23

Define consultative management style with dis / adv

Answer 23

manager seeks input from employees before making decisions
nature of task: more complex / challenging
Time : if their is time for feedback
Employee experience : more informed

Question 24

Define participative management styles with dis / adv

Answer 24

manager unites with staff to make decisions together
nature of task: complex / creativity needed
Time : sufficient time
Employee experience : knowledgeable

Question 25

Define Laissez-faire management styles with dis / adv

Answer 25

employees assume total responsibility for, and control of, workplace operations
nature of task: high creativity required
time : all time scenarios
Employee experience : highly skilled

Question 26

Who are stakeholders?

Answer 26

stakeholders are people/groups who have vested interest in a business

Question 27

define owners

Answer 27

also known as shareholders own a business

Question 28

define managers

Answer 28

have responsibility of running a successful business

Question 29

define employees

Answer 29

people who work in business in exchange for money

Question 30

define customers

Answer 30

obtain quality goods / services

Question 31

define suppliers

Answer 31

provide materials used in production process

Question 32

define general community

Answer 32

people who live within the area that the business operates

Question 33

define corporate cultures

Answer 33

system of shared values and beliefs of people within an organization

Question 34

define official corporate culture

Answer 34

values and beliefs the company is trying to convey to public
- mission statements
- logan / slogans
- stated values / policies

Question 35

define real corporate culture

Answer 35

actual values and beliefs present in the company
- way staff dress / uniform
- behavior’s and way employees treat each other

Question 36

Types of business sizes

Answer 36

small - 0-20 employees
medium - 20-200 employees
large - 200+ employees

Question 37

Private Sector

Answer 37

sole traders, partnerships, private companies, public companies, social enterprises

Question 38

Public Sector

Answer 38

government business enterprise

Question 39

Cost of Setup /government regulations different types of businesses

Answer 39

none - government business enterprise with high government regulation
low - sole trader, partnership,
medium - private limited company
high - public listed company

social enterprise depends on whether its sole trader, partnership etc.

Question 40

Characteristics of types of businesses

Answer 40

• profits
• decision making
• owner liability
• ownership
• government regulation
• cost of setup

Question 41

examples of stake holders

Answer 41

• owners, managers, employees, customers, suppliers, community, government,

Question 42

Interests of stake holders

Answer 42

Owner - get a return on investment through dividend / capital gain
Manager - be involved in setting objectives / ensure to achieve goals
employee - earn fair pay, good working conditions
customer - receive good quality products
supplier - see business increase sales so they can supply more and be paid on time
general community - see a business thrive, employ people and sell products at fair prices

Question 43

define business objective

Answer 43

desire of achievement providing direction for a business. can be short, medium or long term social or financial goal. SMART SPECIFIC MEAUSRABLE ACHIEVABLE RELEVANT TIMEBOUND

Question 44

considerations of stake holders

Answer 44

owner - prefer town/hold shares in ethical business
Manager - incorporate csr in decision making for reputation
employee - want to be proud of employer be treated nice
customer - purchase quality / sustainable products from ethical businesses
supplier - ensure csr practice’s
general community - would like businesses to support local programs, minimize waste, not pollute environment

Question 45

elements of corporate cultures

Answer 45

• core values
• ritual and celebrations
• communication
• heroes
• physical environment

Question 46

examples of similarities between business types

Answer 46

• liabilities
• incorporation the legal process of incorporation which involves a lengthy documentation process to meet regulatory obligations.