Unit 3 AOS 1 Flashcards
shareholders
the owners of a company
unlimited liability
when the business owner is personally held responsible for all the debts of their business
limited liability
when the shareholders in a company will not be held personally responsible for the debts of that business
incorporation
the process that businesses go through to become a registered company and a separate legal entity from the owner/shareholder
sole trader
a business owned and operated by one person
partnership
a business owned by 2 - 20 people
private limited company
an incorporated business that has a minimum of 1 shareholder and a maximum of 50 non-employee shareholders, and whose shares are only offered to people whom the business wishes to have as part owners
public listed company
an incorporated business with a minimum of 1 shareholder and no maximum, and whose shares are openly traded on the Australian Securities Exchange
social enterprise
a business with the objective of fulfilling a social need
government business enterprise
a type of business that is government owned and operated
objective
a desired outcome or specific result that a business intends to achieve
market share
the proportion of total sales in a given market or industry that is controlled or held by a business, calculated for a specific period of time
efficiency
how well a business uses resources to achieve objectives
effectiveness
the degree to which a business has achieved its stated objectives
stakeholders
groups and individuals who interact with the business and have a vested interest in its activities
manager
the person who has the responsibility for successfully achieving the objectives of the business
employees
the people who work for the business and who expect to be paid fairly, trained properly and treated ethically in return for their contribution to production
customers
the people who purchase goods and services from the business, expecting high quality at competitive prices
suppliers
businesses or individuals who supply materials and other resources to a business so that it can conduct its operations
CSR
the obligations a business has over and above its legal responsibilities to the wellbeing of employees and customers, shareholders and the community, as well as the environment
management style
the behaviour and attitude of the manager when making decisions, when directing and motivating staff, and when implementing plans to achieve business objectives
autocratic management style
one where the manager tells staff what decisions have been made
persuasive management style
one where the manager attempts to ‘sell’ decisions made
consultive management style
one where the manager consults employees before making decisions
participative management style
one where the manager unites with staff to make decisions together
Laissez-Faire management style
one where the employees assume total responsibility for, and control of, workplace operations
management skills
the abilities or competencies that managers use to achieve business objectives
communication
the ability to transfer information from a sender to a receiver, and to listen to feedback
delegation
the ability to transfer authority and responsibility from a manager to an employee to carry out specific activities
planning
the ability to define business objectives and decide on the methods or strategies to achieve them
leadership
the ability to influence or motivate people to work towards the achievement of business objectives
decision making
the ability to identify the options and then choose a specific course of action from the alternatives
interpersonal skills
the ability to deal or liaise with people and build positive relationships with staff
corporate culture
the values, ideas, expectations and beliefs shared by the members of the business
profit
the amount of money left over once expense have been deducted from the revenue earned
market need
to meet customer expectations or provide a good / service that is not otherwise available to a market
social need
to improve the wellbeing of the community or the environment
