UNIT 3 AOS 1

Question 1

Types of Businesses

Answer 1

• sole traders
• partnerships
• private limited companies
• public listed companies
• social enterprises
• government business enterprises

Question 2

Define Sole Traders

Answer 2

A sole trader is a business structure owned and operated by the single proprietor with the aim of making a profit, and is entitled to keep profit after personal tax and expenses but has unlimited liability over the business

Question 3

What are owners of a private limited company refereed as?

Answer 3

Owners of private limited companies own shares in the business are referred to as shareholders

Question 4

What are the pros and cons of Sole Traders?

Answer 4

Pros-

1. simplest and most cost-effective
2. owned and operated by a single person which reduces arguing over differing perspectives
3. unincorporated and therefore keeps all profit after personal tax and does not pay company tax.

Cons-

1. owned and operated by a single person which can cause an overload of work for a single individual
2. unlimited liability for all business debts and may lose personal assets to pay off debt

Question 5

Define Partnership Business

Answer 5

A partnership is a type of business owned by two to 20 owners who divide profits and responsibilities within the business.

Question 6

What are the Pros and Cons of a Partnership

Answer 6

Pros:

1. simple and cost-effective
2. Responsibilities and profits are shared between owners

Cons:

1. Disputes can occur due to differing views and opinions
2. Partners are responsible for funding the business and have unlimited liability for all business debts.
3. Individual partners must also pay personal income tax on their share of the profits.

Question 7

Define Private Limited company

Answer 7

is an incorporated business with at least one director and up to 50 selected shareholders. A private limited company is considered a separate legal entity to the owners.

Question 8

Reasons for the popularity of Private limited companies

Answer 8

These companies are popular for expanding sole traders and partnerships while gaining protection from creating a separate legal entity and limiting their liability for debts incurred by businesses

Question 9

What are some restrictions on Private limited companies?

Answer 9

1. Shareholders- the company has a minimum of two shares and is restricted to a maximum of 50 shareholders
2. Shares- can only be traded with the permission of other shareholders, which must be given before transaction takes place.

Question 10

Small vs Large Private limited Companies

Answer 10

Small vs Large Private limited Companies

Question 11

What are the pros and cons of a Private limited company

Answer 11

Pros:
1. Larger private companies can have a board made up of different individuals that have different skills, experiences which can boost management capabilities and help growth.
2. shareholders have limited liability
3. separate legal entities
4 existence is not threatened by loss of director (has perpetuity)

Cons:

1. higher degree of complexity
2. higher establishment cost
3. higher government control and reporting requirements
4. additional compliance costs

Question 12

Define Public listed companies

Answer 12

is an incorporated business that can sell shares in an open market to an unlimited number of shareholders on the ASX (Australian Securties Exchange).

Question 13

What are the pros and cons pf public listed companies?

Answer 13

Pros:

1. Limited liability
2. Able to gain extra capital through selling extra shares
3. Separate legal entity
4. Existence is not threatened by death or removal of director or shareholder (has perpetuity)

Cons:

1. Highly complex structure
2. High establishment costs
3. Needs more accountability and compliance paperwork
4. Additional compliance costs

Question 14

Define Social enterprise

Answer 14

A type of business that uses strategies to maximize improvements in human well being or the environment. there two main goals are to achieve social, cultural, community or environmental outcomes and earn revenue. They are run like businesses but redirect surplus towards social or environmental goals

Question 15

Define government business enterprises

Answer 15

is a profit-driven business that is owned by but managed separately from the government. GBE is accountable to the government and the public and has to fulfill a specific purpose outlined by the government while remaining profitable. This is often a large scale public service that aims to cater to essential public needs.

Question 16

Define the business objective: Make a profit

Answer 16

Is a business objective where profit is essential for any business to survive and grow. By generating more revenue than expenses, a business earns a profit which can then be distributed to owners and
shareholders. Profits can also be reinvested into the business to grow the business.

Question 17

Define the business objective: Increase market share

Answer 17

Market share is a business’s percentage of total sales within an industry. The business objective of increasing market share is typically to become more competitive within an industry to help increase profits and other objectives. To increase market share a business may encounter a loss such as reducing share price in order for long term gain such as acquiring new and loyal customers

Question 18

Define the business objective: Meet shareholder expectations

Answer 18

Shareholders are people who have invested a sum of their own money into a business by purchasing company shares. As they are part owners of a business, shareholders expect a return on their investment. Therefore, shareholders either expect an income from the business in the form of dividends or they hope to sell their shares at a higher price in the future after the business has grown. By meeting these expectations the company can maintain shareholders, gain shareholders and develop a positive reputation for future shareholders.

Question 19

Define the business objective: Fulfil market need and benefits

Answer 19

A business fulfills a market need by providing products and services which meet the desires of a group of customers with similar needs. By fulfilling a market need it can attract more sales and generate revenue from customers. As the customer needs are met a business can then develop a loyal customer base that generates consistent income and helps a business make a profit

Question 20

Define the business objective: Fulfil social need and benefits

Answer 20

A business fulfills a social need by improving the community and environment through its business activities. Fulfilling a social need often improves businesses’ reputations which can increase sales and therefore market share.

Additionally, as environmentally sustainable supplies usually last longer compared to unsustainable ones, a business can reduce how many supplies they use. Using fewer supplies can also increase a business’s profit by reducing expenses in the long term.

Question 21

Define Stakeholders

Answer 21

are individuals or groups that have a vested interest in the performance and activities of a business.

Question 22

Define Internal stakeholders

Answer 22

are groups who have a direct financial share or are employed by the business including owners, the board of directors, investors, shareholders, and employees.

Question 23

Define External stakeholders

Answer 23

are groups that are outside the business but are concerned or affected by its activities including customers, suppliers and the general community

Question 24

Owners/Shareholders as internal stakeholders, their role within the business and there a vested interest

Answer 24

Invest funds into a business where there invested interest is a return on there investments whether from profits, dividends or increase in share price, whilst creating and maintaining a positive impact on stakeholders.

Question 25

Managers as internal stakeholders, their role within the business and there a vested interest

Answer 25

Coordinate employs and tasks to achieve business objectives where there invested interest is pay that matches the responsibility of managing a business, status, and recognition for work achievements, opportunities for career development.

Question 26

Employees as internal stakeholders, their role within the business and there a vested interest

Answer 26

Complete business work tasks where there invested interest is fair pay and work expectations, opportunities for professional development and promotion and also long term job security

Question 27

Customers as external stakeholders, their role and vested interest

Answer 27

Purchase and use a business’s products or services with vested interest in receiving a product or service that is of quality and value for money

Question 28

define vested interest

Answer 28

is a strong connection to a business that can lead to personal gain or benefit.

Question 29

Suppliers as external stakeholders, their role and vested interest

Answer 29

Provide raw materials and resources with the invested interest in producing a profit through providing supplies and to maintain or increase revenue and establishing a long duration relationship with business.

Question 30

General community as external stakeholders, their role and vested interest

Answer 30

Observe the impacts of the business operations with invested value on the effects and improvements on the community and environment such as the benefits from the employment opportunities created
by the business

Question 31

Stakeholder conflicts through different invested interests examples

Answer 31

Manager: wants increased salaries for achieving business objectives. vs Owner/shareholder: wants to reduce managers’ salaries to increase profits

Manager: wants to reduce employee wages to increase profits. vs Employee: wants increased wages and improved working conditions for completing tasks

Manager: wants to increase prices to increase profits vs Customer
wants quality products for lower prices

Manager: wants to automate production to reduce reliance on employee labor vs General community: wants increased employment rates to boost the local economy

Customer: wants quality products or services quickly at the lowest possible price. vs General community: wants high employment rates, high wages, and sustainable practices to be implemented by businesses.

Employee: wants to work for a business that uses ethical suppliers. vs Supplier: may use unethical methods to reduce
costs and increase profits.

Question 32

Define Corporate social responsibility (CRS)

Answer 32

Is the ethical conduct of a business beyond legal obligations to improve the social, economic and environmental outcomes of stakeholders.

Question 33

Examples of internal Stakeholders their legal obligations and CSR considerations:

Answer 33

Manager/Employees:
Legal obligations: being paid minimum wage, safe working conditions, hire and promote without discrimination.
CSR considerations: Provide flexible working shifts, provide work from home options.

Question 34

Customer as external Stakeholders their legal obligations and CSR considerations

Answer 34

Customer:
Legal obligations: provide goods and services as described in promotions and packaging, honor returns and refunds.

CSR considerations: Ethical or green marketing that encourages sustainable purchasing, provide customers options that contribute to community or environment.

Question 35

Suppliers as external Stakeholders their legal obligations and CSR considerations

Answer 35

Supplier:
Legal obligations: Meet all supplier agreements including payment, delivery, schedules and other terms and conditions.

CSR considerations: Provide reasonable delivery schedules and fair payment for supplies

Question 36

General community as external Stakeholders their legal obligations and CSR considerations

Answer 36

General community:
Legal obligations: Waste is disposed of properly and in a timely manner.

CSR considerations: boost the local economy through local hiring, reduce or recycle waste, use renewable energy sources, donate to charitable organizations.

Question 37

Advantages and disadvantages of CSR considerations for a business and its employee

Answer 37

A business can benefit from CSR as practices improve reputation and therefore may lead to increase sales. Employees also benefit from corporate social responsibility through employee satisfaction.

Question 38

Advantages and disadvantaged of CSR considerations regarding time and money

Answer 38

Time: Sustainable supplies last longer compared to unsustainable supplies, reducing the time needed to source supplies repeatedly
Cons: can be time-consuming to practice CSR for multiple stakeholders at a time.

Money: CSR practices can lower costs of operations in the long term
Cons: CSR practices can be more expensive in the short term.

Question 39

Define operations as an area of management and how it helps achieve business objectives.

Answer 39

Operations management is coordinating and organising the activities involved in producing the goods or services that a business sells to customers.

This area of operations can help achieve business objectives through producing a product or service for a business to sell to its customers therefore holds a significance important in a business.

*** add more

Question 40

Operations management activities vs corresponding to CSR

Answer 40

Establish the facilities, machinery, and equipment required for the production of goods or services
vs using renewable energy sources or energy-efficient machinery and equipment in production to reduce emissions and benefit the environment.

Source the raw materials and resources required for
production vs sourcing from suppliers that provide fair pay and working conditions for employees to maintain satisfaction and source sustainable materials.

Manufacture products or deliver a service vs the waste is reduced or recycled during operations

Question 41

Define human resources as an area of management and how it helps achieve business objectives.

Answer 41

Establishes and manages the relationship the business has with its employees, including their hiring, training and termination.

It helps a business achieve its objectives by providing all the other areas of management with employees they require. Human resources management ensures all employees have relevant skills and experience to complete work tasks and also manage the pay and support of employees. If employees are treated well they can feel motivated and increase performance which in turn can contribute to making a profit and achieve business objectives.

Question 42

Human resource management and corresponding to CSR

Answer 42

Recruit and hire employees vs hiring local workers to decrease local unemployment rates and Provide internship placements community members.

Train employees vs to practice waste-reducing methods and Improve the employability through increasing their skills and experiences

Support employees vs provide flexible working hours, provide additional workplace facilities and provide employees the time to volunteer for social and environmental causes.

Terminate employees vs Providing support for employees to find further employment such as resume building or interview skills and reassign employees to other parts of the business if their previous roles are no longer required

Question 43

Define Sales and marketing as an area of management and achieving business objectives

Answer 43

Promotes and sells the business’s goods or services to customers.

Which contributes to business objectives by encouraging customers to purchase the business’s goods or services. Attracting customers and increasing sales contributes to business objectives such as meeting shareholder expectations, as more sales can increase the business’s value.

Question 44

Sales and marketing management and corresponding to CSR

Answer 44

Promote the goods or services through digital television, radio or print media. vs Encourageing customers to only purchase goods or services they require. To encourage customers to purchase goods or services that use sustainable materials and provide customers with sustainable packaging or reusable bags.

Determine the purchase options for a
good or service. vs Providing options that allow customers to positively contribute to the general community or the environment.
- Reusable plastic bags at supermarkets.
- BYO packaging

Determine locations and distribution
methods for goods or services. vs Reducing the amount of packaging in the distribution process

Question 45

Define Finance as an area of management and achieving business objectives

Answer 45

handles the monetary requirements of a business, contributes to business objectives by raising funds, budgeting and preparing reports of all financial matters. Therefore, the area of finance would directly affect the funding of all other areas of management that enables these areas to contribute to business objectives.

Question 46

Finace management and corresponding to CSR

Answer 46

Raise funds for the business to operate or grow. vs Obtaining loans from banks that operate ethically

Allocate funds to different areas of management. Provide funds for CSR initiatives such as:
- Purchasing energy-efficient machinery or equipment.
- Research and development for sustainable products
and processes.

Monitor the revenue and expenses of a business to ensure the business is making a profit. vs Donating a portion of profits to a local charitable organization.

Produce financial reports in accordance with relevant rules and regulations. vs produce honest financial statements

Question 47

Define Technology support as an area of management and achieving business objectives.

Answer 47

Installs equipment, machinery, and devices within a business and provides assistance for employees for any technical issues.

Provides the business with the smooth functioning of all equipment and devices whilst helping achieve business objectives as effective functioning and use of technology can help maximize achievement of business objectives.

Question 48

Technology operations and corresponding to CSR

Answer 48

Installs and maintains equipment and machinery. vs Installing energy-efficient equipment or machinery.

Provides assistance to employees with issues with equipment and machinery vs Reduceing the use of paper in the workplace by encouraging digital
communication.

Ensure all business information is protected and secure vs Avoid exploitation of customer data for marketing purposes

Question 49

autocratic management style

Answer 49

is a manager making decisions and directing employees without any input from them this allows a manager to retain centralized control over business decisions.

Question 50

Business pros and cons: Autocratic management

Answer 50

Pros: Management has full control over decisions

Cons:

• no contribution from employees as management control decisions.
• Business can not benefit from the ideas of employees

Question 51

Define centralized control

Answer 51

is one person having concentrated authority to make decisions.

Question 52

Decentralized control

Answer 52

is multiple people having the authority to make business decisions.

Question 53

Employee pros and cons: Autocratic style

Answer 53

Pros:
- Employees have less responsibility and risk as they only have to follow the manager’s instructions.

Cons:
- Employee growth may be limited as there are
no opportunities for contribution.
- Employee motivation can be low as an inability to participate in decisions which can make them feel undervalued
- Employees may be more likely to leave their job due to ongoing low motivation.

Question 54

Time pros and cons: Autrocatic style

Answer 54

Pros:
- Decision making can be quick as there
is no discussion or consultation with
employees.
- Work tasks can be completed quickly
as directions are clear and employee
compliance is immediate

Cons:
- none stated

Question 55

Money pros and cons: Autocratic management

Answer 55

Pros:
- Production can occur quickly due to quick decision making which results in higher outputs and potentially increased sales.

Cons:
- The cost of replacing employees who may have left due to low motivation can be high. Employees may feel unmotivated as they are not included within business decisions and therefore not feel involved within the company which can reduce motivation.

Question 56

Define persuasive management style

Answer 56

is where a manager makes the decisions and communicates/briefs them of the reasons the decisions were made to the employees without their input.

Informing employees of decisions while justifying why these decisions were made helps establish credibility and trust among the employees.

Question 57

Business pros and cons: Persuasive management

Answer 57

Pros:
- Management has full control and may gain employee’s trust and support by explaining the reasons for decisions

Cons:
- All solutions generally come from the
manager, as there is no contribution from
employees.

-Business can not benefit from the ideas of
an employee as they are not acknowledged

Question 58

Employee Pros and Cons: Persuasive management

Answer 58

Pros:
- Employees have less responsibility and risk
as they only have to follow the manager’s
instructions.

• Employees may feel like they are being
  considered and involved when the benefits of management
  decisions are explained to them.

Cons:
- Employee growth may be limited as there are no opportunities for contribution.

• Employee motivation may decrease as they can feel undervalued from being excluded from decision making.
• Employees may take more sick leave days and become more likely to leave their job due to ongoing low motivation.

Question 59

Time Pros and Cons: Persuasive management

Answer 59

Pros:
-Decision making may be quick as there is no
discussion or consultation with employees.

• Work tasks can be completed quickly as
  directions are clear and employee compliance
  is immediate.

Cons:
- The manager has to take some time to
explain business decisions to employees

Question 60

Money pros and cons: Persuasive management

Answer 60

Pros:
- Production can occur quickly due to quick
decision making which results in higher
outputs and potentially increased sales.

Cons:
- The cost of replacing employees who
may have left due to low motivation can
be high.

Question 61

Define consultative management style

Answer 61

Where a manager seeking input from employees on business decisions but makes the final decision themselves. This allows the communication and involvement of employees and manager/s and also allows for employees to give feedback and be involved in the functioning of the business. However consultative managers still have centralized control over decisions.

Question 62

Business Pros and Cons: Consultative management

Answer 62

Pros:
- Management can gain a variety of ideas from the suggestions of employees which can lead to better decision making outcomes.

Cons:
- Employees may make suggestions that are not suitable due to a lack of knowledge and experience of the complexity of a business situation.

Question 63

Employee Pros and Cons: Consultative Management

Answer 63

Pros:
- May have increased motivation because
they can contribute to decision making
and therefore feel valued by the business.

Cons:
- Potential for employee conflict, resentment
or feelings of being undervalued if ideas
are ignored or overlooked during decision
making

Question 64

Time Pros and Cons: Consulative management

Answer 64

Pros:
- None stated

Cons:
- Decision making may be slower as the
the manager consults employees for their input

Question 65

Money Pros and Cons: Consultative management

Answer 65

Pros:
- Potential for increased sales and profit
as the quality of decisions and outcomes
may be improved from employee input.

Cons:
- None stated

Question 66

Define participative management style

Answer 66

is a manager communicating and discussing information with employees in order to make decisions together. This encourages managers and employees to share information and the role of decision making. This allows for business decisions to be made collectively and therefore managers have decentralized control over decisions as both managers and employees agree on the business action.

Question 67

Business Pros and Cons: Participative Management

Answer 67

Pros:
- May improve quality of decisions from
using various perspectives of managers and
employees.

-Can improve the relationship between
management and employees due to sharing
experiences and ideas.

Cons:
- Accommodating multiple views may
result in a compromise that decreases
the quality of decisions.

• Manager may lose some control as
  employees now have decision making
  power as well.

Question 68

Employee Pros and Cons: Participative management

Answer 68

Pros:
- Employee motivation and productivity may
increase due to participation in decision making.

• Employees feel highly valued and can develop a
  sense of ownership over decisions and meeting
  business objectives.
• Potential for highly positive and supportive
  work environments.

-Employee growth may increase due to more
opportunities to acquire new skills and
experiences.

Cons:
- Potential for conflict between
employees when there is disagreement
between shared views and opinions.

• Some employees prefer to follow
  instructions and may not be
  comfortable contributing ideas.

Question 69

Money Pros and Cons: Participative management

Answer 69

Pros:
- Potential for increased sales and profit as the
quality of decisions and outcomes are improved
with manager and employee collaboration

Cons:
- None stated

Question 70

Time Pros and Cons: Participative management

Answer 70

Pros:
- none stated

Cons:
-Decisions can take a long time as a
consensus between everyone has to be
reached.

Question 71

Define laissez-faire management style

Answer 71

is a manager communicating business objectives to employees and allowing them to make decisions independently. Where the manager listens to the employees and their feedback on how business objectives can be achieved. Generally Employees are given the responsibility of making decisions that aim to achieve business objectives.

Question 72

Business Pros and Cons: Laissez-Faire management

Answer 72

Pros:
- Creates an environment that can
encourage creative and innovative
solutions.

Cons:
- Accommodating multiple views may result in
a compromise that decreases the quality of
decisions.

-A manager may lose some control as employees
now have decision-making power as well.

Question 73

Employee Pros and Cons: Laissez-Faire Management

Answer 73

Pros:
- May have increased motivation and
productivity due to a highly independent
work environment, high levels of trust
and empowerment.

• Can increase opportunities for employee
  growth that are either coached or self directed

Cons:
- Potential for conflict when employees do not
cooperate and insist on implementing their
own ideas.

Question 74

Time Pros and Cons: Laissez-faire Management

Answer 74

Pros:
- None stated

Cons:
- Potential for employees to spend large
amounts of time on discussions regarding
decision making.

Question 75

Money Pros and Cons: Laissez-faire Management

Answer 75

Pros:
- Potential for increased sales and profit
as the quality of decisions and outcomes
are improved through highly innovative
solutions.

Cons:
- Potential for employees to allocate excessive
resources to business decisions.

Question 76

Management style choice: Time

Answer 76

autocratic or persuasive management styles allow decisions to be made quickly as managers do not need to discuss or reach a consensus with employees. Work activities or solutions can be completed quickly through one-way instructions.

Whereas for extended periods of time available for a task allow the use of management styles, such as consultative, participative or laissez-faire, which have two-way communication and shared decision-making can help make beneficial decisions.

Question 77

Management style choice: Experience of employees

Answer 77

Inexperienced employees who may not have relevant knowledge or experience in the business will benefit from an autocratic or persuasive style where the manager holds centralized control to help make potentially the best decisions for the business.

Whereas for more experienced or highly experienced employees managers may use 2 way communication or decentralized control type style of management to make the best decisions possible.

Question 78

Management style choice: Nature of tasks

Answer 78

simple tasks can be completed sufficiently with one way communication styles where it can be completed easily. More complex tasks may be beneficial through the help of employees where they can help enhance decisions and potential outcomes of the business.

Question 79

Management style choice: Manager Preference

Answer 79

A manager with a higher desire for control would prefer centralized decision making and one-way communication to complete work activities quickly with minimal disruption from employees. Conversely, a manager with a lower desire for control would benefit from management styles with employees playing a part in the decision-making process.

Question 80

Planning and how this skill can be applied:

Answer 80

Planning is the manager’s ability to establish objectives and strategies to achieve them.

Planning is crucial to business success as it helps a manager identify a goal or business objective. The manager then develops policies and procedures to help achieve the goal. Planning ensures that the business is able to run as smoothly as possible. Failing to plan can cause managers to have insufficient information on business decisions and then use less effective strategies.

Planning can be applied through:
• setting business objectives.
• outlining strategies that can achieve those objectives.
• searching for further information to identify alternative options.
• organising resources required to execute the strategies.

Question 81

Define decision-making and how this skill can be applied

Answer 81

Decision-making is the manager’s ability to determine a suitable course of action for the business from a range of alternatives.

Decision making can be applied through:
• considering relevant information.
• evaluating the advantages and disadvantages of each option.
• determining an appropriate choice that will achieve the business’s objectives

Question 82

Define communicating and how this skill can be applied

Answer 82

Communicating is the manager’s ability to clearly exchange information with employees and relevant stakeholders.

Managers must be receptive and understanding to employees’ questions and information, in order to help the business, run smoothly.

Communicating can be applied through:
• conveying desired objectives to employees.
• sharing relevant business decisions to employees.
• provide constructive feedback to employees.
• listening to employees’ updates and ideas.

Question 83

Define delegating and how this skill can be applied:

Answer 83

Delegating is the manager transferring authority and responsibility to employees for business tasks.

Business objectives can be achieved in a shorter period of time and even at a higher quality by spreading tasks across more people.

Delegating can be applied through:
• selecting an appropriate employee for a specific business task.
• providing clear objectives for the employees to achieve.
• giving ownership of the task to the selected employee.

Question 84

Define Interpersonal and how this skill can be applied

Answer 84

Interpersonal skills is the manager’s ability to interact positively with employees to create and maintain professional relationships.

By creating relationships with employees they may be more
motivated to achieve business objectives if their managers are relatable, supportive and make an effort to understand them individually.

Interpersonal as a skill can be applied through:
• praising and thanking employees.
• getting to know employees’ backgrounds and personalities.
• recognizing an individual employee’s motivations.

Question 85

What are the 6 management skills?

Answer 85

• delegating
• communicating
• interpersonal
• planing
• leading
• decision making

Question 86

What are the 5 management styles?

Answer 86

• autocratic
• persuasive
• consultative
• participative
• laisse-faire

Question 87

Define leading and how this skill can be applied:

Answer 87

Leading is the manager’s ability to motivate employees to work towards business objectives.

Employees are more likely to be motivated towards completing work tasks when they understand that it contributes to a wider business vision. Employees can be inspired when a manager leads by example, making them more likely to work towards the vision of the
business.

Leading can be applied through:
• Sharing the business vision with employees.
• creating a positive corporate culture that integrates the business’s philosophy.
• practising the behaviours they want their employees to adopt.

Question 88

Relevant management skills for the autocratic management style:

Answer 88

Planning: Only the manager can set objectives, choose strategies and organize required resources.

Decision-making: The manager must consider all alternatives and choose the appropriate course of action since they make all business
decisions.

Communication: Used to clearly deliver information, instructions and provide feedback to employees but one-way communication means the skill is not used to receive any information from employees.

Delegating: Used to assign tasks to different employees. Choosing the most appropriate employee is not as important
under this management style as tasks are usually simple or for
inexperienced employees.

Interpersonal: Employees are expected to implement decisions made by the manager which reduces the need for interpersonal
relationships.

Leading: Leading is less important as employees are expected to
implement the decisions made by the manager.

Question 89

Relevant management skills for the persuasive management style

Answer 89

Planning: Only the manager can set objectives, choose strategies and organizes required resources.

Decision-making: The manager must consider all alternatives and choose the appropriate course of action since they make all
business decisions.

Communication: Used to clearly deliver information, instructions and provide feedback to employees and explain business decisions but only one way communication as they do not receive any information from employees..

Delegating: Used to assign tasks to different employees based on
their skills.

Interpersonal • Can be helpful in maintaining an employee’s desire to continue working for the manager and can develop through explaining business decisions.

Leading: Can be helpful for employees to understand the purpose of
the work. Leading is less important as employees are expected to
implement the decisions made by the manager.

Question 90

Relevant management skills for the consultative management style

Answer 90

Planning: Only the manager can set objectives, choose strategies and
organise required resources.

Decision-making: The manager must consider all alternatives and choose the appropriate course of action since they make all business
decisions.

Communication: Used to deliver information, instructions and provide feedback to employees. Also used to receive and respond to ideas or feedback from employees.

Delegating: Used to assign tasks to different employees based on their skills and preferences.

Interpersonal: Developing a positive relationship with employees can improve the quality of an employee’s contributions to business decisions.

Leading: Motivating employees towards the business’s vision can improve the quality of employee’s contributions to business decisions.

Question 91

Relevant management skills for the participative management style

Answer 91

Planning: Plans are made by groups which allows planning responsibilities to be shared between the manager and employees.

Decision-making: Decisions are made by all members of the group, reducing the importance of this skill on the manager.

Communication: Used to share and discuss information with employees to make business decisions together and used to receive and respond to ideas or feedback from employees.

Delegating: Decisions on the allocation of tasks may be made collectively by managers and employees.

Interpersonal: Productive and positive relationships can directly affect the quality of group discussions and decisions.

Leading: Decisions made by the group are more likely to achieve objectives if employees are genuinely motivated by the business’s purpose and there is respect for the manager

Question 92

Relevant management skills for the laissez-faire management style

Answer 92

Planning: Strategies most likely determined by employees.

Decision-making: Most business decisions are made by employees. Decision-making required on selecting appropriate employee
for business tasks.

Communication:Used to clearly outline the business’s vision to employees. Used to be kept up to date on the progress of objectives. Used to listen to requests from employees for additional
support required to achieve business objectives.

Delegating: Used to select appropriate employees to take ownership of different areas of the business.

Interpersonal: Manager may have limited contact with employees.
Leading. A clear business purpose and respect for the manager directly affects the quality of business decisions made by employees to, achieve business objectives.

Question 93

Corporate culture

Answer 93

is the shared values and behaviors practiced by managers and employees within a business.

Question 94

Official corporate culture

Answer 94

is the shared values and beliefs desired by a business and expressed through elements such as formal rules and symbols.

Question 95

Real corporate culture

Answer 95

is the shared values and behaviors that are practiced by employees and managers and expressed through informal rules and habits.

Question 96

The strategies of official corporate culture and intended effect: Shared objective

Answer 96

Having a vision or mission statement which shows the business focus and objectives has the intended effect of showing a business’s purpose, values and beliefs and gives employees a shared goal.

Question 97

The strategies of official corporate culture and intended effect: Policies

Answer 97

A business policy and procedure documents have the intended effect to develop consistent behaviors and expectations among employees through written rules, regulations and processes.

Question 98

The strategies of official corporate culture and intended effect: Training

Answer 98

Scheduled training programs have the intended effect to improve and develop employees’ skills as they act, behave and work in a particular way.

Question 99

The strategies of official corporate culture and intended effect: Symbols

Answer 99

Business name, logos, slogans have the intended effect to help employees and customers identify the business.

Question 100

The strategies of official corporate culture and intended effect: Uniform

Answer 100

Compulsory uniform for employees with the intended effect to clearly identify employees and help show a professional image.

Question 101

Strategies and indicators of real corporate culture: Hiring

Answer 101

Hire employees with similar views and beliefs that support corporate culture and high external employees with the intended effect of building a group of employees that match corporate culture and also introduce to ideas and skills to business

Question 102

Strategies and indicators of real corporate culture: Promotion criteria

Answer 102

Promotions are made based on performance and promote internally (staff) rather than externally which has the intended effect of encouraging employee growth, experience, performance and also loyalty to the business.

Question 103

Strategies and indicators of real corporate culture: Management style

Answer 103

Management styles such as autocratic, persuasive, consultative, participative and lassez-faire all have the intended effect to help complete work tasks quicker, promote employee involvement, independence and creativity within the workplace. Thus develops real corporate culture within the buisness

Question 104

Strategies and indicators of real corporate culture: Work layout

Answer 104

Collaborative and closed offices with the intended effect to promote teamwork and collaboration between employees and also work individually. Which can suit individual employees to work at a high-performance level.

Question 105

Strategies and indicators of real corporate culture: Rituals (regular work practices)

Answer 105

Regular work meetings and social gatherings with the intended effect to help build relationships which inturn can increase work relationships

Question 106

Strategies and indicators of real corporate culture: Dress code

Answer 106

Business attire and/or Casual wear that helps show a professional image and promotes formal interactions between employees and with casual wear can shows a relaxed image and promotes creativity and diversity.

Question 107

Strategies and indicators of real corporate culture: Celebrations

Answer 107

Employee of the month awards, rewards for specific achievements with the intended effect to award high performance which can increase the employee or other employees to increase performance and can also promote loyalty.