Unit 3 AOS 1 - Business Foundations

Question 1

Sole Trader

Answer 1

is a business structure owned and operated by a single person

Question 2

Partnership

Answer 2

A partnership is a type of business owned by two to 20 owners.

Question 3

Private Limited Company

Answer 3

A private limited company is an incorporated business with at least one director and up
to 50 selected shareholders.

Question 4

Public Listed Company

Answer 4

A public listed company is an incorporated business that can sell shares in an open market to an unlimited number of shareholders.

Question 5

Social Enterprise

Answer 5

A social enterprise is a business that aims to make a profit and improve the community
or environment.

Question 6

Government Business Enterprise

Answer 6

Government business enterprise is a profit driven business that is owned by but managed separately from the government.

Question 7

Business Objectives

Answer 7

Business objectives are the goals a business intends to achieve.

Question 8

Business Objective - To Make a Profit

Answer 8

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.

Question 9

Business Objective - To Increase Market Share

Answer 9

A business typically wants to increase its market share to become more competitive
within an industry.

Question 10

Business Objective - To Meet Shareholder Expectations

Answer 10

Shareholders are people who have invested a sum of their own money into a business by purchasing company shares. As part owners of a business, shareholders expect a return
on their investment.

Question 11

Business Objective - To Fulfil A Market Need

Answer 11

A business fulfils a market need by providing products and services which meet the desires of a group of customers with similar needs.

Question 12

Business Objective - To Fulfil A Social Need

Answer 12

A business fulfils a social need by improving the community and environment through its business activities.

Question 13

Stakeholders

Answer 13

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

Question 14

CSR

Answer 14

Corporate social responsibility (CSR) is the ethical conduct of a business beyond legal obligations to improve the social, economic and environmental outcomes of stakeholders.

Question 15

Area Of Management - Operations

Answer 15

Operations as an area of management produces the goods or services that a business sells to customers.

Question 16

Area Of Management - Human Resources

Answer 16

Human resources as an area of management establishes and manages the relationship the
business has with its employees, including their hiring, training and termination.

Question 17

Area Of Management - Sales And Marketing

Answer 17

Sales and marketing as an area of management promotes and sells the business’s goods or services to customers.

Question 18

Area Of Management - Finance

Answer 18

Finance as an area of management handles the monetary requirements of a business.

Question 19

Area Of Management - Technology Support

Answer 19

Technology support as an area of management installs automated equipment, machinery and devices within the business and provides assistance to employees on the use of these technologies.

Question 20

Corporate Culture

Answer 20

Corporate culture is the shared values and behaviours practised by managers and
employees within a business.

Question 21

Official Corporate Culture

Answer 21

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

Question 22

Real Corporate Culture

Answer 22

Real corporate culture is the shared values and behaviours that are actually practised by
employees and managers and expressed through informal rules and habits.

Question 23

Management Style - Autocratic

Answer 23

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

Question 24

Management Style - Persuasive

Answer 24

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

Question 25

Management Style - Consultative

Answer 25

A consultative management style is a manager seeking input from employees on business
decisions but making the final decision themselves.

Question 26

Management Style - Participative

Answer 26

A participative management style is a manager communicating and discussing
information with employees in order to make decisions together.

Question 27

Management Style - Laissez-Faire

Answer 27

A laissez-faire management style is a manager communicating business objectives to
employees and allowing them to make decisions independently.

Question 28

Management Skills - Planning

Answer 28

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

Question 29

Management Skills - Decision-Making

Answer 29

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

Question 30

Management Skills - Communicating

Answer 30

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

Question 31

Management Skills - Delegating

Answer 31

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

Question 32

Management Skills - Interpersonal

Answer 32

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

Question 33

Management Skills - Leading

Answer 33

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