Unit 3 AOS 1 - Business foundations Flashcards
Sole trader
When one individual owns and runs the operations of a business.
Partnership
When a business is owned and operated by 2 to 20 people.
Private limited company
An incorporated business that has 1-50 non employee shareholders.
Public limited company
Incorporated business with a minimum of one share holder and no maximum, their shares are traded on the Australian Securities Exchange.
Government business enterprise
That is government owned and operated.
Carry out community needs while still creating a profit.
Social enterprise
A business that has the objectives of fulfilling a social need.
Business objectives
A desired outcome or specific result that a business intends to achieve.
Strategies
Are the actions undertaken to achieve objectives.
7 business obectives
- To make a profit
- To increase market share
- To improve efficiency
- To improve effectiveness
- To fulfil a market need
- To fulfil a social need
- To meet shareholder expectations
Employees
Provide labour in exchange for wages and produce/ sell the goods or services of the business.
Managers
Act on behalf of the owners/ directors to direct the business and its employees towards the achievement of objectives
Owners and directors
Invest in the business in order to receive profit (owner)/ dividends (director) in return for their investment. They also have overall responsibility for managing the businesses strategic direction.
General community
Includes the general public or groups external to the business
Customers
Purchase the good or service of the business to satisfy their needs.
Suppliers
Provides the business with the resources/ raw material used in the production process.
Management styles
Refers to the behaviour and attitude of the manager in the way that they provide direction, motivate the staff and implement plans.
Autocratic
A manager who seeks no input from employees , they have the authority to make decisions and do not delegate, these managers are task orientated and aim to meet deadlines.
Persuasive
A manager who has all authority to make decisions, and do not seek input from employees, However they take the time to explain choices to employees.
Consultative
A manager has all decision making authority however seeks input from employees to improve their decisions.
Participative
Two way communication where decision making and control is shared equaly among employees to create in inclusive and collaborative environment.
Laissez-faire
When managers have very little communication with employees, and have little control or management over employees as they set their own objectives.
How to evaluate management style
Task complexity
time
managers preference
employee experience
management skills
the abilities or expertise required by a manager to successfully complete their role and responsibilities.
Communication
Transfer of information from a sender to a receiver, occurring within and outside the business.
Delegation
Authority and responsibility to carry out specific activities is transferred from a manger to an employee.
Planning
Ability to define business objectives and determine methods or strategies that will be used to achieve those business objectives.
Leadership
Managers endeavour to influence or motivate people in the business to work to achieve the objectives.
Decision making
Identifying available options and then choosing one course of action from the alternatives.
Interpersonal skills
Management’s ability to deal or liase with people and build positive relationships with staff.
Corporate culture
It is the values, ideas, expectations and beliefs shared by the staff and managers of the business.
Official corporate culture
Formal and written communication about how people in the business operate.
Real corporate culture
Unwritten or informal rules that guide how people in the business operate.
4 elements of corporate culture
Values and practices
symbols
Rituals and celebrations
heroes
