Unit 3 Outcome 1

Question 1

What is a soletrader

Answer 1

Sole trader is owned and run by on person, may employ others to work for them, has one owner and the objectives is to make profit and grow the bussiness. Has unlimited liability which requires the owner to pay any losses and cover debts of thebussiness

Question 2

What is a Partnership

Answer 2

2 or more people entering into an agreement to run an enterprise to earn and share profits. generally between 2-20 peope have ownership. the objectives are to make profit, grow the bussiness and increase capital. They have unlimited liability

Question 3

What is a private limited companies

Answer 3

Companies that are separate legal entities to the shareholders where shares are owned by family member or close friends. 2- 50 shareholders, the objectives are to make profit and grow the business. they have limited liability

Question 4

What is a public listed companies

Answer 4

A business that has shares that are listed on the asx and are available for any member of the public to buy and sell. no limit on number of shareholders. the objectives is to make profit and grow the bussiness.

Question 5

What is limited liability?

Answer 5

limited liability is having separate legal entity from the business meaning that shareholders are not responsible for the debts of the company

Question 6

What is a social enterprise?

Answer 6

an organisation that uses market based ventures to achieve a benefit to the community. The objective is to make profit that allows the social projects to be funded. they have limited liability

Question 7

What are the 5 main bussiness objectives?

Answer 7

To make a profit- maximising the margin between revenue and expenses is a major indicator of business size and success from the sales of their goods and service
To increase market share- the proportion of total sales in a market or industry compared to like bussinesses
To fulfill market need- providing a good or service that is currently not available or is limited in supply/accessibility/affordaibility
To fulfill social need- providing a good or service that contributes to or benefits the community oor enviroment in which it operates
To meet shareholders expectations- investors assume that they will get a return on their investment and that it will increase in value

Question 8

Define a stratergy and objective

Answer 8

stratergies are a series of actions undertaken to achieve the object
A business objective is statements of desired achievement which provide direction for the business

Question 9

what are the 3 type of bussiness objectives?

Answer 9

Financial objectives- relate to the desired financial performance of the bussiness
Social objectives- relate to the role of a bussiness in the community
Marketing objectives- relate to the way in which customers know about the products/ services and how to sell more

Question 10

What is a Smart Goal

Answer 10

Specific
Measurable
Attainable
Relevant
Time-Based

Question 11

What is a shareholder and a stakeholder

Answer 11

A shareholder is a part of the owners of a company
A stakeholder are people and groups that interact with the business and have a vested interest in a company. a shareholder can be a stake holder but a stakeholder cant be shareholder

Question 12

What is CSR

Answer 12

Corporate social responcibility is the obligation of a bussines and the legal responsibilities to go above and beyond to help the wellbeing of employees, customers, shareholders, community and the enviroment

Question 13

What is an autocratic management style?

Answer 13

Manager tells staff what decisions have been made makes decisions without input of subordinates
is has direct communication, is useful with inexperienced staff and focuses on productivity and efficiency. shows lack of trust, centralised power and low motivaitonal and job satisfaction for employees.

Question 14

What is an persuasive management style?

Answer 14

Manager sells decisions made to staff spends time convincing subordinate of the decision. there is clear expectations, clear who is in charge and decisions are made quikly. but communication is still limited to top down, centralisation of deision making and low motivational and job satisfaction of employees.

Question 15

What is an consultative managment style?

Answer 15

Manager discusses with staff before making decisions engage subordinate in the decision making and empowers staff to contribute to problem solving. has a variety of ideas, emplyee involvement improves engagement and a higher degree of job satisfaction. but it is time consuming, hostility could come up due to overlooked ideas and consultation may no be suitable

Question 16

What is a participative managment style?

Answer 16

Manager joins with staff to make group decisions, manager and staff work together towards a solution or decision. it has open communicatino, a diversity of view points and reduced likehood of workplace disputes. But is time consuming, conflict arises from veiwpoints and some staff may reluctant to be involved.

Question 17

What are managment skills?

Answer 17

The abilitie or competencies that managers use to help them to complete the tasks that are necassary for the achievement of the bussiness objective

Question 18

List different management skills

Answer 18

Communicating
Delegating
Planning
Leading
Decision making
Interpersonal skills

Question 19

What is communicating?

Answer 19

The transfer of information from sender to reciever within and outside the business
Non verbial- body language, visual
Verbial- writeen ot oral
This can resolve conflict, can be time consuming and too much communication may result in information overload

Question 20

What is planning?

Answer 20

The ability to define the bussiness objective and determine methods or stratergies that will be used to achieve those objective
Levels of planning:
strategic- long term 2-5 years for market share or compititors
Tactical- medium term 1-2 years supports strategic plane, recourse allocation
Operational- short term up to 1 year dail/ weekly schedules

Question 21

Planning?

Answer 21

define objective (what needs to be achieved)
Analyse the enviroment
Develop alternative stratergies
Implement on alternative
Monitor and seek feedback

Question 22

What is leading?

Answer 22

the endeavour to influence or motivate people in the business to work to achieve the bussiness objectives
Model goo practice
Actively listen
Delegate
Reward staff for compliance
Transformational leader inspire or enthuses staff with a vision to commit to achieving business objectives

Question 23

What is delegating?

Answer 23

Transfer of authority and responsibility from manager to employee for the completion of specific tasks
-Manager retains accountabilty
-Clear communication of instruction required
-Enables staff to learn new skills
-Builds trust and mutual understanding
-Manager needs to provide support set deadlines and evaluate the task
Risk of misuse of new power

Question 24

What is decision making?

Answer 24

Identifying available option and choosing one course of action from the alternatives
Timeframes- group decision making takes longer but may result in more ideas
Risks- may prompts the need for quicker deciisons

Question 25

Decision making?

Answer 25

Develop objective and criteria
Outline facts
Identify allternatives solutions
Analyse alternatives
Choose one and implement

Question 26

What is interpersonal skills?

Answer 26

Ability to deal or liase with people and build relationships with staff
Identify and recognise perspectives of others
clear communication with staff
responsive to need to stafff
inspire and influence staff
Resolve conflict between staff

Question 27

What are elements of corporate culture?

Answer 27

Values and practices- these are the ways things are done in business
Symbols- these are the events or objects that are established to represent something the business beleives to be important
Rituals, rites and celebrations- these are the routine behavioural patterns in a business everyday life
Heroes or champions- sucessful employees who reflect its values and therefore act as an example for others

Question 28

Official Corporate culture

Answer 28

What the organisation states are its values and standards in corporate slogans or mission statements
-Uniforms
-Official plublications

Question 29

Real coporate culture

Answer 29

the shared values actually held by pepole in the organisation
Can be found in:
- Attitudes and behaviours of staff
-Style of dress and language used
-Management style
-Relationship between staff

Question 30

Benefits of positive culture?

Answer 30

-Employees percieve the business to be more positive personlised
-Employees should experience high morale and a positive attitude toward the business and therefore stay loyal which should reduce the lvel of staff turnover
-Improved morale of employees could also increase productivity
-Gain positive reputation as an employer of choice allowing the business to acttract talented and skilled employees

Question 31

Stratergies of building corporate culture?

Answer 31

Establish social gatherings
Managers act as role models upholding the business values
Communicate desired values to staff
Sufficient training for staff
Rewarding employees who exemplify appropriate values
Recruiting staff who fit in with the values of the business
Changing the prevailing management style
Changing the style of dress and language used in the workplace

Question 32

What is a goverment business enterprize

Answer 32

A Government owned organisation that operates under a business name and is owned by the goverment. The objectives are to provide essential service to community. the Government responsible for the debts and losses of the GBE