3.2 KEY TERMS

Question 1

management

Answer 1

the process of coordinating and directing the activities of an organisation to achieve its goals
efficiently through planning, organising and controlling resources.

Question 2

leadership

Answer 2

the ability to inspire, influence and guide others towards achieving a common goal or vision

Question 3

autocratic

Answer 3

a leadership style where decisions are made by a single individual with little or no input from subordinates, often characterised by strict control and centralised authority.

Question 4

paternalistic

Answer 4

a leadership style where the leader acts as a father figure, making decisions for the benefit of employees while expecting loyalty and obedience in return.

Question 5

democratic

Answer 5

a leadership style that encourages participation, collaboration and decision-making by team members, promoting equality and shared responsibility.

Question 6

laissez-faire

Answer 6

a leadership style characterised by minimal intervention and a hands-off approach, where
individuals or teams are given freedom to make their own decisions and manage their own
tasks.

Question 7

opportunity cost

Answer 7

the value of the next best alternative that must be forgone when a decision is made to
allocate resources to a particular option.

Question 8

stakeholder

Answer 8

individuals or groups who have an interest, involvement, or are affected by the activities and
outcomes of a business, including employees, customers, shareholders and the community.