Aims And Objectives and organisation of a business

Question 0

What is an objective?

Answer 0

Steps that will enable a business to reach their aims

Question 1

What is an aim?

Answer 1

It’s an overall target for a business

Question 2

What do aims and objectives need to be?

Answer 2

Smart

Question 3

What is a sole trader?

Answer 3

Small businesses owned by one person

Question 4

What are the advantages of a sole trader?

Answer 4

Owner has complete control, so aims and objectives can reflect their own person interests
No pressure of working with someone else
Independence

Question 5

Disadvantages of a sole trader?

Answer 5

Harder to raise finance
May have to work very long hours
Unlimited liability- owner responsible for all business debts

Question 6

How is the capital raised for a sole trader?

Answer 6

Owner taking out a bank loan or by putting savings into a business

Question 7

What is a partnership?

Answer 7

These are are businesses owned by 2 or more people.

Question 8

Advantages of a partnership?

Answer 8

Able to raise more capital

Different partners will have different specialisms

Question 9

Disadvantages of a partnership?

Answer 9

Arguments between owners

Unlimited liability- owners responsible for all business debts

Question 10

How is the capital raised for a partnership?

Answer 10

Owners taking out a bank loan or by putting savings into the business

Question 11

What is a private limited company- (ltd)

Answer 11

Usually owned by a small number of shareholders, often two people

Question 12

Advantages of a private limited company (Ltd)

Answer 12

Limited liability- if the business goes bust the owners will not be personally responsible for debts
Able to raise more capital

Question 13

Disadvantages of a private limited company (ltd)

Answer 13

Arguments between owners
Have to produce yearly accounts- done properly (audit)
Lots of paperwork

Question 14

What is a public limited company?

Answer 14

Plcs sell shares on the stock market to raise their capital. The company will then be owned by shareholders, who are usually members of the public. They all hag e a chance to say how the business is run. They have to register with the company house

Question 15

Advantages of a public limited company (Plc)

Answer 15

Limited liability, lots of money invested from shareholders

Question 16

Disadvantages of a public limited company (Plc)

Answer 16

Takes lots of time and money to set up
Complex paperwork
Meetings take time
Arguments between shareholders.

Question 17

What is the public sector?

Answer 17

Government owned and run businesses. These include hospitals, schools and local councils. Public sector organisations will often have very different aims and objectives from private sector businesses

Question 18

What happens during the production department in a business?

Answer 18

A sector of the company that is responsible for manufacturing products or services

Question 19

What does the human resources department do in a business?

Answer 19

They are responsible for recruiting, screening, interviewing and placing workers. They may also handle employee relations, payroll and benefits and training. Human resources managers plan, direct and coordinate the administrative functions of a organisation

Question 20

What does the marketing department do in a business?

Answer 20

They promote the business and drives sales of its products or devices, it provides the necessary research to identify your target Audi nce, hugely investigate how to keep sales high

Question 21

What does the finance department do in a business?

Answer 21

It’s the part of an organisation that manages the money, the business functions of a finance department typically include planning, organising, auditing, accounting for and controlling it’s company’s finances. The finance department also usually produces the company’s financial statements

Question 22

What does the research and development department of a business do?

Answer 22

It’s responsible for innovations in design, products and style. This department is responsible for creasing new products to keep the company a step ahead of the competitions. They also improve existing consumer products and to explore new ways of producing them

Question 23

What does the administration department in a business do?

Answer 23

Oversees support iterations of a business or organisation. Also know as an office manager, this is the person that keeps the business running smoothly. They may provide managerial support to a particular division or department or to the entire company. They keep track of everything that occurs in a business

Question 24

What does the ICT department do in a business?

Answer 24

They ensure that the company's ICT systems Are working at their best. They will develop systems that will allow the company to expand

Question 25

What is an organisational structure used to show?

Answer 25

It's used to illustrate the way in which the business is divided into separate functions and different job roles that are carried out

Question 26

A hierachy shows..

Answer 26

Channels of communication The chain of command Span of control How big the business is

Question 27

What does it mean if a business has a tall hierarchical structure?

Answer 27

``` Large business with lots of employees Solid communications- people only deal with the employees directly above and below Decision making is very formal Higher cost if management Clear promotional routes Each person has a distinct role ```

Question 28

What does it mean if the hierarchy is flat?

Answer 28

Suits a smaller business- one manager Communications are good because the manager is in contact with all employees Business controlled less formally Lower wage bills due to fewer managers Management responsibility will lie with one person which could be stressful at times

Question 29

What does it mean if a business has been centralised? What are the advantages and disadvantages?

Answer 29

It is the concentration of management and decision making power at the top of the hierarchy, the location of all of most of the main departments and managers at one facility. Advantages-senior managers have more control The use of standardised procedures can result in cost savings Deductions can be made to benefit the whole organisation Strong leadership Disadvantages- delay in work No loyalty Lack of secrecy

Question 30

What is decentralisation? Advantages and dis?

Answer 30

Distribute manager roles and authority among several local authorities and sections within a business. The desicions are made across the business not just by managers ``` Ad- distributions of high stress Increased motivation Greater efficency More communication Better coordination ``` Dis-more costly No specialisation Hard to distribute work No clear manager

Question 31

What is a manager?

Answer 31

A manager is someone who has decision making power, they can decide how resources are allocated in the business and make priorities for the future direction of the business

Question 32

What is a supervisor?

Answer 32

A supervisors is someone who oversees the work of a group of people. They may be in charge of a small team or department

Question 33

What is an operative?

Answer 33

An operative is somebody who undertakes the day to day work of the business to produce the good or service