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Business Management Unit 3/4 > AOS1: Business Foundations > Flashcards

AOS1: Business Foundations Flashcards

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1
Q

Sole Trader

A

One owner, unlimited liability, retains all profits

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2
Q

Liability

A

Any loss or debts of the business

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3
Q

Advantages of a sole trader

A

Low cost, simple, complete control, no partner disputes

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4
Q

Disadvantages of a sole trader

A

Unlimited liability, burden of management, difficult to operate when sick, need to perform variety of tasks

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5
Q

Partnership

A

2-20 owners. All partners equally responsible for liability.

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6
Q

Advantages of a Partnership

A

Low startup cost, shared responsibilities, pooled funds

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7
Q

Disadvantages of a Partnership

A

Personal Unlimited liability for all debts, possibility of disputes

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8
Q

Private Limited Company

A

Has at least one shareholder, and a maximum of 50 non-employee shareholders.

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9
Q

Advantages of private limited company

A

Limited liability, easier to attract finance, easy transfer of ownership, perpetual succession, company tax rate lower

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10
Q

Disadvantages of private limited company

A

Cost of formation, company is taxed, public disclosure, inefficiences

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11
Q

Public Listed Company

A

Incorporated business with a minimum of five shareholders, and shares are trader on the ASX

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12
Q

Advantages of a public listed company

A

Can attract extra capital by issuing shares on the ASX, Easy transfer of ownership

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13
Q

Disadvantages of a public listed company

A

Highly complex business structure, significant establishment costs, requires accountability and compliance

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14
Q

Social Enterprise

A

Has the objective of fulfilling a social need and invests profit into a social need or back into the business

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15
Q

Advantages of a social enterprise

A

Can meet a demand that commercial businesses may not, meeting a social need may have a positive effect on market share

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16
Q

Disadvantages of a social enterprise

A

Difficulty in obtaining capital for startup, can be difficult to focus on business objectives and social objectives

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17
Q

Government Business Enterprise

A

Government owned and operated

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18
Q

Advantages of a government business enterprise

A

Can carry out business in areas that private companies would be hesitant to invest in, can give healthy competition to other businesses, can operate with some independence from the government

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19
Q

Disadvantages of a government business enterprise

A

Political interference in the day-to-day operation, inefficiencies, less accountability, heavily regulated

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20
Q

Examples of business objectives

A

To make profit, to increase market share, to improve efficiency, to improve effectiveness, to fulfil a market need, to fulfil a social need and to meet a shareholder expectations.

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21
Q

What are some business Stakeholders

A

Owners, managers, employees, customers, suppliers, general community

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22
Q

Company structures

A

A company structure is incorporated and is a sperate legal entity to an individual or individuals

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23
Q

Stakeholder Conflict

A

Different stakeholders have competing values or interest for the business

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24
Q

Social entrepreneur

A

A person who establishes an enterprise with the aim of solving a social problems or effecting social change

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25
Objectives
Statements of desired achievement that provide direction for the business
26
What is a stakeholder?
Someone that has a direct or vested interest in the activities of a business
27
Autocratic | Management Style
Manager tells staff what decisions have been made. -Highly centralized, communication from top down, no discussion.
28
Persuasive | Management Style
Manager makes decision than persuades workers of the benefits. -Decision making rests solely on manager, however employee may feel better about a decision because it is explained.
29
Consultative | Management Style
When the manager consults employees before making decisions. -Seeks input -Takes into account the opinions of team members
30
Participative | Management Style
Where the manager unites with staff to make decisions together -Decentralized decision making -two way communication -management ultimately retains control
31
Laissez-Faire | Management Style
**Employees assume total responsibility for workplace operations** -Approach problems and tasks in their own way -only constraint being budgets, timelines and goals
32
Skills
The **ability to do something well**, gained through training and experience
33
Communication | Management Skill
A **process of creating and exchanging information** between people that produces the required response.
34
Personal communication | Dot Point of Management Skill "Communication"
Sharing information between the manager and subordinates
35
Internal organisational communication | Dot Point of Management Skill "Communication"
Systems used to share with internal stakeholders such as employees
36
External operational communication | Dot Point of Management Skill "Communication"
37
Delegation | Management Skill
**Passing of authority** down the hierarchy to perform tasks or make decisions
38
Planning | Management Skill
Formalised decision-making process that is future-oriented
39
SWOT Analysis | Management Skill "Planning" Dot Point
An **assessment** of the internal **strengths** and **weaknesses** and the external **opportunities** and **threats** for a business in a given situation
40
Strategic Planning | Management Skill "Planning" Dot Point
**Long term planning** undertaken by senior management to achieve business objectives
41
Operational Planning | Management Skill "Planning" Dot Point
The **detailed, short term planning** undertaken by a business
42
Tactical Planning | Management Skill "Planning" Dot Point
Time frame is **medium term**. Undertaken by middle-level management.
43
Leading | Management Skill
The skill of a manager when **guiding workers towards achieving the goals of the business**
44
Decision-Making | Management Skill
A multistep approach **whereby a selection is made between a range of different alternatives**
45
Interpersonal Skills | Management Skills
Skills used every day to **communicate and interact with other people**, both individually and in groups
46
Corporate Culture | Corporate Culture
System of shared values and beliefs of people within a business
47
Official Corporate Culture | Corporate Culture
Formal written expression of values and beliefs desired by management
48
Real Corporate Culture | Corporate Culture
Actual practises and values that are actually held by the employees in a business
49
What are some strategies to develop positive corporate culture? | Corporate Culture
Creating mission, vision and values statements Establishing management structures Choice of management styles Implementing policies Business documentation and forms of communication People Physical environment and material symbols Stores, narratives and rituals
50
Benefits of Delegation | Dot point of Delegation
**Assists with smooth flow** of production, **acts as a time saver**, provides opportunity for **development and training**.
51
5 Step Process for Delegation | Dot point of Delegation
Analysis, Appointment, Briefing, Control, Apprasial.
52
5 Step Process for Planning
Set Goals, Gather info, establish promoting and restricting factors, develop action plan, evaluate and review
53
Details of Decision Making
Requires use of a **Systematic Approach** that is **evidence based**. Helps reduce **errors and bad decisions**, reflects the management style.
54
Best skills for Autocratic style
**High**: Planning, decision-making, communication
55
Best skills for Persuasive style
**High**: Planning, decision-making **Medium**: Communication, delegation, interpersonal
56
Best skills for Consultative style
**High**: Planning, decision-making, communication
57
Best skills for Participative style
**High**: Communication, interpersonal, leading **Medium**: Decision-making, delegating
58
Best skills for Laissez-Faire style
**High**: Communication, delegating, leading
59
60
Market Share
Market share is the business's percentage of total sales controlled by the business in a industry
61
Efficiency
The best use of resources in the production of goods and services
62
Effectiveness
How successful a business is at achieving its objectives
63
What are business owners concerned with? | Stakeholder conflict
Profit, market share, adherence to rules
64
What are Managers concerned with? | Stakeholder conflict
Set and achieve objectives, career development, fair remuneration, job satisfaction
65
What are employees concerned with? | Stakeholder conflict
Fair pay, safe workplace, career advancement, job satisfaction, secure job
66
What are customers concerned with? | Stakeholder conflict
Quality product, customer service, ethical and socially responsible business
67
What are suppliers concerned with? | Stakeholder conflict
Ensure that the business is profitable, paid promptly, long term supplier relationship
68
What is the general community concerned with? | Stakeholder conflict
Business to participate in the community, ethical business, socially responsible business
69
Advantages of Autocratic
Quick decisions, made by experienced leader, communication is direct
70
Advantages of Persuasive
Decision making is quick, suits high risk decisions
71
Advantages of Consultative
Variety of ideas, employee involvement, motivation and employee satisfaction
72
Advantages of Participative
Trust and faith in employees, morale increased, Open communication
73
Advantages of Laissez-Faire
Employee independence, motivation and satisfaction, creavity and innovation, teamwork
74
Disadvantages of Autocratic
Quick decision is not always the best, discourages teamwork and opinions, low motivation and satisfaction
75
Disadvantages of Persuasive
No input from workers, workers can still feel alienated, employee initiative and commitment overlooked
76
Disadvantages of Consultative
Empoyees may not understand, time-consuming, employees may not feel valued if their ideas aren't used
77
Disadvantages of Participative
Can give rise to employee conflict, time consuming and lack of contribution by all employees
78
Disadvantages of Laissez-Faire
Lack of guidance can cause some employees to have a lack of direction, does not suit untrained employees or those who need structure
79
How is the appropriateness of management styles measured?
**Nature** of the task, **time**, **experience** of the employees and the manager's **preference**.
80

Business Management Unit 3/4 (2 decks)

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