Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

exam business management > business foundations > Flashcards

business foundations Flashcards

(56 cards)

Start Studying
1
Q

business

A

any activity conducted by an individual or individuals to produce and sell goods and services that satisfy the needs of society, as well as make a profit.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

business structure

A

the way a business is legally organised.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

sole trader

A

a business that has one person who owns and runs the business.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

advantages of sole trader

A

advantages:
- low cost of entry
- no partner disputes
- profit is taxed as income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

disadvantages of sole trader

A

disadvantages:
- unlimited liability for business debts
- difficulty in raising finance for expansion
- burden of management

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

partnership

A

a business that has between two and twenty owners.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

advantages of partnership

A

advantages:
- low start up cost
- shared responsibility and workload
- minimal government regulation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

disadvantages of partnership

A

disadvantages:
- liability for all debts including partner debts even beforwe the partnership has begun
- possibility of disputes
- personal unlimited liability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

private limited company

A

a company structure where they have at least one shareholder and a maximum of 50 non employee shareholders. Must have at least one director.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

advantages of private limited company

A

advantages:
- easy to transfer ownership
- limited liability
- long life / perpertual succession (company is not lost due to death, disability or retirement)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

disadvantages of private limited company

A

disadvantages:
- cost of formation is more expensive than a sole trader or partnership
- company is taxed on any profits and dividends
- public disclosure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

public listed company

A

an incorporated business with a minimum of one shareholder (no max) and whose shares are openly traded on the Australian Securities Exchange.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

advantages of public listed company

A

advantages:
- minimum one shareholder, no max
- large in size
- attracts extra capital

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

disadvantages of public listed company

A

disadvantages:
- requirement to provide information when selling shares for the first time
- requirement of min 3 directord (must live in AUS)
- publish financial accounts each year in the annual report

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

government business enterprise

A

a type of business that is government owned and operated.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

advantages of government business enterprise

A

advantages:
- able to carry out government policies, delivering community services in areas where private sector businesses might hesitate to invest
- provision of healthy competition to businesses operating in the private sector - can lead to lower prices in markets where GBEs are competing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

disadvantages of government business enterprise

A

disadvantages:
- political interference in day to day operations
- can be less accountability within GBEs resulting in reduced productivity
- inefficiencies can be caused by the excessive regulation or rigid conformity to rules

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

social enterprise

A

a type of business that produces goods and services for the market but operates with the primary objective of fulfilling a social need.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

advantages of social enterprise

A

advantages:
- can open up new markets - meet needs that commerical businesses choose not to
- meeting social needs can have a positive effect on profit and market share

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

disadvantages of social enterprise

A

disadvantages:
- difficulty in obtaining capital to start the business
- significant operating costs
- can be difficult to focus on social and financial objectives

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

business objectives

A

a desired outcome or specific result that a business tends to achieve.

  • to make a profit
  • to increase market share
  • to improve efficiency
  • to improve effectiveness
  • to fulfill a market need
  • to fulfill a social need
  • to meet shareholder expectations
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

stakeholders

A

the people and the groups that interact with the business in some way and have a vested interest in its activities.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

owner

Study These Flashcards
A

individual who controls the operational and financial aspects of a business.

  • want the business to make a profit
  • want the business to conduct itself in a socially responsible manner
24
Q

manager

Study These Flashcards
A

an individual who has the responsibility of running a profitable or successful business by achieving the objectives of the business.

  • want the business to perform financially and in return, expect to be fairly remunerated
  • want the business to be sociallt responsible as it is more likely to lead to increased sales
  • satisfy as many stakeholders as possible
25
employee
an individual who works for a business and are expected to be paid fairly, trained properly and treated ethically in return for their contribution to production. - expect to be paid fairly, trained properly... - paid promptly and in full
26
customers
the people who purchase goods and services from the business, expecting high quality at competitive prices. - expect to purchase quality prodcuts at reasonable prices and to receive high levels of service - becoming increasingly aware of socially responsible businesses and will purchase products from businesses that are known for acting in a socially responsible manner
27
supplier
businesses or individuals who provide materials and other resources to a business so that it can conduct its operations. - provide quality materials delivered reliably in the right quantities at the right time - expects to be paid promptly and in full
28
general community
the people with common interests living in a particular area. - expect the business to give back to society - expect businesses to show concern for future welfare through own employment within businesses - expect business to show concern for the environment
29
conflicting interests between employees and owners
employees require safe working conditions and reasonable wages, but this may reduce the business' profit and dividends to owners
30
conflicting interests between management and customers
management could attempt to maintain profit and a high divided to satisfy shareholders by raising prices of products, however, this will upset customers who expect reasonably high prices
31
conflicting interests between suppliers and the general community
suppliers expect to be paid fairly and promptly, but they might reduce costs by using unethical or socially irresponsible practices, which can upset members of the community
32
conflicting interests between management and suppliers
management wishes to keep costs down to imrpove profit but suppliers providing ethical materials require higher prices to cover their costs
33
corporate social responsibility
the obligations a business has over and above its legal responsibilities to the wellbeing of employees, customers, shareholders, the community and the environment. - goal - resources - sustainability - sincerity - long term - market - responsibility - ethics
34
competitive advantage
a firm, industry or economy having a lower price structure than its rivals, unique product quality range or flexibility in adapting to new trends in the market.
35
management style
the behaviour and attitude of the manager when making decisions, when directing and motivating staff and when implementing plans to achieve business objectives.
36
autocratic management style
one where the manager tends to make all the decisions, dictating work methods, limiting employee knowledge about what needs to be done and frequently checking on employee performance.
37
advantages of autocratic management style
advantages: - control is centralised at the top management level so time is used efficiently and problems are dealt with quickly because there is no discussion - peformance is monitored
38
disadvantages of autocratic management style
disadvantages: - no employee input - one way communication - conflict for manager approval can lead to disagreements and tension within the workplace
39
persuasive management style
one where the manager attempts to convince employees that the management's way is right.
40
advantages of persuasive management style
advantages: - managers can gain some turst and support through persuasion - some acceptance of negative situations - isntructions and explanations remain clear and constant
41
disadvantages of persuasive management style
disadvantages: - communication is poor and limited to a top to bottom one way sistem - employees are still fustrated as they are denied full participation in decision making process
42
consultative management style
one where the manager recognises the importance of good personal relationships among employees and consults with staff on certain issues before making a decision.
43
advantages of consultative management style
advantages: - asking for suggestions allow for a greater variety of ideas, improving quality of management decisions - when decisions are discussed and fine tuned before implementation, tasks are completed more efficiently with better results
44
disadvantages of consultative management style
disadvantages: - time consuming as consulting relevant employees slow the process - inconsistency with decisions made can result in staff uncertainty and confusion with regards to their role - a number of ideas are bound to be ignored or overlooked in the final decision which can cause conflict or resentment
45
participative management style
one where the manage not only consults with employees but also shares decision making authority with subordinates.
46
advantages of participative management style
advantages: - positive employer employee relationship as there is reduced likelihood of industrial disputes - employees have greater opportunity to acquire more skills - high level of trust resulting in improved employee performance
47
disadvantages of participative management style
disadvantages: - time consuming to consider differing views - quality of decisions made may suffer due to compromises made - not all employees may want to contribute
48
laissez faire management style
one were employees assume total responsibility for and control of workplace operations.
49
advantages of laissez faire management style
advantages: - employees feel ownership which can promote outstanding results - communicationis completely open and ideas are both discussed and shared
50
disadvantages of lassiez faire management style
disadvantages: - complete loss of control by management - can breed personal conflicts where individuals do not cooperate or wish to implement only their own ideas - focus on meeting business objectives may be overlooked
51
factors influencing management style
- nature of the task -> task difficulty - time -> time frame, deadline allocated for task - experience of employees -> skill level of workers in completing task - preference of manager -> manager's characteristics such as experience, values, beliefs, personality, skills
52
contingency management theory
the need for flexibility and the adaption of management stles to suit the situation.
53
management skills
the abilities or competencies that managers use to achieve business objectives. - planning -> manager's ability to establish objectives - decision making -> manager's ability to determine a suitable course or action for the business from a range of alternatives. - communication -> manager's ability to clearly exchange information with employees and relevant stakeholders. - interpersonal skills -> manager's ability to interact positively with employees to create and maintain professional relationships. - delegation -> manager transferring authority and responsibility to employees for business tasks. - leadership -> manager's ability to motivate employees to work towards business objectives.
54
corporate culture
the values, ideas, expectations and beliefs shared by members of the business.
55
real corporate culture
shared values and behaviours that are actually practised by employees and managers and expressed through informal rules and habits. e.g. hiring, dress code, work layout, celebrations, rituals, management style
56
official corporate culture
shared values and beliefs desired by a business and expressed through elements such as formal rules or symbols. e.g. vision statement, mission statement, policies, symbols, uniform

exam business management (5 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions