Business Management Flashcards
(175 cards)
1
Q
Sole trader
A
A sole trader is a business structure owned and operated by a single person
2
Q
Unincorporated
A
Is an owner and business being viewed as a single legal entity.
3
Q
Unlimited liability
A
Is the complete responsibility an owner has for a business’s debts. Debts are the sums of money a business owes to banks, suppliers or even customers.
4
Q
Proprietor
A
Is the owner of a business.
5
Q
Profits
A
Are the amount remaining after all expenses are deducted from a business’s income.
6
Q
Personal income tax
A
Is a portion of an individual’s earnings that is paid to a government for public services such as roads, schools, and hospitals.
7
Q
Company tax
A
Is the portion of profits a business pays to the government for public services such as the police, courts and fire services. Incorporated is a business being established as a separate legal entity from the owners.
7
Q
Company tax
A
Is the portion of profits a business pays to the government for public services such as the police, courts and fire services. Incorporated is a business being established as a separate legal entity from the owners.
8
Q
Director
A
Is the manager of a particular area of a company often selected for their expertise.
9
Q
Shareholders
A
Are part-owners of a business as they purchase company shares.
10
Q
Limited liability
A
Is the protection of a shareholder’s personal assets against any business debt. Shares are the units of ownership of a business that it sells to raise funds.
11
Q
Partnerships
A
Are suitable for two to 20 owners of small to medium businesses
12
Q
Private limited companies
A
Are suitable to raise funds and grow the business while maintaining control
13
Q
Public listed companies
A
Are suitable to raise large amount of funds publicly
14
Q
Social enterprises
A
Are suitable for businesses that focus on improving a community or environmental cause.
15
Q
GBEs (Government Business Enterprises)
A
Are a unique type of business that can only be designated by the government
16
Q
Open market
A
Is a public arena where people can buy and sell items of commercial value freely.
17
Q
Australian Securities Exchange
A
Is the electronic market where Australian public company shares are bought and sold.
18
Q
Share price
A
Is the value of a single share of a company that it can be bought or sold for.
19
Q
Dividends
A
Are regular sums of money paid out to shareholders from a business’s profit
20
Q
Business Objectives
A
Are the goals a business intends to achieve
21
Q
Revenue
A
Is the amount of money a business makes from its normal business activities. Expenses are the costs of running a business.
22
Q
Market share
A
Is a business’s percentage of total sales within an industry.
23
Q
Make a profit
A
Profit is essential for any business to survive and grow. By generating more revenue than expenses, a business earns a profit which can then be distributed to owners and shareholders.
24
Increase market share
A business typically wants to increase its market share to become more competitive within an industry. Increased sales usually means a business can also increase their profits.
25
Meet shareholder expectations
Shareholders are people who have invested a sum of their own money into a business by purchasing company shares. As part owners of a business, shareholders expect a return on their investment.
26
Fulfil a market need
A business fulfils a market need by providing products and services which meet the desires of a group of customers with similar needs.
27
Fulfil a social need
A business fulfils a social need by improving the community and environment through its business activities.
28
Vested interest
Is a strong connection to a business that can lead to personal gain or benefit.
29
Internal stakeholders
Are groups who have a direct financial share or are employed by the business including owners, board of directors, investors, shareholders, and employees
30
External stakeholders
Are groups that are outside a business but are concerned or affected by its activities including customers, suppliers, and the general community.
31
Ethically
Is the alignment to current moral standards.
32
Wages
Are regular payments of money earned by employees for work or services completed, typically paid on a weekly or monthly basis.
33
Conditions
Are the terms that an employee and employer agree to including job responsibilities, hours of work, dress code and leave entitlements.
34
Corporate social responsibility (CSR)
Is the ethical conduct of a business beyond legal obligations to improve the social, economic and environmental outcomes of stakeholders.
35
Operations Area of Management
Produces the goods or services that a business sells
| to customers.
35
Operations Area of Management
Produces the goods or services that a business sells
| to customers.
36
Human Resources Area of Management
Establishes and manages the relationship the
| business has with its employees, including their hiring, training and termination.
37
Sales And Marketing Area of Management
Promotes and sells the business’s goods
| or services to customers.
38
Finance Area of Management
Handles the monetary requirements of a business.
39
Technology Support Area of Management
Installs automated equipment, machinery
and devices within the business and provides assistance to employees on the use of these
technologies.
40
Corporate Culture
Is the shared values and behaviours practised by managers and employees within a business.
41
Official Corporate Culture
Is the shared values and beliefs desired by a business and expressed through elements such as formal rules and symbols.
42
Real Corporate Culture
Is the shared values and behaviours that are actually practised by
employees and managers and expressed through informal rules and habits.
43
Policies
Are the formal and written rules of a business.
44
Mission statement
is a formal
summary of the core focus of a
business apart from profit.
45
Vision statement
is a formal
summary of a business’s longer
term objective
46
Rituals
are practices within a business that occur regularly.
47
Communication flow
is the direction of the transfer of
information between managers
and employees.
48
Decision making
is deciding a course of action for a business
| from a set of alternatives.
49
Autocratic management style
is a manager making decisions and directing employees without any input from them
50
Centralized control
is one person
having concentrated authority to
make decisions
51
Persuasive management style
is a manager making decisions and communicating the reasons for those decisions to employees without their input
52
Consultative management style
is a manager seeking input from employees on business decisions but making the final decision themselves.
53
Participative management style
is a manager communicating and discussing
| information with employees in order to make decisions together.
54
Laissez-faire management style
is a manager communicating business objectives to
| employees and allowing them to make decisions independently.
55
Planning
is the manager’s ability to establish objectives and strategies to achieve them.
56
Decision-making
is the manager’s ability to determine a suitable course of action for the business from a range of alternatives.
57
franchise
```
is a business model
that licenses the business’s name,
product and procedures to people
outside the business, also known
as franchisees. Franchisees pay a
fee to the business in return for
an established brand, proven
business methods and a loyal
customer base.
```
58
Communicating
is the manager’s ability to clearly exchange information with employees
and relevant stakeholders.
59
Communicating
is the manager’s ability to clearly exchange information with employees
and relevant stakeholders.
60
Delegating
is the manager transferring authority and responsibility to employees for
business tasks
61
Franchisees
```
are individuals who
become business owners by
purchasing the right to trade using
another established business’s
brand, products and processes.
```
62
Interpersonal
skills are the manager’s ability to interact positively with employees to create and maintain professional relationships.
63
Leading
is the manager’s ability to motivate employees to work towards business
objectives
64
Vision
```
is the aspirational purpose
of a business for owners, managers
and employees. Examples include:
Disney - ‘to make people happy’
Instagram - ‘capture and share the
world’s moments’
```
65
Motivation
is a need or desire that directs, energises, and sustains a person’s behavior.
66
living wage
is the minimum
income an employee needs to
afford basic shelter, food, and other
necessities.
67
Physiological needs
are the basic requirements for human survival, such as food, water and shelter.
68
Safety and security needs
are the desires for protection from dangerous or threatening environments.
69
OH&S regulations
```
are the
occupational health and safety
rules and laws that aim to protect
the wellbeing of employees and
the public.
```
70
Job security
is the likelihood of an
| employee keeping their job
71
Social needs
are the desires for a sense of belonging and friendship among groups
72
Esteem needs
are the desires to feel important, valuable and respected.
73
Self-actualisation
is the realization of one’s full potential through creativity and personal growth
74
Intrinsic motivation
is a drive that comes from within an individual
75
Drive to acquire
is the desire to achieve rewards and high status
76
financial reward
is a monetary
payment to recognise performance
which achieves business goals.
77
non-financial reward
```
is
recognition of performance which
achieves business goals but is
not in the form of a monetary
payment
```
78
Drive to bond
is the desire to participate in social interactions and feel a sense
of belonging.
79
Drive to learn
is the desire to gain knowledge, skills and experience.
80
Drive to defend
is the desire to protect personal security as well as the values of a
business.
81
Locke and Latham’s goal setting theory
The goal setting theory is a motivation theory which states that employees strive to achieve
well defined objectives.
The goal setting theory states that managers can use goals that fulfil five key principles to
motivate employees within the workplace.
82
Production quota
is a goal for how
many products are to be made
within a specific time period.
83
Performance related pay as a motivation strategy
is a financial reward for reaching or
| exceeding a set business goal.
84
Remuneration
is the money paid
to an employee by an employer in
exchange for completing work tasks.
85
Pay rise
is a permanent increase
in an employee’s salary or hourly
wage rate.
86
Bonus
is a one-off payment
made for meeting a set objective.
It is provided in addition to an
employee’s regular salary.
87
Commission
```
is a payment provided
to an employee for selling a good
or service. It is usually paid as a
percentage of the price of the good
or service being sold
```
88
Career advancement as a motivation strategy
is the upwards progression of an
| employee’s job position.
89
Investment in training as a motivation strategy
is allocating resources to improve
| employees’ skills and knowledge.
90
Mentoring
is a senior employee
assisting a junior employee in
developing the skills and knowledge
needed for their work.
91
Support as a motivation strategy
is providing employees with any assistance that
| improves their satisfaction at work
92
Sanction as a motivation strategy
is penalizing employees for poor performance or
| breaching business policies.
93
On-the-job training
is employees improving their knowledge and skills within the workplace
94
Job shadowing
```
is following
and observing an experienced
employee for a period of time
to understand how they
perform their role.
```
95
Off-the-job training
is employees improving their knowledge and skills in a location
external to the business.
96
Management by objectives
are both managers and employees collaboratively setting individual employee goals that contribute to the achievement of wider business objectives
97
Performance appraisals
is a manager assessing the performance of an employee against a range of criteria, providing feedback, and establishing plans for improvement in the future
98
Self-evaluation
is an employee assessing their individual performance against a set criteria.
99
Employee observation
is a range of employees from different levels of authority assessing
another employee's performance against a set criteria
100
Entitlement issues
are legal
obligations an employer owes
to employees following the
termination of their employment.
100
Transition issues
are social and
ethical concerns a manager
can consider when terminating
employment
101
Termination
is ending the
employment contract between an
employee and the business
102
Retirement
is an individual deciding to leave the workforce as they no longer wish to work
103
Redundancy
is an employee no longer working for a business because there is insufficient
work or their job no longer exists
104
Exit interviews
```
are discussions
held between an employer and
the leaving employee and are
used to identify the reasons for an
employee deciding to no longer be
a part of the business.
```
105
Unfair dismissal
is an employee
being dismissed for an invalid or
unjust reason.
106
Resignation
is an employee voluntarily terminating their own employment, usually to take
another job position elsewhere.
107
Dismissal
is the involuntary termination of an employee who fails to meet required standards
or displays unacceptable or unlawful behaviour.
108
Annual leave i
```
is paid time off work
that is provided to an employee
when they are not working.
Businesses often have a limit to
the amount of leave they provide
employees with.
```
109
Long service leave
is an extended
period of paid leave that is granted
to an employee after a sustained
period of work at a single business.
110
Workplace relations
```
is the
interactions between employers and
employees, or their representatives,
to achieve wages and conditions
that satisfy both the business
and employees
```
111
Human resource managers
are individuals who coordinate the relationship between
| employees and management within businesses.
112
Employer associations
are advisory bodies who assist employers in understanding and
upholding legal business obligations
113
Unions
are organisations composed of individuals who represent and speak on
behalf of employees in a particular industry to protect and improve their wages and
working conditions.
114
The Fair Work Commission (FWC)
is Australia’s independent workplace relations
| tribunal and has a range of responsibilities outlined by the Fair Work Act.
115
Employment contracts
are
legal documents which outline
the wages and conditions of
employees within a business
116
National employment standards
| NES
are minimum wages and
| conditions set out by the FWC.
117
awards
is a legal document which outlines the minimum wages and conditions of work
across an entire industry
118
Collective bargaining
```
is the
process of negotiation between
employers and employees, or their
chosen representatives, to reach an
agreement regarding their wages
and conditions of employment.
```
119
Negotiation
is the process of two
or more parties coming to a
mutual agreement
120
agreement
is a legal document which outlines the wages and conditions of employees
and is applicable to a particular business or group of businesses.
121
dispute
is a conflict between
workplace participants as a result
of a disagreement
122
grievance procedure
is a formalised set of steps that employees and employers can
follow to resolve workplace disputes.
123
Mediation
is an impartial third party facilitating the discussion between disputing parties
to help each side of the conflict reach a resolution themselves
124
legally binding decision
```
is
a judgement that requires and
prohibits certain actions of parties
to a decision which is enforceable
by law. Failure to follow this decision
can result in legal consequences
```
125
Arbitration
is an independent third party hearing arguments from both disputing parties
and making a legally binding decision to resolve a conflict.
126
Efficiency
is how productively a business uses its resources when producing a good or service.
127
Productivity
```
is the number
of goods or services that are
produced compared to the
number of resources used in
the production process.
```
128
Effectiveness
is the extent to which a business achieves its stated objectives
129
Inputs
are the resources used by a business to produce goods and services
129
Inputs
are the resources used by a business to produce goods and services
130
Raw materials
are unprocessed
substances used to produce goods
and services
131
Processes
are the actions performed by a business to transform inputs into outputs.
132
Outputs
are the final goods or services produced as a result of a business’s operations
system which are delivered or provided to customers.
133
Manufacturing businesses
use
raw materials and resources to
produce a finished physical good.
134
Service businesses
provide intangible products, usually with
| the use of specialized expertise
135
Tangible
is the ability to be touched.
136
Capital intensive
is using a high degree of machinery and
equipment during the production
process
137
Inventory
are resources and
| finished goods held as stock
138
Standardised goods
are goods that are produced consistently and are
| virtually identical to one another.
139
Intangible
is something that
| cannot be touched.
140
Labour intensive
is having a high
degree of employee involvement
during the production process
141
Computer-aided design (CAD)
is a digital design tool that enables businesses to generate and
modify technical illustrations of a product.
142
Computer-aided manufacturing (CAM)
is a software used to control and direct the
| production process by controlling machinery and equipment through a computer.
143
Automated production lines
are machinery and equipment which are arranged in a sequence, and the product is developed as it proceeds through each step
144
Website development
is the creation and improvement of online web pages controlled by a business that customers can use to discover information about the business and purchase their goods or services at any time.
145
Forecasting
is a materials planning tool that predicts customer demand for an upcoming period using past data and market trends
146
Stock
is the materials stored for
production or goods stored for
sale.
147
A master production schedule (MPS)
is a plan that outlines what a business intends to
| produce, in its specific quantities, within a set period of time.
148
Materials requirement planning (MRP)
is a process that itemises the types and quantities
| of materials required to meet production targets set out in the master production schedule.
149
Just in time (JIT)
is an inventory control approach that delivers the correct type and
quantity of materials as soon as they are needed for production.
150
Quality
is a good or service’s ability
| to satisfy a customer’s needs
151
Quality control
is inspections at various stages of the production process to ensure
products meet designated standards and unsatisfactory products are discarded
152
Reactive
is responding to
a situation after something
has occurred
153
Proactive
is performing actions
to prevent problems before they
occur
154
Quality assurance
is a business achieving a certified standard of quality in its production after an independent body assesses its operations system.
155
Quality circles
are small groups of
employees who meet to discuss
and create solutions to problems
related to quality
156
Total quality management (TQM)
is a holistic approach where all employees are committed to continuously improving a business’s operations system to enhance the quality for customers.
157
Lean management
is the process of systematically reducing waste in all areas of production
while improving customer value.
157
Waste
is any material or resource
that is discarded because it
cannot be further used in the
production process.
158
Waste minimisation
is the process of reducing the amount of unused material, time or
labour within a business
159
Zero defects
is preventing defects from occurring in the production process
160
Supply chain management
is the coordination of the flow of goods and services from raw materials to delivering final products to customers.
161
Wholesalers
are businesses that
store and distribute manufactured
goods to retailers.
162
Retailers
are businesses that
purchase goods from a wholesaler
and resell them to customers.
163
Global sourcing of inputs
is acquiring raw materials or resources from overseas suppliers.
164
Quotas
```
are the limitations on the
number of a particular product that
can be imported or exported into a
country. Quotas are usually set by
a country’s government
```
165
Tariffs
are taxes that have to be
paid to a government for particular
imports or exports.
166
Global outsourcing
is transferring specific business activities to an external business in an
overseas country
167
Overseas manufacturing
is producing goods or services in a location outside of a business’s headquarters countr
168
Outsource
is the transfer of
specific business activities to an
external business.
169
Corporate social responsibility (CSR)
is the ethical conduct of a business beyond legal
| obligations to improve the social, economic and environmental outcomes of stakeholders
170
Environmental sustainability
is ensuring that natural resources
are not permanently depleted
or damages
