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Business unit 3/4 > chapter 01 > Flashcards

chapter 01 Flashcards

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1
Q

What is a sole trader?

A

A business structure that is owned and operated by one individual

Sole traders have unlimited liability.

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2
Q

What is unlimited liability?

A

A situation where the owner and business are considered the same legal entity, putting the owner’s assets at risk.

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3
Q

What is one advantage of being a sole trader?

A

The owner has full control and decision-making power.

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4
Q

What is a disadvantage of being a sole trader?

A

Unlimited liability puts the owner’s assets at risk.

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5
Q

What is a partnership?

A

A business structure that is owned by 2 to 20 owners.

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6
Q

What is a partnership agreement?

A

A document signed by all partners detailing partner information, profit distribution, and responsibilities.

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7
Q

What is one advantage of a partnership?

A

Financial and legal risks are shared between the partners.

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8
Q

What is one disadvantage of a partnership?

A

Conflicts may arise due to shared decision-making.

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9
Q

What is a private limited company?

A

An incorporated business structure that has one owner and a maximum of 20 shareholders.

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10
Q

What is a key feature of a private limited company?

A

Shareholders are specifically selected and approved by the board of directors.

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11
Q

What is one advantage of a private limited company?

A

Limited liability for shareholders.

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12
Q

What is one disadvantage of a private limited company?

A

Complex reporting requirements such as annual reports.

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13
Q

What is a public listed company?

A

An incorporated business structure with unlimited shareholders that lists and sells its shares on ASX.

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14
Q

What does ‘Ltd.’ signify in a company name?

A

It represents the limited liability feature of a public company.

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15
Q

What is one advantage of a public listed company?

A

Shareholders have limited liability.

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16
Q

What is one disadvantage of a public listed company?

A

Expensive to set up and operate.

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17
Q

What is a social enterprise?

A

A business structure that aims to fulfill a social or environmental need by selling goods or services.

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18
Q

What is a requirement for a social enterprise?

A

Must contribute at least 50% of its profits towards its social or environmental objectives.

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19
Q

What is one advantage of a social enterprise?

A

The community benefits from the business activities.

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20
Q

What is one disadvantage of a social enterprise?

A

Difficult to balance financial and social objectives.

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21
Q

What is a Government Business Enterprise (GBE)?

A

A business that is owned and operated by the government.

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22
Q

What is one advantage of a GBE?

A

Delivers goods and services that help the community.

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23
Q

What is one disadvantage of a GBE?

A

Government interference can change the direction of the business.

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24
Q

What are business objectives?

A

Goals that a business intends to achieve.

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25
What is profit?
Total revenue earned minus total expenses incurred.
26
What is market share?
The business's percentage of total sales within the industry.
27
What is one strategy to increase market share?
Offer lower prices to increase sales.
28
What is a capital gain?
Selling company shares at a higher price than the purchase price.
29
What are dividends?
Profit shared among shareholders based on the number of shares owned.
30
What does it mean to fulfill a market need?
Addressing customer needs that are currently unmet.
31
What is efficiency in a business context?
How productively a business uses its resources.
32
What is effectiveness in a business context?
The extent to which a business achieves its stated objectives.
33
What are stakeholders?
Individuals, groups, or organizations with a vested interest in a business.
34
What is the role of owners in a business?
Individuals who establish, invest, and share in the profits of the business.
35
What is the role of managers in a business?
Individuals who oversee and control employees to achieve business objectives.
36
What is the role of customers in a business?
Individuals or groups purchasing and utilizing the business's goods and services.
37
What is the role of suppliers in a business?
Individuals or groups that provide raw materials to businesses.
38
What is the general community's role in relation to a business?
Individuals and groups impacted by business operations, even if they do not purchase products.
39
What is autocratic management style?
A style where the manager makes decisions without employee input.
40
What is one advantage of autocratic management?
Decision-making power lies with management.
41
What is one disadvantage of autocratic management?
Low employee motivation can lead to increased sick leave.
42
What is persuasive management style?
A style where the manager makes decisions and communicates reasons to employees without input.
43
What is consultative management style?
A style where the manager seeks input from employees but makes the final decision.
44
What is participative management style?
A style involving sharing information with employees to participate in decision-making.
45
What is laissez-faire management style?
A style where the manager communicates objectives and gives employees freedom to make independent decisions.
46
What is one appropriate situation for autocratic management style?
During times of crisis when quick decisions are needed.
47
What is one appropriate situation for participative management style?
When there is extended time for research and decisions.
48
What is one disadvantage of participative management style?
Time-consuming to collect ideas and make decisions.
49
What are the two main management styles discussed?
Autocratic and persuasive management styles ## Footnote These styles define how decisions are made and how communication flows within a business.
50
What is the primary focus of consultative, participative, or laissez-faire management styles?
Two-way communication and open discussions ## Footnote These styles encourage employee input and collaboration on complex tasks.
51
What type of management style is suited for simple tasks?
Autocratic or persuasive management styles ## Footnote These styles often involve top-down communication and less employee involvement.
52
What is the nature of complex tasks in management?
They require staff input to resolve workplace disputes and employee issues ## Footnote Complex tasks benefit from shared ideas and specialized knowledge.
53
What is the definition of planning in management?
The process of determining business objectives and establishing strategies to achieve them ## Footnote Planning is essential for improving organization and efficiency.
54
Fill in the blank: _______ is the skill of selecting the suitable course of action from a range of options.
Decision making
55
What is the role of communication in management?
Effectively transferring information between parties ## Footnote Managers use communication to interact with various stakeholders.
56
What is delegation in management?
The skill of assigning work tasks and authority to employees lower in the hierarchy ## Footnote Delegation can help managers focus on tasks that only they can complete.
57
What are some reasons for delegation?
* Time constraints * Lack of experience in specific areas * Employees may be better suited for certain tasks
58
What is interpersonal skill in management?
Skill in creating positive interactions with employees to foster relationships ## Footnote It includes providing feedback and understanding employees' motivations.
59
What is the definition of leadership in a managerial context?
Skill of motivating others to achieve a business objective ## Footnote Effective leadership sets standards for workplace conduct.
60
True or False: Managers in an autocratic style are concerned with sharing the business’s vision.
False
61
What management skill involves making decisions with employee input?
Participative management style ## Footnote This style encourages employee involvement in planning and decision-making.
62
What does a positive corporate culture lead to?
More motivated employees and improved overall business performance ## Footnote A negative culture can lower performance standards.
63
What is the official corporate culture?
Shared views and values outlined in written format ## Footnote This includes mission statements and policies.
64
What is real corporate culture?
Shared values and beliefs developed organically within a business ## Footnote It reflects daily practices and interactions among employees.

Business unit 3/4 (1 decks)

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