LSO SAC1 Flashcards
What are the types of LSO?
- Company or cooperation
- Government Business Enterprises (GBE)
- Not for profit organizations
What are the characteristics of a LSO
- employes more than 200 people
- earns revenue in the millions
- has assets of more than 20 million
What is a public company? Include examples.
Public companies shares are listed on the stock exchange which makes it available for the public to buy/sell shares.
For example Telstra and Virgin Blue
What is a private company?
Include example.
Private companies are not listed on the stock exchange and have restrictions on who can buy their shares.
For example. Rip curl and 7 eleven
What is a government business enterprise (GBE)
Include example
A GBE is owned and operated by the government and provide services to the public.
For example. Australia post and Vic roads
Positives of a LSO
Contribution to employment
Contribution to economic growth
Negatives of a LSO
Downsizing
Outsourcing
What does downsizing mean?
Staff may be laid off in order for the LSO to reduce costs, improve productivity and profits
What is outsourcing?
Where a company employs people from overseas instead of people from Australia
What does contribution to employment mean?
employes a large amount of people
What does contribution to economic growth mean?
Measured by the value of goods and services produced in Australia in a year
What is a company/cooperation?
Owned by shareholders and managed by directors. Their objective is to make a profit. There are public and private companies.
Public - Telstra and virgin blue
Private - rip curl and 7 eleven
What is a not for profit organization
Provide example
Not for profit organizations include charities and foundations. Their main purpose is to provide goods, services to prevent problems.
Examples - Salvation Army and world vision
What are two of the five management functions?
marketing and research and development (R&D)
What is marketing?
Marketing is the advertisement of a business.
