SAC 1

Question 1

Sole trader

Answer 1

Business that has only one owner.

Question 2

Partnership

Answer 2

Business that is owned by two or more people.

Question 3

Incorporation

Answer 3

Changing business structure of a sole trader or partnership to a company. Includes registering with Australian Investment and Securities Commission [ASIC] and appointing a director.

Question 4

Unlimited liability

Answer 4

If business struggles financially, owners are responsible for debts.

Question 5

Silent partners

Answer 5

Partners who only contribute to the business financially rather than running it.

Question 6

Private listed company

Answer 6

Has between 1-50 shareholders.

Question 7

Public listed company

Answer 7

Has shares that are listed on public exchanges.

Question 8

Social enterprise

Answer 8

Aims to fulfil a social need.

Question 9

Government business enterprise

Answer 9

Owned and operated by the government with the goal of making a profit.

Question 10

Agenda

Answer 10

Overview of mission and vision statements.

Question 11

Mission statement

Answer 11

Expresses what business stands for and what its values are.

Question 12

Vision statement

Answer 12

Expresses where the business wants to be in the future.

Question 13

Main business objectives

Answer 13

• Make a profit
• Increase market share
• Fulfil social need
• Fulfil market need
• Meet shareholder expectations

Question 14

Areas of management responsibilities

Answer 14

Board of directors 
-
CEO
-
Human resources, finance, operations, sales and marketing, technology support

Question 15

Human Resources

Answer 15

Manages relationships between business and employees.

Question 16

Finance manager

Answer 16

Manages financial inputs and outputs.

Question 17

Operations manager

Answer 17

Manages production of products, overseeing transition of raw materials to final product.

Question 18

Sales and marketing manager

Answer 18

Manages advertisements and promotion.

Question 19

Technology support manager

Answer 19

Manages installation and maintenance of all technology.

Question 20

Autocratic management style

Answer 20

Manager makes all decisions.

Question 21

Persuasive management style

Answer 21

Manager persuades employees to adhere to directions made by management.

Question 22

Consultative management style

Answer 22

Manager seeks feedback from employees before decision making.

Question 23

Participative management style

Answer 23

Manager gives responsibility to employees, employees are involved in all stages of decision making.

Question 24

Laissez Faire management style

Answer 24

Employees are responsible for all workplace operations, whilst managers only set objectives.

Question 25

Communication - management skill

Answer 25

Transfer of information from sender to receiver, acknowledging feedback. [important so stakeholders are clear on expectations]

Question 26

Delegation - management skill

Answer 26

Authority and responsibility is passed down to employees. [important as it frees up time for management and hones employee skills through experience]

Question 27

Planning - management skill

Answer 27

Setting objectives and a way to achieve them. - Strategic: long term goals (3-5 years) - Tactical: medium term goals (1-2 years) - Operational: short term goals (day to day)

Question 28

Leading - management skill

Answer 28

Influence and motivate employees towards achievement of business objectives, giving them direction.

Question 29

Decision making - management skill

Answer 29

Ability to select most appropriate course of action.

Question 30

Interpersonal - management skill

Answer 30

Ability to communicate with a range of people and foster positive relationships.

Question 31

Official corporate culture

Answer 31

Shared beliefs, attitudes, values and behaviours of people within business, expressed through format policies.

Question 32

Real corporate culture

Answer 32

Shares beliefs, attitudes, values and behaviours of people within business, expressed through daily activities and interactions.

Question 33

Distinguishing between real and official corporate culture

Answer 33

- Official is fully documented and can be read whilst real is likely not documented and needs to be observed - Official is often determined by senior management whereas real is influenced by employees regardless of their position - Official is often used to communicate business values with the public whereas real only exists within business

Question 34

Market share

Answer 34

Portion of a market controlled by a business or product.

Question 35

Logical planning process

Answer 35

1. Set objective 2. Analyse environments (gathering information through SWOT analysis) 3. Develop alternatives 4. Implement most appropriate alternative 5. Monitor (see if objective is achieved, taking action where necessary)

Question 36

Common decision making process

Answer 36

1. Identify problem 2. Gather information 3. Develop alternatives 4. Analyse alternatives 5. Chose and implement most appropriate alternative 6. Evaluate (gather feedback on solution to see if it was effective)