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SAC 1 Flashcards

Business foundations (69 cards)

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1
Q

Sole trader

A

a business owned and operated by one person

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2
Q

advantages of sole trader

A

owner has full control of the business decisions

easy to set up and register-inexpensive

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3
Q

disadvantages of sole trader

A

unlimited liability puts personal assets at risk to pay off debts
skills and knowledge limited to the owner

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4
Q

Partnership

A

a business structure owned and operated by 2 to 20 people

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5
Q

characteristics of partnership

A

easy and inexpensive to setup

unincorporated

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6
Q

advantages of partnership

A

greater range of expertise

shared workload

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7
Q

disadvantages of partnership

A

split profit

unlimited liability

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8
Q

private limited company

A

an incorporated business that has at least one director and up to 50 shareholders

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9
Q

characteristics of private limited company

A

incorporated structure, same legal entity, limited liability

director responsible for overseeing affairs of company

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10
Q

advantages of private limited company

A

greater access to capital, as incorporated business more inclined from banks to get loans

limited liability, different legal entity

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11
Q

public listed company

A

an incorporated business that has an unlimited number of shareholders and sells its shares on the asx

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12
Q

characteristics of public listed company

A

-must produce annual financial reports

managed by board of directors

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13
Q

disadvantage of public listed company

A

conflicts could arise due to shared decision making

expensive to maintain as annual fees are paid to the ASX

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13
Q

advantages of public listed company

A

shareholders have limited liability

greater access to expertise as more people are involved with the business

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13
Q

social enterprise

A

a type of business that aims to fulfil a community or environmental need by selling goods or services

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14
Q

characteristics of social enterprise

A

must donate a minimum 50% of profits

earns most of revenue through donations

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15
Q

advantages of social enterprise

A

community benefits from business activities

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16
Q

autocratic management style

A

involves a manager making centralised decisions and directing employees without any input

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17
Q

business objectives

A

goals that a business intends to achieve that gives direction to the business

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18
Q

capital gains

A

an increase in value of a share

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19
Q

centralised control

A

one individual making decisions (manager)

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20
Q

communication

A

the ability to effectively transfer information from a sender to receiver

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21
Q

consultative management style

A

involves a manager seeking input from employees on decisions but still being centralised

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22
Q

decentralised control

A

multiple people have authority to make decisions

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23
delegation
the manager transfers authority and responsibility to employees to complete business tasks
24
dividends
regular sums of money paid out to shareholders
25
effectiveness
how a business achieves its objectives
26
efficiency
how well a business uses its resources in producing G & S
27
general community
individuals or groups effected by business decisions
28
government business enterprise
a profit driven business that is owned by the government but managed separately
29
incorporated
seperate legal entity
30
interpersonal skills
the ability to deal with people and build positive professional relationships with staff
31
laissez-faire management
involves a manager communicating business objectives to employees and giving them freedom to make decisions independently
32
leadership
ability to influence and motivate people to work towards the achievement
33
limited liability
protection of shareholders personal assets against a business debt
34
management skill definition
the behaviour of the manger when making decisions
35
managers
the people that overseeing different areas of the business to ensure its achieving its objectives
36
market share
a business' percentage of the market
37
mission statement
Formally expressing why the business exists
38
objectives
the stated goals that a business aims to achieve in the future
39
official culture
shared views and values that a business aims to achieve, often outlined in written format
40
owner
individuals who establish, invest and have a share of the business
41
participative management style
involves a manager sharing and discussing information with employees so that employees can participate in decision making
42
planning
is the process of determining the business objectives and establishing strategies to achieve them
43
policies
the formal and written rules of the business
44
productivity
number of G&S that are produced compared to the number of resources used in production process
45
profit
revenue minus expenses
46
real culture
shared values and beliefs that develop organically within a business, practised daily by employees
47
shareholder expectations
part owners of the business, they expect dividends and capital gains
48
stakeholder definiton
groups of individuals that have a vested interest in the activities of a business
49
suppliers
individuals or groups that source materials and sell them to a business to use in the production of goods and services
50
unlimited liability
same legal entity and owner is responsible for business debts
51
vision statement
states what the business aspires to become
52
persuasive management
manager communicates reasons for business decisions, centralised decision making, one way commmunication.
53
stakeholders
managers, owners, customers, employees, general community, suppliers
54
types of management skills
delegation, communication, decision making, interpersonal skills, leadership
55
style approipriateness
time, nature of the task, experience of employees, manager preference
56
decision making
is the skill of selecting a suitable course of action from a range of plausible options
57
types of offical culture
policies, vision statement
58
types of real culture
celebrations, rituals, office layout
59
types of business objectives
increase profit, increase market share, fulfil a social need, fulfil market need, meet shareholders expectations
60
meet share holder expectations
captial gains on investment, paid in dividends
61
owners interests
Receiving a return on their investment, often through business growth
62
manager interests
Being recognised for the achievement of business objectives.
63
supplier interests
Paid on time Professional relationship with business Continued business to continue revenue
64
Discuss
Advantages and disadvantages
65
evaluate
strengths snd weaknesses overall statement
66
outline
brief overview
67
compare
similarities and differences

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