unit 3 aos 1 Flashcards
(47 cards)
Define Sole traders
owned by one person
- responsible for all aspects of the business
- (unlimited liability)
Define Partnership
a business structure that involves between 2 and 20 people who run a business together
- unlimited liability - partners may have different sized shares
Define Limited Companies
a business with 2-50 shareholders, whose stocks cannot be bought or exchanged on the stock market
Define Listed Companies
a business without a minimum of shareholders, whose shares are freely traded on the stock exchange
Define Social Enterprises
Private Sector business that exists to distribute profits to benefit the community or social need
Define Government Business Enterprises
A business that is government-owned and operates in the public sector
Define Employees & Shareholders
Employees want fair wages, but this will reduce the business’ profit and dividends shareholders receive
Define Management & Customers
management want to make a larger profit, so they keep prices high, leads to upset customers who want fair prices
Define Suppliers & members of community
suppliers may use unethical practices to keep prices down, this can then upset members of the community
Define Communication
The ability to transfer information from a sender to receiver, as well as listen to feedback
Define Delegation
The transfer of authority and responsibility from a manager to an employee to carry out specific activities
Define Planning
ability to define business objectives and decide upon the methods and strategies to achieve them
Define Leadership
The ability to influence and motivate people to work towards the achievement of business objectives.
Define Decision-making
The ability to identify the options available and then choose the best specific course of action from the alternatives
Define Interpersonal
The skills used to interact with others, and the ability to deal or liaise with people and build relationships with staff
List of Business Objectives
- make profit
- increase market share
- improve efficiency
- improve effectiveness
- fulfill market need
- fulfil social need
- meet shareholder expectations
Define Profit
Difference between revenue and expenses
revenue - expense
Define Market Share
Percentage of the market controlled by the business
Define shareholder
owner of a company
Define efficiency
best use of resources in the production of goods and/or services
Define Autocratic management style with dis / adv
Autocratic: manager tells staff what decisions have been made
- nature of task : simple tasks
- time: useful in times of crisis
- employee experience: if they lack knowledge
Define Persuasive management style with dis / adv
Persuasive - manager attempts to convince employees that the decisions (sell the decision) that have made are the correct one while retaining final decision-making power
nature of task: simple task
Time : quick decisions are needed
Employee experience : if they lack knowledge
Define consultative management style with dis / adv
manager seeks input from employees before making decisions
nature of task: more complex / challenging
Time : if their is time for feedback
Employee experience : more informed
Define participative management styles with dis / adv
manager unites with staff to make decisions together
nature of task: complex / creativity needed
Time : sufficient time
Employee experience : knowledgeable
