unit 3 aos 1

Question 1

Types of businesses:

Answer 1

Sole traders
Partnerships
Private limited companies
Public companies
Social enterprises
Government business enterprises (GBE)

Question 2

Business objectives examples:

Answer 2

Profits
Market share
To improve efficiency
To improve effectiveness
Fulfilling market/social needs
Meeting shareholder expectations

Question 3

Profits:

Answer 3

Total revenue earned minus total expenses incurred.

Question 4

Market share:

Answer 4

Proportion of that industry’s sale that you control.

Question 5

Efficiency:

Answer 5

How well a business uses resources to achieve objectives

Question 6

Fulfilling market needs:

Answer 6

when a business fills a gap in the market, (addressing customer needs that are currently unmet other businesses in the same industry).

Question 7

Fulfilling a social need:

Answer 7

improving society and the environment through business activities

Question 8

Meeting shareholder expectations:

Answer 8

Shareholders have an interest in the performance of the company, looking for return on their investment

Question 9

Communicating Objectives:

Answer 9

Vision + mission statements

Question 10

Vision statement:

Answer 10

expresses what a business hopes to become.

Question 11

Mission statement:

Answer 11

expresses reasons for a business’s existence, purpose and method of operation.

Question 12

Objectives:

Answer 12

desired goal an organisation intends to achieve, gives direction.

Question 13

Strategies:

Answer 13

actions taken to achieve a specific objective.

Question 14

SOLE TRADERS:

Answer 14

Individual who owns the business, and is the sole person legally responsible for all aspects of the business.

Question 15

PARTNERSHIP:

Answer 15

Involves 2 to 20 individuals who own a business together.

Question 16

PRIVATE LIMITED COMPANY:

Answer 16

Incorporated business structure that has at least one director and a maximum of 50 shareholders.

Question 17

PUBLIC LISTED COMPANY:

Answer 17

Incorporated business that has an unlimited number of shareholders and lists and sells its shares on the ASX

Question 18

SOCIAL ENTERPRISE:

Answer 18

Business that aims to fulfil a community/environmental need by selling goods/services

Question 19

GOVERNMENT BUSINESS ENTERPRISE:

Answer 19

Business owned and operated by the government.

Question 20

Stakeholder examples:

Answer 20

Owners, managers, employees, customers, suppliers, general community

Question 21

Owners:

Answer 21

establish and invest, often with the goal of earning a profit from its operations

Question 22

Managers:

Answer 22

oversee and coordinate employees and lead its operations to ultimately achieve business’s objectives.

Question 23

Employees:

Answer 23

hired by a business to complete work tasks and support the achievement of its objectives.

Question 24

Customers:

Answer 24

interact with a business by purchasing its goods and services.

Question 25

Suppliers:

Answer 25

source raw and processed materials and sell them to a business for use in the production of its goods and services.

Question 26

General community as stakeholders:

Answer 26

who are impacted by a business’s operations and decisions

Question 27

MANAGEMENT STYLES examples:

Answer 27

Autocratic management Persuasive management Consultative management Participative management Laissez-faire management

Question 28

Autocratic management:

Answer 28

Leader dictating the objectives to be achieved + how to achieve them

Question 29

Persuasive management:

Answer 29

Leader dictating the objectives to be achieved and persuading the employees on how to achieve them

Question 30

Consultative management:

Answer 30

Leader asking their employees for their opinions before making decisions

Question 31

Participative management:

Answer 31

Leader sharing decision-making responsibility with employees to create consensus decision

Question 32

Laissez-faire management:

Answer 32

Employees being responsible for decision making + operations

Question 33

THE APPROPRIATENESS OF MANAGEMENT STYLES:

Answer 33

Nature of the task Time Experience of employees Preference of manager

Question 34

Nature of the task:

Answer 34

depend - if you need a lot of employee input vs manager decision

Question 35

Time:

Answer 35

when time is critical = autocratic style of management when there is an extended timeframe = participative style

Question 36

Experience of employees:

Answer 36

if inexperienced, may not ask for opinion vs if you are experienced, you may be asked for opinions

Question 37

Preference of a manager:

Answer 37

managers revert back to management style to match personality: if assertive = more likely to be autocratic

Question 38

Management skills:

Answer 38

Communication skills Delegation skills Planning skills Leadership skills Decision-making skills Interpersonal skills

Question 39

Communication skills:

Answer 39

Process of creating and exchanging information between people that produces the required response.

Question 40

Delegation skills:

Answer 40

Passing of authority down the hierarchy to perform tasks/make decisions

Question 41

Planning skills:

Answer 41

Formalized decision-making process that is future oriented.

Question 42

Leadership skills:

Answer 42

guiding the business and employees towards achieving its objectives

Question 43

Decision-making skills:

Answer 43

process of purposely choosing an course of action from a set of alternatives to achieve business objectives

Question 44

Interpersonal skills:

Answer 44

to interact with others properly, employees ability to build positive relationships with others while getting the job done

Question 45

CORPORATE CULTURE:

Answer 45

Shared values, beliefs and practices of a business

Question 46

Official culture:

Answer 46

Values + beliefs a company conveys to the public (logos, mission statements)

Question 47

Real culture:

Answer 47

ACTUAL values + beliefs present in a company, observable from dress, behaviour, interactions, etc.

Question 48

Types of planning:

Answer 48

strategic-planning (long-term), tactical-planning (medium-term), operational-planning (short-term)

Question 49

To improve effectiveness

Answer 49

extent to which a business achieves its stated objectives

Question 50

Stakeholders

Answer 50

individuals, groups, or organizations who have a vested interest in the performance of a business

Question 51

Real corporate culture examples:

Answer 51

Celebrations, dress code, promotions, hiring

Question 52

Official corporate culture examples:

Answer 52

Mission statements, logos, policies, training