Unit 3 AOS 1 - Business foundations

Question 1

Sole trader

Answer 1

When one individual owns and runs the operations of a business.

Question 2

Partnership

Answer 2

When a business is owned and operated by 2 to 20 people.

Question 3

Private limited company

Answer 3

An incorporated business that has 1-50 non employee shareholders.

Question 4

Public limited company

Answer 4

Incorporated business with a minimum of one share holder and no maximum, their shares are traded on the Australian Securities Exchange.

Question 5

Government business enterprise

Answer 5

That is government owned and operated.
Carry out community needs while still creating a profit.

Question 6

Social enterprise

Answer 6

A business that has the objectives of fulfilling a social need.

Question 7

Business objectives

Answer 7

A desired outcome or specific result that a business intends to achieve.

Question 8

Strategies

Answer 8

Are the actions undertaken to achieve objectives.

Question 9

7 business obectives

Answer 9

1. To make a profit
2. To increase market share
3. To improve efficiency
4. To improve effectiveness
5. To fulfil a market need
6. To fulfil a social need
7. To meet shareholder expectations

Question 10

Employees

Answer 10

Provide labour in exchange for wages and produce/ sell the goods or services of the business.

Question 11

Managers

Answer 11

Act on behalf of the owners/ directors to direct the business and its employees towards the achievement of objectives

Question 12

Owners and directors

Answer 12

Invest in the business in order to receive profit (owner)/ dividends (director) in return for their investment. They also have overall responsibility for managing the businesses strategic direction.

Question 13

General community

Answer 13

Includes the general public or groups external to the business

Question 14

Customers

Answer 14

Purchase the good or service of the business to satisfy their needs.

Question 15

Suppliers

Answer 15

Provides the business with the resources/ raw material used in the production process.

Question 16

Management styles

Answer 16

Refers to the behaviour and attitude of the manager in the way that they provide direction, motivate the staff and implement plans.

Question 17

Autocratic

Answer 17

A manager who seeks no input from employees , they have the authority to make decisions and do not delegate, these managers are task orientated and aim to meet deadlines.

Question 18

Persuasive

Answer 18

A manager who has all authority to make decisions, and do not seek input from employees, However they take the time to explain choices to employees.

Question 19

Consultative

Answer 19

A manager has all decision making authority however seeks input from employees to improve their decisions.

Question 20

Participative

Answer 20

Two way communication where decision making and control is shared equaly among employees to create in inclusive and collaborative environment.

Question 21

Laissez-faire

Answer 21

When managers have very little communication with employees, and have little control or management over employees as they set their own objectives.

Question 22

How to evaluate management style

Answer 22

Task complexity
time
managers preference
employee experience

Question 23

management skills

Answer 23

the abilities or expertise required by a manager to successfully complete their role and responsibilities.

Question 24

Communication

Answer 24

Transfer of information from a sender to a receiver, occurring within and outside the business.

Question 25

Delegation

Answer 25

Authority and responsibility to carry out specific activities is transferred from a manger to an employee.

Question 26

Planning

Answer 26

Ability to define business objectives and determine methods or strategies that will be used to achieve those business objectives.

Question 27

Leadership

Answer 27

Managers endeavour to influence or motivate people in the business to work to achieve the objectives.

Question 28

Decision making

Answer 28

Identifying available options and then choosing one course of action from the alternatives.

Question 29

Interpersonal skills

Answer 29

Management’s ability to deal or liase with people and build positive relationships with staff.

Question 30

Corporate culture

Answer 30

It is the values, ideas, expectations and beliefs shared by the staff and managers of the business.

Question 31

Official corporate culture

Answer 31

Formal and written communication about how people in the business operate.

Question 32

Real corporate culture

Answer 32

Unwritten or informal rules that guide how people in the business operate.

Question 33

4 elements of corporate culture

Answer 33

Values and practices symbols Rituals and celebrations heroes