Unit 3 AOS1 - Business Foundations Flashcards
Bus Man SAC U3 AOS1 period 3 Friday, 21 February (36 cards)
Sole Trader
A business structure is owned and operated by one person who has unlimited liability and the owner makes all the decisions and is unincorporated.
Partnership
A business structure that is owned and operated by 2-20 owners and is unincorporated with unlimited liability.
Private Limited Company (Pty Ltd)
In an unincorporated business that has up to 50 shareholders and at least 1 director who forms the Board of Directors, shareholders have limited liability and receive a dividend.
Public Listed Company
An incorporated business with an unlimited number of shareholders which lists and sells its stocks on the ASX, requires at least 1 shareholder and 3 directors and possesses higher regulation.
Social Enterprise
A type of business that aims to fulfil a community need by selling their goods and services, not specifically another business type. Must donate 50% of its profits to a social cause to be registered.
Government Business Enterprise
A business that is owned and operated by the government generally seeks to address public needs.
Business Objectives
To make a profit, increase market share, fulfil shareholder expectations, fulfil a market need, fulfil a social need, improve efficiency and improve effectiveness.
Efficiency
How productively a business uses its goods and services through resource allocation.
Effectiveness
The extent to which a business achieves its stated objectives.
Owners
Individuals who establish, invest and have a share in a business often have the goal to make a profit from a business’s objectives.
Managers
Individuals who oversee and coordinate a business’s employees and lead its operations to achieve objectives, e.g. human resource or operations managers.
Employee
Individuals who are hired by a business to complete work tasks and assist in the achievement of business objectives.
Customers
Individuals or groups who interact with a business by purchasing and utilising its products.
Suppliers
The individuals or groups that source raw materials, components, and parts then sell them to a business for use as outputs.
General Community
The individuals or groups impacted by a business’s operations and decisions, often since they live nearby.
Autocratic Management
Involves a manager making decisions directing employees without any input from them, a one-way communication flow with centralised governance.
Persuasive Management
It involves a manager making decisions and communicating their reasons for those decisions to employees without their input, one-way communication flow, and centralised governance.
Consultative Management
Involves a manager seeking input from employees on business decisions but making the final decision themselves, centralised control and a two-way communication flow.
Participative Management
Involves a manager sharing information with employees so they can participate in the decision-making, decentralised control and a two-way communication style.
Laissez-Faire Management
Involves a manager communicating business objectives to employees and giving them the freedom to make decisions independently, decentralised control and two-way communication flow.
Time
The amount of time avaliable to make a decision should be considered, during emergencies autocratic decision making is quicker and often better while with more time consultation can take place.
Employee Experience
The experience of employees can influence the quality of their decisions. More experienced and independent employees can make better decisions by promoting a more decentralised methodology while newer less experienced employees should not be able make the same level of decision.
Nature of the Task
The complexity of the task should be considered as simple tasks need less management while complex tasks need more specialisation and investment.
Manager Preferences
A manager may be more individualised, hinting at a more autocratic decision-making structure; conversely, they may be less controlling, and this leads to less control.
