Business SAC 1 Revsion

What is a Sole Trader business structure?

Owned and operated by a single individual, simple to set up, with unlimited liability.

What are Partnerships?

Businesses owned by two or more individuals, with shared responsibility and profits, governed by a partnership agreement.

What is a Private Limited Company (Ltd)?

A business owned by private shareholders, protects personal assets with limited liability, and profits can be reinvested or distributed as dividends.

What distinguishes a Public Listed Company (PLC)?

Shares are sold to the public on a stock exchange, must comply with strict regulations, and aims to maximize shareholder value.

What is the objective of a Social Enterprise?

Focus on social objectives rather than profit maximization, with profits reinvested into community or social causes.

Define Government Business Enterprises (GBE).

Businesses owned by the government that provide public services and operate efficiently like a corporation.

What is the main business objective to make a Profit?

Essential for the sustainability and growth of the business.

How does a business Increase Market Share?

By gaining a larger percentage of the market to achieve economies of scale and competitive advantage.

What does it mean to Fulfil a Market and/or Social Need?

Aiming to address specific problems in the community or fill market gaps, contributing to social welfare.

What is Corporate Social Responsibility (CSR)?

The practice of balancing profit-making with ethical considerations and social welfare.

What is the role of Operations management?

Managing day-to-day activities to contribute to the company's profitability.

How does the Finance department contribute to a business?

By controlling the financial health of the company and managing its assets and liabilities.

What is the focus of Human Resources management?

Staffing, training, and employee relations, impacting productivity and morale.

Describe the Autocratic management style.

A style where the manager makes decisions unilaterally and is effective in crisis situations.

What does the Persuasive management style involve?

The manager convinces employees of a decision to improve acceptance.

What is the Consultative management style?

A style where the manager seeks input from employees but ultimately makes the decision.

What is the importance of Communication in management skills?

Clear messaging is critical for effective leadership and team operations.

What are the key aspects of Management Skills?

Communicating, delegating, planning, leading, decision-making, and interpersonal skills are all essential.

How does Corporate Culture affect a business?

It encompasses both the official culture expressed in policies and the real culture of how things operate.

What strategies are used for developing Corporate Culture?

Involvement from leadership, employee participation, continuous evaluation, and alignment with business objectives.