Unit 3 Business Management

Flashcards based on key terms and concepts from Unit 3 Business Management lecture notes.

Sole Trader

A type of business structure with only one owner who is responsible for the operations of the business.

Unlimited Liability

The business owner must take personal responsibility for business debts.

Partnership

A business structure with two to twenty owners who jointly own and operate a business.

Private Limited Company

A business structure that is a separate legal entity, owned by 1-50 shareholders, with limited liability.

Public Listed Company

A business structure that can have unlimited shareholders, selling shares on the stock exchange.

Social Enterprise

A type of business with the primary aim of benefiting the community and/or the environment.

Government Business Enterprise (GBE)

A type of business owned by the government, aiming for profit while providing community services.

Business Objectives

Goals that provide direction for actions to be achieved within a given timeframe.

Stakeholder

Any person or group who has a vested interest in a business and can affect or be affected by that business.

Autocratic Management Style

A style where complete power lies with management, characterized by centralised decision-making and one-way communication.

Consultative Management Style

A management style that values employee relationships and seeks their input before making decisions.

Participative Management Style

A style where employees are involved in decision-making alongside management.

Laissez-Faire Management Style

A hands-off approach to management where employees work autonomously.

Corporate Culture

The shared values and beliefs of the people within a business, distinguishing between official and real culture.

Management Skills

Essential abilities for managers that include communication, delegation, planning, leadership, decision-making, and interpersonal skills.

Evaluate

To assess the advantages and disadvantages of something, often with respect to decision making.

Communication Skills

The two-way process of sending and receiving information clearly and effectively.

Delegation Skills

The transfer of authority and responsibility from a manager to an employee to carry out specific tasks.

Interpersonal Skills

Skills used in interactions with others to build relationships and team rapport.

Efficiency

The aim to improve how well a business uses its resources to reduce waste.

Effectiveness

The goal of achieving stated objectives such as profit and sales.