business AOS 1 SAC1

sole trader

owned by one person, same legal entity, unlimited liability

sole trader (advantages & disadvantages)

advantages

-complete control

-keep net profit

disadvantages

-unlimited liability

-dificult to gain finance

partnership

owned by between 2 and 20 people, unlimited liability

partnership (advances & disadvantages)

advantages

-workload shared

-increased funds

disadvantages

-profits are shared

-difficult to remove partner

private listed company

incorporated business owned by 1-50 people

private listed company ( advantages and disadvantages)

advantage

-limited liability

-life of company lives longer than owner

disadvantages

-complex to establish

-shares cannot be traded freely

public listed company

owned by a minimum of 1 person and listed on a public exchanges such as asx

public listed company (advantages & disadvantages)

advantage

-llimited liability

-life of company lives longer than owner

disadvantage

--no control over who owns the conmpany

-required to notify public of their performance

social enterprise

aim to adress and improve a social, community or environmental cause

social entreprise (advantages & disadvantages)

advantage

-attract customer through beliefs

-improve employees morales (contributing)

disadvantages

-focus on profit / social cause

-tight budget

government business enterprise

owned by government operates commercial aimnto make profit whilst carrying out government polices

government business enterprise (advantages and disadvantages)

advantages

- offer services the other business may not find desirable

disadvantages

-funding may change with government

business

organisation or enterprising entity engaged in commercial industrial and professional activities

unlimited liability

personally responsible for any debts incurred by the business

limited liability

owners of a business are only financially responsible for the debts of the company up to the amount of their investment

business ojective

specific goals the business is aiming to achieve in a specify period of time

vision

what the business aspires to be

mission

why the business exist and how it operates

business objectives eg

-to makes a profit

-to increase market share

-to improve efficiency

-to improve effectiveness

-to fullfil a market or social share

-to meet share holder expectations

to make a profit

the amount of money left after expenses have been deducted from revenue

to increase market share

the proportion of sales a business has compared to total sales in the industry

to improve efficiency

measure how well a business is using its resources

to improve effectiveness

ability of a business to achieve its objectives

to fulfil a market or social need

gap that the business can satisfy/ solve

to meet shareholder expectations

return on their investment

stakeholder

a person or group with a vested interest in a business

stakeholder examples

-owners

-managers

-employees

-customers

-suppliers

-community

owners (description and interest)

-owns part of business

-receive return on their investment, growth in the business

owner (possible conflicts)

not get return on investment

manager (description and interest)

-make decision, leases other to achieve business objectives

-working towards business objectives

manager (conflicts)

need to consider the interest of each stakeholder

employees (description and interest)

-preforn takes in the business in exchange for a wages

-to receive fairway, good working conditions

employees (conflicts)

-demand increase of pay

customer (description and interest)

-purchase good/service

-recieve good quality products at fair prices

customer (conflicts)

increase prices , quality

suppliers (description and interest)

-provide resources for business

suppliers (conflicts)

may not be payed fairly

community ( description and interest)

--live in area business operates in

-business supports local community by offering employment

community (conflicts)

may not employ within community

safety

management styles

the behaviours an attitudes of the manager when decision. making and communicating with employees

managmwnr style examples

autocratic

persuasive

consultative

participative

laissez-faire

autocratic

manager makes decision than tells employees the decision

autocratic (advantages & disadvantages)

advantages

-decisions are made quickly

communication is clear

disadvantages

-no employees imput

-reduce creativity

persuasive

manger makes decision and aim to convince the employees its the best decision

Persuasive (advantages and disadvantages)

advantages

-quick decisons

-communication is clear

disadvantage

-no employees imput

-feeling of manipulation

consultative

manger seeks feedback from employees before they make the final decision

consultative (advantages and disadvantages)

advatage

-manager make informed decision

-larger amount of ideas

disadvantage

-time consuming

-some ideas may be overlooks causing conflict

participative

manger collaboratively makes decision with employees

participative (advantages and disadvantages)

advantage

improved morals

effective problem solving

disadvantages

time consuming

disagreement on final decision

lassez faire

manager gives autonomy and trust to employees to carry out task and make decision

lasses fair (advantages and disadvantages)

advantages

- improved creatity

--increaee motivation

disadvantage

-lack of drection

-poor performance

management skills

The competencies that managers use to help them achieve required objectives

manager skills examples

communication

delegation

planning

leading

decision making

interpersonal

communication

transfer information from on person to another

delegation

manger passes authority and responsibility to an employee to carry out task

planning

ability to set objective and outline the strtiges that will help achieve them

planning structure

S-et objective

A-nanylse present situation

D- evelop alternative strategies

I- implement best strategy

M-oniter progress

leading

ability motivate and inspire others towards the ahicvement of business objective

decision making

choosing the best course of action fro a range of alternative

decision making structure

D-efine objectives

O-utline facts

D-evelop severe solutions

S-elect preferred alternative & implement

E-valurate effectiveness

interpersonal

the ability off a manger to interact with other and build positive relationships

corporate culture

the shared values and beliefs of the people within the business

real corperate culture

actual values and beliefs that are displayed by the people in the business

offical corporate culture

shared values and beliefs that th business wants its people to display

elements of operate culture

core values

rituals and celebrations

heros-employess of the month