busmnan unit 3 aos 1

Sole trader

owns and operates the business by themselves.

They may employ others but the “sole trader”is the person who provides all the finance, makes all the decisison and takes all the responsibiloty.

ADV-Low cost, no disputes, complete control

DIsadv-Personal unlimited liability, diffculty in raising finance for expansion

Partnerships

Owned by 2-20. Not a seperate legal entiity from the partners.

Adv-low start up costs, no taxes on business profits

Disadv-Personal unlimited liability, divided loyalty and authority

Private limitied companies

up to 50 shareholders, 1+ director, ownership is divided into equal parts called shares

adv-easier to attract finance, limited liability

disadv-cos of formation, company is taxed on profits

Public listed companies

1+ shareholder, no max amount. Large in size, listen on asx

asdv-limitied liabuility, can attract extra capital through share market

Social enterprises

Produces goods and servicess, main objective of fufilling a social need where profits are reinvested for the social objective

GOvernement business enterpsies

Goal of making a profit, owned and operated by governement. aus post

increase market share

potion of the market contorlled by a particualr business

Autocratic

the leader dictates what the objectives are and how they should be achieved.

Adv-manager retains all control, time is used efficeintly as there is no discussion

disadv-employees are low motivation, poor relationship between management and emplyoees

Persuasive

where the leader dictates what the objectives are and persuades employees as to how they should be achieved.

Adv-manager retains all control, time is used very efficeintly

disadv-no employee input, employees may not feel empwoered

Consultative

where the leader asks employees for their opinions before making a decision.

adv-asking for suggestions broadens the pool of ideas, boost employee satisfaction and motivation

disadv-time consuming, some employees may be ignored whcih may lead to them being resented

participative

the leader shares decision making responsibility with their team

adv-empowers employees, teamwork and group decision making improves final decision

disadv-can be time consuming, may cause conflcit

Participative

leader shares decision making responsibility with their team.

Laissez faire

employees are totally responsible for the decision making and operation of the business.

Communication skills

The transfer of information from a sender to a receiver

delegation

transfer of authority and responsibility from a manager to an employee to carry out specific activities. The manager remains accountable for the wor

Planning

process of thinking about the strategies and tasks required to best achieve a business objective

Leaderhsip

guiding the business, and its employees, towards achieving its objectives

Decision making

the process of purposely choosing a course of action from a set of alternatives to achieve business objectives

Interpersonal

used by a person to interact with others properly. In business, the term generally refers to an employee's ability to build positive relationships with others while getting the job done