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What are the characteristics of a Sole Trader?

One owner, unlimited liability, easy to start, keeps all profits, full control, business ends if owner dies.

What are the advantages of a Sole Trader business?

Simple to set up, quick decisions, full profit retention.

What are the disadvantages of a Sole Trader business?

Unlimited liability, limited capital, long hours.

What are the characteristics of a Partnership?

2–20 owners, shared profits, partnership deed, unlimited liability (usually).

What are the advantages of a Partnership?

More capital, shared skills, shared workload.

What are the disadvantages of a Partnership?

Conflicts, shared profits, unlimited liability.

What are the characteristics of a Private Limited Company (Ltd)?

1–50 shareholders, limited liability, shares sold privately, separate legal identity.

What are the advantages of a Private Limited Company (Ltd)?

Limited liability, continuity, more capital.

What are the disadvantages of a Private Limited Company (Ltd)?

Lengthy setup, more rules, financial reporting.

What are the characteristics of a Public Limited Company (PLC)?

Shares sold publicly, limited liability, strict regulations, must publish accounts.

What are the advantages of a Public Limited Company (PLC)?

Ability to raise huge capital, high public image.

What are the disadvantages of a Public Limited Company (PLC)?

Risk of takeover, expensive setup, heavy regulation.

What are the advantages and disadvantages of converting from a Sole Trader to a Partnership?

Advantage: more capital; Disadvantage: shared profits.

What are the advantages and disadvantages of converting from a Partnership to a Private Limited Company (Ltd)?

Advantage: limited liability; Disadvantage: more regulations.

What are the advantages and disadvantages of converting from a Private Limited Company (Ltd) to a Public Limited Company (PLC)?

Advantage: more capital; Disadvantage: loss of control.

Describe a Market economy.

Features private ownership and a profit motive. Advantages include efficiency; disadvantages include inequality.

Describe a Planned economy.

Features government control. Advantages include equality; disadvantages include inefficiency/lack of innovation.

Describe a Mixed economy.

A combination of market and planned economy features. Advantages include being balanced; disadvantages include possible government delays.

What are the key features of money?

Durable, divisible, portable, acceptable, limited supply, hard to counterfeit.

What are the main functions of money?

Medium of exchange, store of value, unit of account, standard of deferred payment.

Define the Public Sector.

Owned by the government, aims to provide public services.

Define the Private Sector.

Owned by individuals/companies, aims for profit.

What are the advantages and disadvantages of Cheques as an instrument of exchange?

Advantage: safe; Disadvantage: slow.

What are the advantages and disadvantages of Credit cards as an instrument of exchange?

Advantage: convenient; Disadvantage: debt risk.

What are the advantages and disadvantages of Mobile money as an instrument of exchange?

Advantage: fast; Disadvantage: needs phone network.

What are the advantages of a Franchise?

Established brand, training, lower risk.

What are the disadvantages of a Franchise?

Fees, strict rules, limited freedom.

List the functional areas of a business.

HR (Human Resources), marketing, finance, production/operations, customer service, administration, R&D (Research and Development).

List common ethical issues in business.

Misleading advertisements, improper waste disposal, discrimination, unsafe work conditions, child labor, unfair pricing.

What are common sources of conflict in the workplace?

Poor communication, unfair treatment, low wages, personality clashes, shortage of resources, poor conditions, unclear roles, workload imbalance.

What activities do employees use to gain an upper hand in disputes?

Strikes, go-slows, work-to-rule, picketing, overtime bans, sit-ins, complaints through unions.

What strategies do employees use to gain an upper hand?

Union support, collective bargaining, industrial action, petitions, legal action, media exposure.

What strategies do employers use to gain an upper hand in disputes?

Lockouts, hiring temporary workers, withholding bonuses, legal action, changing work rules, reducing hours.

What are common solutions to resolve workplace conflicts?

Negotiation, mediation, arbitration, staff meetings, better communication, fair policies, improving work conditions.

Outline the typical steps of a Grievance Procedure.

1. Report to supervisor; 2. Discussion; 3. Escalate to manager; 4. Written complaint; 5. HR/union meeting; 6. Arbitration; 7. Final decision.

What management strategies can be used to build good staff relationships?

Communication, training, rewards, fair treatment, staff involvement, team building, good working conditions.

Who are the key stakeholders of a business?

Employees, managers, owners, customers, suppliers, government, banks, community.

What are management's responsibilities to Employees?

Fair wages, safety.

What are management's responsibilities to Customers?

Quality, honesty.

What are management's responsibilities to Suppliers?

Prompt payment.

What are management's responsibilities to Government?

Taxes, compliance.

What are management's responsibilities to the Community?

Environmental care.

What are management's responsibilities to Shareholders?

Profit and information.

List the main functions of management.

Planning, organizing, staffing, leading, controlling, coordinating.

What does an Organizational Chart show?

Shows levels of authority, who reports to whom, departments and overall structure.

Explain a Line relationship in an organizational structure.

Involves direct authority and directly produces goods or services.

Explain a Staff relationship in an organizational structure.

Involves advisory/support roles (e.g., HR, IT) with no direct authority over core operations.

What is the Chain of Command?

The flow of authority from the top to the bottom of an organization.

What is the Span of Control?

The number of employees supervised directly by a manager; can be wide or narrow.

What are the characteristics of a good leader?

Communication, confidence, honesty, vision, motivation, empathy, decision-making ability.

What are the advantages and disadvantages of the Autocratic leadership style?

Advantage: quick decisions; Disadvantage: low morale.

What are the advantages and disadvantages of the Democratic leadership style?

Advantage: motivated staff; Disadvantage: slower decisions.

What are the advantages and disadvantages of the Laissez-faire leadership style?

Advantage: fosters creativity; Disadvantage: lack of direction.

What are the advantages and disadvantages of the Transactional leadership style?

Advantage: provides reward-based clarity; Disadvantage: not inspiring.

What are the advantages and disadvantages of the Transformational leadership style?

Advantage: high motivation and innovation; Disadvantage: may overlook details.

What are the advantages of a Barter system?

Simple system, no money needed, good for small communities.

What are the disadvantages of a Barter system?

Requires a double coincidence of wants, hard to measure value, hard to store wealth, not suitable for a modern economy.

What are common financial motivators for employees?

Wages, salaries, bonuses, commission, allowances, overtime pay, profit-sharing, piece-rate.

What are common non-financial motivators for employees?

Recognition, training, job rotation, job enrichment, job enlargement, teamwork, flexible hours, promotion.

What are the advantages of teamwork?

Better problem solving, higher morale, shared workload, increased creativity, faster task completion, improved communication.

What are the disadvantages of teamwork?

Potential for conflicts, 'free-riders', slower decisions, dominant members, coordination problems.

Outline the Communication Process Diagram.

Sender → Encoding → Message → Channel → Decoding → Receiver → Feedback. (Noise can disrupt communication)

What are effective strategies for better communication?

Clear language, correct channel selection, reduction of noise, encouragement of feedback, active listening, confirmation of understanding, use of visual aids, fostering a good communication culture.