Summaritove 1 term 3

Leaders

Are visionaries who inspire and drive change, focusing on setting a goal and motivating people

Managers

Concentrate on executing visions through organised practical methods .

Paternalistic

Managers or leaders who sees subordinates as family members there by guiding and protecting them when decisions are made

Laissez faire

Refers to managers or leader who is comfortable and used to give authority to employees

Autocratic

Refers to managers or leaders who does not consult employees in the decision making process

Democratic

Refers to managers or leaders who give employees authority in the decision making process as well as consult them in the process too

Situational

Refers to managers or leaders who is both willing and able to change and adapt according to different circumstances and scenarios

Taylor management theory

Organising work that focuses on making tasks more effiecnt by studying them

Maslow hierarchy of needs

Proposed that humans needs are organised in a hierarchy

1.physiological 2.saftey 3. Social 4. Esteem 5.self actualisation

Herzberg motivation hygiene theory

Identified factors that either motivate or demotivate employees

Motivation (achievement, recognition, job satisfaction)

Hygiene factors (salary , working conditions , job security)

Role of finance

Finances is needed to start a business

1. Starting a business

2. Expansion

3. Working capital

4. Innovation

Capital expenditure

Refers to a business spending on non current assets or equipment of a business

Finance

Refers to the various available money that an organisation has to find its business activities

Revenue expenditure

Refers to business spending on its everyday and regular operations

Asset

Anything that a business owns and has a marketable value

Internal sources of finances

Are those that come from within the organisation , form it’s own resources and assets , without the help of a third party

Personal funds

Are internal sources or finances that come form the savings of the business tat are used to finance their startup

Retained profit

having a financial surplus

Share capital

money raised from Company shares, preferences

Business angels

private investors that choose invest in a new business venture that offers a larger potential growth .

Crowdfunding

Involves money raising form a small amounts of money from a large number of people to fund a particular business project or venture .

Trade credit

Enables a business to purchase and obtain good and services but to pay for these at a later date

Micro finance provides

Are for profit social enterprises that offer a financial service to those without a job or very low incomes

Overdrafts

Allows a business to temporarily draw out more than the funds in their bank account

Loan capital

Loans obtained from commercial lenders

Leasing

A contract that allows a lessee to rent goods form a lessor .

Debentures

Long time loans