BUSINESS MANAGEMENT

Sole Traders

A business owned and operated by one individual, who has full decision-making power but faces unlimited liability.

Unlimited Liability

A financial situation where an owner is personally responsible for all business debts and liabilities.

Partnerships

A business structure owned by two to twenty owners sharing responsibilities, expertise, and financial risks.

Private Limited Companies

Incorporated businesses with up to 50 shareholders, offering limited liability but requiring complex reporting.

Public Listed Companies

Incorporated firms with a minimum of one shareholder and three directors, listed on the ASX, selling shares to the public.

Social Enterprises

Businesses that address community or environmental needs while aiming for profit, not classified as legal businesses.

Government Business Enterprises

Entities owned by the government but managed as profit-earning organizations, offering services that benefit the community.

Business Objectives

Goals such as making a profit, increasing market share, improving efficiency and effectiveness, fulfilling market and social needs, and meeting shareholder expectations.

Market Share

A company's sales as a percentage of total sales in its industry, indicating its competitiveness.

Efficiency

The productive use of resources in a business, aimed at minimizing costs and waste.

Effectiveness

The degree to which a business meets its stated objectives and targets.

Internal Stakeholders

Individuals within a business, such as owners, management, directors, and employees, who have a vested interest in its success.

External Stakeholders

Individuals and groups outside of a business, including customers, suppliers, and the general community, who are affected by its operations.

Corporate Culture

The shared values and beliefs of a business and its employees, influencing the work environment and performance.

Management Skills

Key skills including communication, delegating, planning, leadership, decision-making, and interpersonal skills necessary for effective management.

Autocratic Management Style

A style where the manager makes decisions unilaterally and expects compliance from employees.

Participative Management Style

A style where managers and staff collaborate in the decision-making process, enhancing employee motivation.

Laissez-faire Management Style

A hands-off approach where employees are given freedom in decision-making, with minimal managerial oversight.

Delegating

The act of assigning authority to others while retaining responsibility for the overall task.

SWOT Analysis

A strategic planning tool used to identify Strengths, Weaknesses, Opportunities, and Threats related to a business.