Business Management: Business Types, Objectives, Management Styles, Skills, and Corporate Culture

Comprehensive vocabulary flashcards covering business structures, business objectives, stakeholders, management styles, managerial skills, and corporate culture.

Sole Trader

A business structure that is owned and operated by one individual.

Partnership

A business structure that is owned by two to 20 owners.

Private Limited Company

Is an incorporated business structure that has at least one director and a maximum of 50 shareholders

Public Listed Company

An incorporated business that has an unlimited number of shareholders and lists and sells its shares on the ASX.

Social Enterprise

A type of business that aims to fulfil a community or environmental need by selling goods or services.

Government Business Enterprise (GBE)

A business enterprise that is owned and operated by the government.

Business Objectives

The stated goals that an organisation intends to achieve.

Make a profit

Is a fundamental objective for a business. Profit occurs when a business generates more revenue than expenses incurred

Increase market Share

A business's percentage of total sales within a specific industry.

Meet shareholder expectations

Shareholders want businesses to make a profit as they recieve a portion of the profits (dividends)

Fulfil a Market Need

Is when a business fills a gap in the market, which involves addressing customer needs that are currently unmet or underrepresented by other businesses in the same industry

Fulfil a Social Need

Is improving society and the environment through business activities

Efficiency

Is how productively a business uses its resources when producing a good or service

Effectiveness

The extent to which a business achieves its stated objectives.

Stakeholders

Individuals, groups, or organisations who have a vested interest in the performance, and activities of a business.

Shareholders

are an owner of shares in a company.

Owners

are individuals who establish, invest, and have a share in a business, often with the goal of earning a profit from its operations. Owners are known as shareholders in companies

Managers

are individuals who oversee and coordinate a business’s employees and lead its operations to ultimately achieve the business’s objectives.

Employees

are individuals who are hired by a business to complete work tasks and support the achievement of its objectives.

Customers

are individuals or groups who interact with a business by purchasing and utilising its goods and services.

Suppliers

are individuals or groups that source raw materials, component parts, and processed materials and sell them to a business for use in the production of its goods and services.

The general community

is the individuals and groups who are impacted by a business’s operations and decisions, often because they are located in close proximity to the business.

Autocratic Management Style

Involves a manager making decisions and directing employees without any input from them

Persuasive Management Style

Involves a manager making decisions and communicating the reasons for those decisions to employees without their input

Consultative Management Style

Involves a manager seeking input from employees on business decisions but making the final decision themselves.

Participative Management Style

involves a manager sharing information with employees so that employees can participate in decision-making.

Laissez-Faire Management Style

involves a manager communicating business objectives to employees and giving them freedom to make decisions independently.

Communication

Is the skill of effectively transferring information from one party to another

Delegation

The skill of transferring work tasks and authority to subordinates further down in the business’s hierarchical structure

Planning

Is the process of determining a business’s objectives and establishing strategies to achieve these aims

Leadership

Is the skill of motivating others in order to achieve a business’s objectives

Decision-Making

The skill of selecting the most appropriate course of action from a set of plausible options

Interpersonal

The skill of creating positive interactions with other employees, to foster beneficial professional relationships

Official Corporate Culture

involves the shared views and values that a business aims to achieve, often outlined in a written format. Often expressed in things like slogans.

Real Corporate Culture

involves the shared values and beliefs that develop organically within a business and are practiced on a daily basis by its employees.