Business Management Unit 3 - Business Foundations (AOS 1)

Sole Trader - an individual owner of a business, entitled to keep all profits after tax has been paid but liable for all losses

Partnership - a legal form of business ownership where two or more people (partners) work together with a view of making a profit

General Partnership - all partners are deemed equally responsible for management of the business. Each has unlimited liability for debts and obligations.

Limited Partnership - liability of one or more partners is limited. These partners (passive investors) are not involved in day-to-day business operations. Liability is limited in proportion to the amount invested.

Company - a separate legal entity (incorporated body) that is subject to the requirements of the Corporations Act 2001, owned by shareholders who have limited liability, run by directors and has perpetual succession

Private Limited Company - A company whose shares and related rights or obligations are not offered to the public in any way and are only private

Public Listed Company - A company whose shares are traded freely on a stock exchange

Government Business Enterprise - a business that is government owned and operated. they seek to run profitably by controlling costs and selling their goods and services at a price to cover costs.

Social Enterprise - private sector business that distributes profit to benefit the community rather than individual shareholders

Business Objectives - The stated, measurable targets to determine how a business will achieve its goal

SMART Principle - objectives or goals are specific, measurable, attainable or achievable, relevant or realistic, and timely or timebound

Stakeholders - An individual or a group that has a direct or vested interest in the activities of a business

Shareholders - owner of a company

Corporate Social Responsibility (CSR) - A management concept which involves the business considering the interests of society by taking responsibility for the impact of their activities on all stakeholders whether it may be economic,social or environmental

Management Styles - the manner and approach of providing direction, implementing plans and motivating people

Autocratic - management style where all decision-making is centralised, there is little delegated authority and communication is one-way - downwards

Persuasive - managers make the decisions, then persuade workers of the benefits of those decisions

Consultative - Manager consults with employees when discussing an issue; however, the ultimate decision is made by the manager based on the suggestions and input received

Participative - Decision making is performed as a team with management and staff working together, with the manager retaining responsibility and accountability

Laissez-Faire - a leadership style that leaves the majority of decision-making and running of the business operation to the employees

Centralised Decision Making - Management makes decisions and passes on directions to those below it in a hierarchy; communication is downward and worker participation in decision-making is non-existent

Decentralised Decision Making - workers are given responsibility for decision-making in their own areas

Corporate Culture - system of shared values and beliefs of people within a business

Official Corporate Culture - Desired culture that a business wishes to establish

Real Corporate Culture - Actual or prevailing culture that exists within a business