Business SEM 1

AOE 1 , 2 and 3

Small Business

business’s typically sourced from personal asserts 0-19 employees
sole trader or partnership

Medium business

multiple venues board of management 20-199
private listed, Pty LTD, partnership

Large business

200 plus employees multiple venues with plenty of shareholders, private listed, Pty LTD, partnership

Private sector

all for-profit businesses not owned or operated by the government

public sector

an organization operated by the government to provide public services and goods, not for profit

Business objective

a desired goal or outcome that a business wants in set period of time

Business vision

an aspiration that a business would like to achieve in the future, used as a guide for business actions

Mission statement

a description about the business and its purpose, and how it will operate

Examples of business objectives

make a profit

increase market share

fulfil a market need

fulfil a social need

meet shareholder expectations

For profit business

business with sole purpose of making money.

Profit is given back into the business to expand and can be distributed to shareholders and for personal use

Non profit business

goal to provide a need or service to community that does that exist to make a profit.

All profits are put into the business to expand and continue functioning

Sole trader business

A business that is owned by one person

Unincorporated business

Pos- in charge of everything

Neg- lack of funding

Incorporated business

a company that has been legally registered and recognized as a separate legal entity

Limited liability

Unincorporated business

a business structure where the business and its owner(s) are not legally separate entities

limited liability

business where owners personal asserts are protected

reduces personal risk exposure different legal entity

financial reports must be published

Unlimited liability

a business owner is personally responsible for all debts and obligations of their business, same legal entity

easier to set up less costs associated

harder to access funds investor hesitance

Partnership

operated by 2-20 owners

No separate legal entity and unlimited liability

Pos- more perspective for decision making

Neg- profits are split

Companies

a separate legal entity from its owners

Privately listed company

Separate legal entity

a company that is not publicly traded on a stock exchange

Publicly listed company

Separate legal entity

a corporation whose shares are traded on a stock exchange or regulated market, making it accessible for public investment

Primary Industry

an industry that produces energy or basic materials

Secondary Industry

an industry that transforms raw materials into finished goods

tertiary industry

provides services to consumers

Stakeholder

people or groups that interact in some way with the business due to vested interest in the business’s actions

Shareholder

Internal stakeholder

Those that have a direct relationship with the business. They exist within the business.

External Stakeholder

Those that have a direct relationship with the business. They exist within the business., not within

Stakeholder conflicts

conflicts arise when different groups have conflicting goals and interests

Cooperate social reasonability

the actions that a business has that is above and beyond their legal requirement

Triple bottom line

a measurement of a business’s economical ,environmental and social performance

How does CSR impact triple bottom line

CSR and triple bottom line are directly proportional to the performances of a business. A business that fulfils their CSR by doing deeds above and beyond their legal requirement will result in them performing will on their triple bottom line as they are fulfilling needs that are social and environmental not just for economical purposes

management

the art of how things in a business are being done

Communication (Comdac)

š– What type of communication is used?  Top-down, two-way.

Orientation (cOmdac)

šIs this style task procedure oriented or people-oriented?

Motivation (coMdac)

Does the manager tap into employee extrinsic or intrinsic motivation?

Decision Making (comDac)

Centralised or decentralised?  How are employees involved?

Authority(comdAc)

Does management delegate any important tasks to employees, or do they maintain total authority?

Control (comdaC)

Does the manager like to constantly monitor and micromanage employees?

Autocratic Leadership

a style when the manager will always tell the people below them what to do

Persuasive Leadership

a style when the manager will try to sell their decision of what to do

Consultative management

a styler when the manager will consult with staff members because making a decision

Participative management

a style when a manager will unite with all members before making a decison