Business Management Unit 3 AOS 1 – Business Foundations Vocabulary

40 vocabulary flashcards covering business structures, planning, management skills, objectives, stakeholders, management styles, and corporate culture from the Unit 3 AOS 1 notes.

Sole Trader

A business structure owned and operated by one individual who has full control and unlimited liability.

Unlimited Liability

Legal responsibility where the owner’s personal assets can be used to cover business debts.

Partnership

A business structure owned by two to twenty people who share profits, risks, and have unlimited liability.

Incorporation

The process that establishes a business as a separate legal entity distinct from its owners (shareholders).

Private Limited Company

An incorporated business with at least one director and up to 50 shareholders, offering limited liability.

Public Listed Company

An incorporated business with unlimited shareholders whose shares are traded on the ASX, providing limited liability.

Limited Liability

Shareholders’ legal responsibility for company debts is limited to the value of their shares.

Social Enterprise

A business that sells goods or services to fulfil a social or environmental need while earning revenue.

Government Business Enterprise (GBE)

A business owned and operated by the government that aims to make a profit and deliver public services.

Strategic Planning

Long-term (2–5 years) planning that determines broad business objectives.

Tactical Planning

Medium-term (1–2 years) planning that sets actions to achieve strategic goals.

Operational Planning

Short-term, day-to-day planning that guides routine activities and tasks.

Decision-making

Selecting a course of action from several alternatives to solve problems or exploit opportunities.

Communication

The effective transfer of information between individuals or groups.

Delegation

Assigning authority and responsibility for tasks to employees lower in the hierarchy.

Interpersonal Skills

Abilities that enable positive interactions and relationships with others in the workplace.

Leadership

The process of motivating and guiding others to achieve business objectives.

Vision Statement

A declaration describing the long-term aspirations of a business.

Mission Statement

A statement outlining the present purpose, core objectives, and strategies of a business.

Business Objectives

Specific goals a business intends to achieve, such as profit, market share, or social impact.

Make a Profit

Business objective to ensure revenue exceeds total expenses.

Increase Market Share

Objective to grow a company’s percentage of total industry sales.

Shareholder Expectations

Goals relating to returns on investment such as capital gains and dividends.

Capital Gains

Profit earned when shares are sold at a higher price than their purchase price.

Dividends

Regular payments to shareholders distributed from a company’s profits.

Fulfil a Market Need

Objective of filling a gap in the market by meeting unmet customer demands.

Fulfil a Social Need

Objective of improving society or the environment through business activities.

Efficiency

How productively a business uses resources to generate outputs; linked to productivity.

Effectiveness

The extent to which a business achieves its stated objectives; linked to quality of outcomes.

Stakeholder

Any individual or group with a vested interest in the performance and activities of a business.

Internal Stakeholders

Stakeholders within the business, such as owners, managers, and employees.

External Stakeholders

Stakeholders outside the business, including customers, suppliers, and the general community.

Autocratic Management Style

Manager makes decisions and directs employees without seeking their input.

Persuasive Management Style

Manager makes decisions then explains the reasons to employees, but still seeks no input.

Consultative Management Style

Manager seeks employee opinions before making the final decision themselves.

Participative Management Style

Manager and employees share information and make decisions together.

Laissez-faire Management Style

Manager sets objectives but allows employees full freedom to make decisions independently.

Corporate Culture

The shared values, beliefs, and behaviours of a business and its employees.

Official Corporate Culture

The desired values and beliefs a business publicly states through documents and symbols.

Real Corporate Culture

The actual, lived values and beliefs practiced daily within the workplace.