Business Ownership
What is a sole trader business?
A business owned and operated by one person.
Who is a stakeholder? Name 2.
Any person or group with an interest in the business. Shareholders, suppliers, managers, community, customers, competitors, employees.
Name two key management skills.
communication, delegation, planning, leading, decision-making, interpersonal skills.
What is a government business enterprise?
A government-owned business that operates commercially.
What is a business objective? Give an example.
A specific goal the business aims to achieve. Example is to make a profit.
What is a key feature of a partnership?
Shared profits and responsibilities between owners.
What does motivation in a business mean?
The drive to achieve business objectives.
What style allows staff full freedom in decision-making?
Laissez-faire.
What’s one example of a GBE in Australia?
Australia Post or VicRoads.
What does ‘limited liability’ mean?
Owners are only liable up to the amount invested.
What defines a public listed company?
A company with shares traded on the stock exchange.
Why is employee motivation important?
It boosts productivity and job satisfaction.
What is one benefit of effective communication?
Clear understanding of tasks and reduced conflict.
What is the main goal of a social enterprise?
To make a positive social or environmental impact while remaining financially sustainable.
What is market segmentation?
Dividing a broad market into smaller groups based on shared characteristics like age, income, or interests.
What is one advantage of a partnership structure?
Shared workload and combined expertise.
How might a business motivate staff non-financially?
Through recognition, training, or career development.
What are two benefits of a consultative style in a team setting?
Staff feel valued and contribute ideas.
How does a social enterprise use its profits differently from a traditional business?
It reinvests profits into achieving its social or environmental mission instead of distributing them to owners or shareholders.
What is performance-related pay? Give one reason a business might offer performance-related pay.
A financial reward given based on how well an employee performs. To motivate employees to achieve higher performance or targets.
What’s a key benefit of a private limited company over a partnership?
Limited liability protects owners' personal assets.
What could happen if stakeholder interests clash? Give an example.
Conflict may arise, affecting operations or reputation. Example - management and employees - pay.
What management style involves total decision-making by the manager? Name an advantage and disadvantage.
Autocratic management style. Ensures faster decision-making but establishes a stressful work atmosphere (little input from others is valued or sought after).
Give one example of a social enterprise and explain its purpose.
Example: Thankyou – it sells consumer products to fund projects that fight global poverty.
Describe how understanding demographics can help a business target its marketing effectively.
It allows the business to tailor products and advertising to specific groups based on age, gender, income, etc., improving customer appeal.