BusMan U3 AOS1

• Sole Trader


  A business owned and operated by one person who is legally responsible for all aspects of the business
• Unlimited liability


  The business owner is personally responsible for all the debts of his or her business.
• Partnership

  A business owned by a minimum of two and maximum of 20 people
• Incorporation


  The process that businesses go through to become a registered company and separate legal entity
• Social enterprise

  A privately owned business that exists primarily to fulfil a vision that benefits the public or community rather than shareholders.
• GBE

  A type of business that is owned and operated by the government with the goal of making a profit
• Objective

  A desired goal, outcome or specific result that a business intends to achieve
• Strategy

  Outlines the actions taken in order to achieve an objective
• Business objectives

  • To make a profit
  • To increase market share
  • To improve efficiency
  • To improve effectiveness
  • To fulfil a social need
  • To meet shareholder expectations
  • To fulfil a market need
• Profit


  The amount of income or money remaining when expenses are deducted from revenue
• Market share

  The percentage of sales that one business had compared to competitors in the same industry
• Market need

  a gap in the industry that has not been satisfied by existing businesses
• Social need

  When businesses set a target to develop strategies which benefit the community
• Shareholder


  An individual or entity who has invested money in a business, hoping to earn dividends and increase the value of their shares
• efficiency


  How well a business uses resources to achieve objectives
• Effectiveness


  The degree to which stated objectives have been achieved
• Stakeholder


  An individual or group of individuals who have vested interest in the success of an organisation
• Owners


  A person or group of people that possess a company
• Managers


  The people who have the responsibility for successfully achieving the objectives of the business
• Employees


  The people who work for the business and who expect to be paid fairly, trained properly and treated ethically in return for their contribution to production.
• Customers


  The people who purchase goods and services from the business, expecting high quality at competitive prices
• Suppliers


  Businesses or individuals who supply materials and other resources to a business so that it can conduct its operations.
• an autocratic management style involves a manager making decisions and directing employees without any input from them
• A persuasive management style involves a manager making decisions and communicating the reasons for those decisions to employees without their input
• A consultative management style involves a manager seeking input from employees on business decisions but making the final decision themselves
• A participative management style involves a manager sharing information with employees so that employees can participate in decision making
• A laissez-faire management style involves a manager communicating business objectives to employees and giving them freedom to make decisions independently.
• Management skills are the abilities or competencies that managers use to help them to complete the tasks that are necessary for the achievement of business objectives.
• Communication is the transfer of information from a sender to a receiver. Communication can occur both within and outside the business.
• Delegation is where formal authority is passed down
• Planning is the process of determining a business's objectives and establishing strategies to achieve their aims
• Leading occurs when managers endeavour to influence or motivate people in the business to work to achieve the business objectives.
• Decision-making is the skill of selecting a suitable course of action from a range of plausible options.
• Personal skills are skills used by a manager when they have to deal with people on a personal level, such as lead, motivate, communicate, manage conflict and build team rapport.
• All business's have a corporate culture, which is the values, ideas, expectations and beliefs shared by members of the business.
• Official corporate culture is a set of values and beliefs that the business wants to present to the public as its own.
• Real corporate culture is the actual or prevailing culture that exists within a business.
• Corporate social responsibility (CSR)

  is the ethical conduct of a business beyond legal obligations, and the consideration of social, economic, and environmental impacts when making business decisions.
• Levels of planning :

  operational - short term

  tactical - medium term

  Strategic - long term
• 5 strategies of planning :

  1 - setting objectives

  2 - Analysing the present situation and future opportunities (SWOT)

  3 - Developing and evaluating alternatives

  4 - Implementing the plan

  5 - monitoring and reviewing results