business management key words

• sole trader: a business owned and run by one person, who is legally responsible for all aspects within
• partnership: a business owned by two or more people who share all profits and losses and workloads together
• private limited companies (LTD): incorporated business owned by between 1 and 50 people, shares cannot be freely sold or traded to members of the public
• public listed company: incorporated business that is owned by a minimum of 1 person and listed on a public exchange such as the ASX so they can be freely traded to members of the public, companies required to notify public of their performance
• social enterprise: business that with primary aim to address and improve a social or community cause, yet they still aim to make a profit to put towards their cause
• government business enterprise: business owned by the government that is set up to make a profit while carrying out government policies
• business objectives: are specific goals business is aiming to achieve in a specific period of time, they provide a sense of direction and purpose
• stakeholder: someone who has an interest in the success of a business or organisation
• ethics: the study of what is right and wrong, and how to act in a moral way
• profit: amount of money left after expenses have been deducted from revenues earned
• market share: proportion of sales a business has compared to total sales in the industry, measured by competitiveness
• efficiency: measure of how well a business is using its resources
• effectiveness: ability of business to achieve its objectives
• market need: the need for a product or service that a business can look to solve
• social need: businesses may look to satisfy a community cause and improve the situation
• shareholder expectations: shareholders expect a company to maximise profits and dividends
• social responsibility: the idea that businesses should consider the impact of their actions on society
• autocratic style: the leader makes all decisions and does not delegate authority to subordinates, instead tells of decision reached
• persuasive style: manager makes decisions themselves and aims to convince employees the decision is best
• consultative style: manager seeks feedback from employees before they make the final decision
• participative style: manager collaboratively makes decisions with employees
• laissez-fair style: managers gives trust and responsibility to employees in carrying out tasks and making decisions
• communication: the transfer of information from one person to another through verbal means, emails, reports
• delegation: manager passes on authority to an employee to carry out tasks
• planning: ability to set objectives and outline the strategies that help achieve them
• leadership: ability of manager to motivate and inspire others towards the achievement of objectives
• decision-making: choosing the best course of action from a range of alternatives
• interpersonal skills: the ability of managers to interact with others and build positive relationships
• negotiation: discussion aimed at reaching an agreement
• corporate culture: the shared values and beliefs of the people within a business
• official corporate culture: is the shared values and beliefs the business wants its people to display
• real corporate culture: the actual values and beliefs that are displayed by people in the business