Task Word guide:
Evaluate: Discuss plus opinion/recommendation, which one is better, TS/Define/AD/DISV + Conclusion
Justify: Identify, Reasons(advantages), why this thing over another?
Analyse: Define, what/why has it happened, link to case study information
Compare: Define each, similar because…., however different because….
Describe: Identify/outline the characteristics, Name it, what is it, How does it work, Example
Discuss: Define key idea, 2 adv and disAv however… disadvantage
Explain: Define, what does it mean/what is it/ steps/, example, its purpose/why its important, link to case study
Distinguish: Define both terms, they are different because… List: on sentence Outline: Sentence plus how/why example
Types of Businesses: Sole Traders: A business owned and operated by one person. As a sole trader, the owner and business are considered the same legal entity, meaning they are unincorporated
and therefore have unlimited liability. AD: The owner has full control and decision-making power. There is a low risk of disputes as there is only one owner making decisions. DISAD: Unlimited
liability puts the owner’s personal assets at risk, as they can be seized to pay off business debts. • The knowledge and skills are limited to the owner, meaning the owner may not have appropriate
expertise in various areas.
Partnerships: A partnership is a business structure that is owned by two to 20 owners. A partnership structure is unincorporated, and all the owners have unlimited liability over business debts.
Generally, partnerships have a partnership agreement, which is a document signed by all the partners and includes partner details, distribution of profit, responsibilities of each partner, and
financial contributions from each partner. AD: • Greater range of expertise and ideas amongst numerous partners. • The financial and legal risks are shared between partners DISAD: Unlimited
liability means that the partners’ personal assets are at risk, as they can be seized to pay off business debts. • Conflicts could arise due to shared decision-making and personality clashes amongst
partners.
Private limited companies: A private limited company is an incorporated business structure that has at least one director and a maximum of 50 shareholders. The shareholders need to be
specifically selected and approved by the board of directors. The shareholders of the company have private ownership and limited liability over the business’s debts. This business structure is
identified by the term ‘proprietary limited’ (Pty Ltd.), which must be included after the business name of private limited companies. AD: There is limited liability for shareholders. • The business’s
existence is not threatened by the removal of one director DISAD: Complex reporting requirements, such as annual reports, need to be published for shareholders. • It is difficult to change
structure once a company has been established.
Public Listed Companies: A public listed company is an incorporated business that has an unlimited number of shareholders and lists and sells its shares on the ASX. A public listed company
requires a minimum of one shareholder and three directors to operate the business. All public listed companies have ‘limited’ (Ltd.) after their business name, which represents the limited liability
of its owners. A public listed company is listed on the Australian Securities Exchange (ASX) and any member of the general public can freely buy and sell its shares. AD: No permission is needed to
trade and sell shares. • The life of the company can live longer than the directors. DISAVD: Conflicts could arise through shared decision-making between directors. • There are complex reporting
requirements, such as annual financial reports, that need to be published to the public.
Social enterprises: A social enterprise is a type of business that aims to fulfil a community or environmental need by selling goods or services. Making a profit is still a fundamental business
objective of social enterprises so that they can continue to support their chosen social cause in the future. AD: The community benefits from the business’s activities. • The business can develop a
positive reputation as they are helping and contributing to society. DISAVD: Difficult to balance the achievement of financial objectives with social objectives. • May be difficult to obtain a bank loan
as the business does not solely focus on financial objectives.
Government business enterprise: A government business enterprise (GBE) is a business that is owned and operated by the government. A GBE operates in the public sector of the economy and
fulfils a specific purpose outlined by the government. AD: Delivers goods and services that help the community and the community’s needs. • Provides healthy competition to the private sector.
DISAVD: Governments and politicians can interfere and change the strategic direction of the business. Productivity may be lower than private-sector businesses as there tends to be a lack of
accountability in the public sector.
Business Objectives: Make a profit: Making a profit is a fundamental objective for businesses. Profit occurs when a business creates more
revenue than expenses. When businesses make a profit, it can be distributed to owners. For private limited and public
listed companies, profit is vital to pay shareholders a return on their original investment.
Increase market share: Market share is a business’s percentage of total sales within an industry. Therefore, when a
business increases its number of sales, it can consequently increase its percentage of market share. Generally, businesses
aim to increase their market share within their industry as it reflects how competitive they are.
Meet Shareholder expectations: Shareholders invest their own money into a business by purchasing a company’s shares.
This investment can facilitate the growth and development of a business, leading to different market opportunities.
Ultimately, shareholders expect a return on their original investment. This financial return is through the payment of
dividends or achieving capital gains.
Fulfil a Market need: To fulfil a market need is when a business fills a gap in the market, which involves addressing customer needs that are currently unmet or underrepresented by other
businesses in the same industry.
Fulfil a social need: To fulfil a social need is improving society and the environment through business activities. Society faces issues such as homelessness, drug or alcohol abuse, domestic violence,
discrimination against Aboriginal and Torres Strait Islanders, and ill-treatment of refugees and asylum seekers.
To improve efficiency: All businesses want to get the most out of their resources, aiming to maximise the use of their time, money, effort, employees, and materials
To improve effectiveness: For a business to be competitive, it must continuously set targets to achieve. Whether or not a business achieves its goals relates to its effectiveness. Effectiveness is the
extent to which a business achieves its stated objectives.
Stakeholders:
Owners: Owners are individuals who establish, invest, and have a share in a business, often with the goal of earning a profit from its operations. Owners are internal stakeholders and invest in the
business to provide its initial capital.
Managers: Managers are individuals who oversee and coordinate a business’s employees and lead its operations to ultimately achieve the business’s objectives. As managers work within the
business, they are internal stakeholders and are responsible for overseeing work tasks and progressing the business towards achieving its objectives.
Employees: Employees are individuals who are hired by a business to complete work tasks and support the achievement of its objectives. Without employees, a business would struggle to operate
as employees enable the simultaneous achievement of different business objectives by producing goods and services, engaging with customers, and assisting overall operations.
Customers: Customers are individuals or groups who interact with a business by purchasing and utilising its goods and services. As external stakeholders, customers engage with businesses that
provide goods and services that meet their needs and therefore gain their interest.
Suppliers: Suppliers are individuals or groups that source raw materials, component parts, and processed materials and sell them to a business for use in the production of its goods and services.
General Community: The general community is the individuals and groups who are impacted by a business’s operations and decisions, often because they are located in close proximity to the
business. These individuals do not necessarily purchase from the business but observe the outcomes of business activities on their environment and wellbeing
Management Styles:
Autocratic: Autocratic managers use one-way communication and make decisions alone. An autocratic management style involves a manager making decisions and directing employees without
any input from them. By using an autocratic management style, a manager retains centralised control over all business decisions. AD: Decision-making can be quick as it is only done by the
manager and no discussion or consultation is required with employees. • Work tasks can be completed quickly as management’s instructions are straightforward and structured, and employee
compliance is immediate. DISAD: All solutions and ideas come from the potentially limited views of the manager alone, as there is no contribution from employees. • Businesses lack the
opportunity to take into account a broader range of approaches and ideas from employees.
Persuasive: One way communication, Decisions made by Manager. A persuasive management style involves a manager making decisions and communicating the reasons for those decisions to
employees without their input. This is similar to an autocratic style of management, in that employees have little input. AD: Employees have clearly defined roles with less responsibility and risk, as
they only have to follow the manager’s instructions. • Employees may feel a greater sense of involvement and engagement in the business when given explanations of business decisions. DISAD:
Employee motivation may be low as they feel undervalued from being excluded from decision-making. • Low employee motivation can lead to increased sick leave due to unfulfillment and
detachment from the business and its goals.
Consultative: Consultative managers use two-way communication and make decisions alone. A consultative management style involves a manager seeking input from employees on business
decisions but making the final decision themselves.
Participative: e two-way communication to allow employees to participate in decision-making. A participative management style involves a manager sharing information with employees so that
employees can participate in decision-making.AD: The quality of decisions may improve because various perspectives from managers and employees are used. • Relationships between
management and employees may improve due to open two-way communication. DISAD: There is potential for conflict between employees and managers when there is a disagreement between
different views and opinions. • Some employees prefer to follow directions and may feel intimidated or uncomfortable contributing ideas.
Laissez-faire: Two way communication, Decisions made by employees. A laissez-faire management style involves a manager communicating business objectives to employees and giving them
freedom to make decisions independently. AD: Employees may have increased motivation as they feel empowered and trusted in a work environment that fosters creativity. Fosters an
environment in which creativity and innovation are valued, leading to a broader scope of possible decisions. DISAD: Loss of control by management since employees make final business decisions. •
Business objectives may not be met by employees due to a lack of direction from managers.
Appropriateness of management styles: Time, Experience of employees, nature of task, manager preferences.
Management Skills: Decision-making: is the skill of selecting a suitable course of action from a range of plausible options. Communication: is the skill of effectively transferring information from
one party to another. Delegation: is the skill of assigning work tasks and authority to other employees who are further down in a business’s hierarchical structure. Planning: Planning is the process
Evaluate: Discuss plus opinion/recommendation, which one is better, TS/Define/AD/DISV + Conclusion
Justify: Identify, Reasons(advantages), why this thing over another?
Analyse: Define, what/why has it happened, link to case study information
Compare: Define each, similar because…., however different because….
Describe: Identify/outline the characteristics, Name it, what is it, How does it work, Example
Discuss: Define key idea, 2 adv and disAv however… disadvantage
Explain: Define, what does it mean/what is it/ steps/, example, its purpose/why its important, link to case study
Distinguish: Define both terms, they are different because… List: on sentence Outline: Sentence plus how/why example
Types of Businesses: Sole Traders: A business owned and operated by one person. As a sole trader, the owner and business are considered the same legal entity, meaning they are unincorporated
and therefore have unlimited liability. AD: The owner has full control and decision-making power. There is a low risk of disputes as there is only one owner making decisions. DISAD: Unlimited
liability puts the owner’s personal assets at risk, as they can be seized to pay off business debts. • The knowledge and skills are limited to the owner, meaning the owner may not have appropriate
expertise in various areas.
Partnerships: A partnership is a business structure that is owned by two to 20 owners. A partnership structure is unincorporated, and all the owners have unlimited liability over business debts.
Generally, partnerships have a partnership agreement, which is a document signed by all the partners and includes partner details, distribution of profit, responsibilities of each partner, and
financial contributions from each partner. AD: • Greater range of expertise and ideas amongst numerous partners. • The financial and legal risks are shared between partners DISAD: Unlimited
liability means that the partners’ personal assets are at risk, as they can be seized to pay off business debts. • Conflicts could arise due to shared decision-making and personality clashes amongst
partners.
Private limited companies: A private limited company is an incorporated business structure that has at least one director and a maximum of 50 shareholders. The shareholders need to be
specifically selected and approved by the board of directors. The shareholders of the company have private ownership and limited liability over the business’s debts. This business structure is
identified by the term ‘proprietary limited’ (Pty Ltd.), which must be included after the business name of private limited companies. AD: There is limited liability for shareholders. • The business’s
existence is not threatened by the removal of one director DISAD: Complex reporting requirements, such as annual reports, need to be published for shareholders. • It is difficult to change
structure once a company has been established.
Public Listed Companies: A public listed company is an incorporated business that has an unlimited number of shareholders and lists and sells its shares on the ASX. A public listed company
requires a minimum of one shareholder and three directors to operate the business. All public listed companies have ‘limited’ (Ltd.) after their business name, which represents the limited liability
of its owners. A public listed company is listed on the Australian Securities Exchange (ASX) and any member of the general public can freely buy and sell its shares. AD: No permission is needed to
trade and sell shares. • The life of the company can live longer than the directors. DISAVD: Conflicts could arise through shared decision-making between directors. • There are complex reporting
requirements, such as annual financial reports, that need to be published to the public.
Social enterprises: A social enterprise is a type of business that aims to fulfil a community or environmental need by selling goods or services. Making a profit is still a fundamental business
objective of social enterprises so that they can continue to support their chosen social cause in the future. AD: The community benefits from the business’s activities. • The business can develop a
positive reputation as they are helping and contributing to society. DISAVD: Difficult to balance the achievement of financial objectives with social objectives. • May be difficult to obtain a bank loan
as the business does not solely focus on financial objectives.
Government business enterprise: A government business enterprise (GBE) is a business that is owned and operated by the government. A GBE operates in the public sector of the economy and
fulfils a specific purpose outlined by the government. AD: Delivers goods and services that help the community and the community’s needs. • Provides healthy competition to the private sector.
DISAVD: Governments and politicians can interfere and change the strategic direction of the business. Productivity may be lower than private-sector businesses as there tends to be a lack of
accountability in the public sector.
Business Objectives: Make a profit: Making a profit is a fundamental objective for businesses. Profit occurs when a business creates more
revenue than expenses. When businesses make a profit, it can be distributed to owners. For private limited and public
listed companies, profit is vital to pay shareholders a return on their original investment.
Increase market share: Market share is a business’s percentage of total sales within an industry. Therefore, when a
business increases its number of sales, it can consequently increase its percentage of market share. Generally, businesses
aim to increase their market share within their industry as it reflects how competitive they are.
Meet Shareholder expectations: Shareholders invest their own money into a business by purchasing a company’s shares.
This investment can facilitate the growth and development of a business, leading to different market opportunities.
Ultimately, shareholders expect a return on their original investment. This financial return is through the payment of
dividends or achieving capital gains.
Fulfil a Market need: To fulfil a market need is when a business fills a gap in the market, which involves addressing customer needs that are currently unmet or underrepresented by other
businesses in the same industry.
Fulfil a social need: To fulfil a social need is improving society and the environment through business activities. Society faces issues such as homelessness, drug or alcohol abuse, domestic violence,
discrimination against Aboriginal and Torres Strait Islanders, and ill-treatment of refugees and asylum seekers.
To improve efficiency: All businesses want to get the most out of their resources, aiming to maximise the use of their time, money, effort, employees, and materials
To improve effectiveness: For a business to be competitive, it must continuously set targets to achieve. Whether or not a business achieves its goals relates to its effectiveness. Effectiveness is the
extent to which a business achieves its stated objectives.
Stakeholders:
Owners: Owners are individuals who establish, invest, and have a share in a business, often with the goal of earning a profit from its operations. Owners are internal stakeholders and invest in the
business to provide its initial capital.
Managers: Managers are individuals who oversee and coordinate a business’s employees and lead its operations to ultimately achieve the business’s objectives. As managers work within the
business, they are internal stakeholders and are responsible for overseeing work tasks and progressing the business towards achieving its objectives.
Employees: Employees are individuals who are hired by a business to complete work tasks and support the achievement of its objectives. Without employees, a business would struggle to operate
as employees enable the simultaneous achievement of different business objectives by producing goods and services, engaging with customers, and assisting overall operations.
Customers: Customers are individuals or groups who interact with a business by purchasing and utilising its goods and services. As external stakeholders, customers engage with businesses that
provide goods and services that meet their needs and therefore gain their interest.
Suppliers: Suppliers are individuals or groups that source raw materials, component parts, and processed materials and sell them to a business for use in the production of its goods and services.
General Community: The general community is the individuals and groups who are impacted by a business’s operations and decisions, often because they are located in close proximity to the
business. These individuals do not necessarily purchase from the business but observe the outcomes of business activities on their environment and wellbeing
Management Styles:
Autocratic: Autocratic managers use one-way communication and make decisions alone. An autocratic management style involves a manager making decisions and directing employees without
any input from them. By using an autocratic management style, a manager retains centralised control over all business decisions. AD: Decision-making can be quick as it is only done by the
manager and no discussion or consultation is required with employees. • Work tasks can be completed quickly as management’s instructions are straightforward and structured, and employee
compliance is immediate. DISAD: All solutions and ideas come from the potentially limited views of the manager alone, as there is no contribution from employees. • Businesses lack the
opportunity to take into account a broader range of approaches and ideas from employees.
Persuasive: One way communication, Decisions made by Manager. A persuasive management style involves a manager making decisions and communicating the reasons for those decisions to
employees without their input. This is similar to an autocratic style of management, in that employees have little input. AD: Employees have clearly defined roles with less responsibility and risk, as
they only have to follow the manager’s instructions. • Employees may feel a greater sense of involvement and engagement in the business when given explanations of business decisions. DISAD:
Employee motivation may be low as they feel undervalued from being excluded from decision-making. • Low employee motivation can lead to increased sick leave due to unfulfillment and
detachment from the business and its goals.
Consultative: Consultative managers use two-way communication and make decisions alone. A consultative management style involves a manager seeking input from employees on business
decisions but making the final decision themselves.
Participative: e two-way communication to allow employees to participate in decision-making. A participative management style involves a manager sharing information with employees so that
employees can participate in decision-making.AD: The quality of decisions may improve because various perspectives from managers and employees are used. • Relationships between
management and employees may improve due to open two-way communication. DISAD: There is potential for conflict between employees and managers when there is a disagreement between
different views and opinions. • Some employees prefer to follow directions and may feel intimidated or uncomfortable contributing ideas.
Laissez-faire: Two way communication, Decisions made by employees. A laissez-faire management style involves a manager communicating business objectives to employees and giving them
freedom to make decisions independently. AD: Employees may have increased motivation as they feel empowered and trusted in a work environment that fosters creativity. Fosters an
environment in which creativity and innovation are valued, leading to a broader scope of possible decisions. DISAD: Loss of control by management since employees make final business decisions. •
Business objectives may not be met by employees due to a lack of direction from managers.
Appropriateness of management styles: Time, Experience of employees, nature of task, manager preferences.
Management Skills: Decision-making: is the skill of selecting a suitable course of action from a range of plausible options. Communication: is the skill of effectively transferring information from
one party to another. Delegation: is the skill of assigning work tasks and authority to other employees who are further down in a business’s hierarchical structure. Planning: Planning is the process
