Business

Management

Unit 3 - 4 – 2024
Transition
• The decisions I make in the class
will always be in-line to help you
achieve your goals
• Actions always have
consequences - own up and
take responsibility

• Respect your class mates

rights to learn
Introduction to the
VCAA Study Design

• Study Design
• Important to know the specific knowledge and skills you
can be examined on
• https://www.vcaa.vic.edu.au/curriculum/vce/vce-study-
designs/business-management/Pages/Index.aspx

• Past exam questions

• https://www.vcaa.vic.edu.au/assessment/vce-assessment/past
-examinations/Pages/Business-Management.aspx

• VCAA Command terms

• https://www.vcaa.vic.edu.au/assessment/vce-assessment/Pag
es/GlossaryofCommandTerms.aspx
Unit 3 - Overview
Explore the key processes and
Explore considerations for managing a business

Examine different types of businesses,

Examine objectives and their stakeholders

Staff Staff management strategies

Case Case studies (within the last 4 years)

Area of Study 1
Area of Study 1
Area of Study 3
Study Skills!

There will be lots of new vocabulary…how will you remember them?

Flashcards - https://www.brainscape.com/
A few different methods: Glossary in the back of your book
Unit 3: Managing a
business

In this unit students explore the key processes

and considerations for managing a business
efficiently
and effectively to achieve business objectives.
Students examine different types of businesses
and their respective objectives and
stakeholders. They investigate strategies to
manage both staff and business operations to
meet objectives, and develop an understanding
of the complexity and challenge of managing
businesses. Students compare theoretical
perspectives with current practice through the
use of contemporary Australian and global
business case studies from the past four years.
•Key knowledge

• types of businesses including sole traders, partnerships, private limited companies, public listed
companies, social enterprises and government business enterprises
• business objectives including to make a profit, to increase market share, to improve efficiency, to
improve effectiveness, to fulfil a market need, to fulfill a social need and to meet shareholder
expectations
• stakeholders of businesses including owners, managers, employees, customers, suppliers and the
general community
• characteristics of stakeholders of businesses including their interests and potential conflicts between
stakeholders
• management styles including autocratic, persuasive, consultative, participative and laissez-faire
• the appropriateness of management styles in relation to the nature of the task, time, experience of
employees and manager preference
• management skills including communication, delegation, planning, leadership, decision-making and
interpersonal
• the relationship between management styles and management skills
• corporate culture, both official and real

•Key skills

• identify, define, describe and apply business management concepts and terms
• interpret, discuss, compare and evaluate business information and ideas
• analyse case studies and contemporary examples of business management
• apply business management knowledge to practical and/or simulated business situations
Let’s get started…

• Key Knowledge:
• types of businesses including sole traders,
partnerships, private limited companies,
public listed companies, social enterprises
and government business enterprises
Business Structures
The way businesses are run and the role of the owner(s) varies
depending on how those owners wish to be involved in the various
legal implications.

Different legal structures offer different forms of ownership and legal

structure.

Australia operates as a mixed-market economy, where ownership,

resources, property are shared between private individuals and
government.
Background knowledge
– Intro to business

• A business is any activity

conducted by an individual/s to
produce and sell goods and
services that satisfy the needs of
society as well as making a profit

• A profit what is left after business

expenses have been deducted
from money earned from sales
(revenue)
Classifying a business
 A large-scale organization
employs 200 or more people,

Business size earns revenue in the millions,

or has assets of more than
$200 million.
• An organization is two or more people working together to
achieve an objective.
CHARACTERISTICS SMALL MEDIUM LARGE

BUSINESS TYPE • Milk bar • Motel • ANZ

• Woolworths
• Hair salon • Engineering factory • QANTAS
• Multinational corporation

NUMBER OF • Less than 20 • 20-199 • Over 200

EMPLOYEES
TYPE OF OWNERSHIP • Independently owned • Owned and operated by a • Public company
few
LEGAL STRUCTURE • Sole trader • Partnership • Public company
• Partnership • Private company
DECISION MAKING • Owner responsible • Owner responsible (it’s • Complex decision making.
• CEO
complicated!) • Board of Directors
• Layers of Management

SOURCE OF FINANCE • Owner • Owners/partners • Revenue in millions

• Asserts of more than $200 million

MARKET SHARE • Small • Medium sized within a • Large

• Dominates markets
• Local geographic area
Australia’s economic structure

Private Sector. The majority of businesses

are owned by private individuals, groups
or institutions. These are classified as
being in the private sector.

Public Sector. The part of the economy

operated by the government. These are
government-owned businesses.
Business Structures

• There are 5 main types of

businesses:
• Sole Trader
• Partnership
• Company
• Private Limited
Company
• Social Enterprise
Sole Trader

• Simplest and most inexpensive form of business in Australia

• Single owner who assumes total responsibility for managing the business.
• Runs the business under their own name or a registered business name
(RBN)
• Can operate using personal bank account and Tax File Number (TFN) of the
owner.

Risks:
• Has unlimited liability of the business. This means sole right to all profit
and capital as well as loss and debt.
• Financial records must be kept for 5 years.
• Without an RBN, the business identity can be lost to a company.
Partnership

• 2 to 20 people own the business

• Each partner is jointly liable for debts and losses (unlimited liability)
• Two types of partnerships:
• General partnerships (all partners equally responsible)
• Limited partnership (liability of one or more partners is
limited, and liability is proportional to the amount invested.
These passive investors are not involved in day-to-day
business operations.)
• Usually based on formal legal agreement regulated by Partnership
Act 1963. In the absence of a formal agreement, all partners are
considered equally liable.
• Partnerships do not have perpetuity. That is, never-ending. Once a
partner leaves, a new partnership is generally formed.
 • Partner details
• Commencement date & duration
• Description of the business and nature of
partnership
• Division of profits and remuneration
• Contribution of capital from each partner
• Responsibilities of each partner & authorities
(such as accessing bank accounts, limitations
or specific day to day roles, etc)
• How disagreements will be resolved (usually a
mention of arbitration)
Partnership • Provisions for admitting new partners
agreement • Termination clauses & procedures for division
of assets if the business is wound up
characteristics
Company
• Separate legal entity, achieved through the process
of incorporation.
• Incorporation – process of legally declaring a
corporate entity as separate from its owners
• Two types:
• Private Limited
• Public listed
• must be registered under a name that is not he same
as any other business (the Business Names
Registration Act 2011 sets out names that must be
included in a company name)
• Needs to be formed according to legislation
(Corporations Act 2001) and registered with
Australian Securities and Investments Commission
(ASIC).
• Must obtain an ACN (Australian Company Number)
Company

• Establishing a company means the business:

• Has the same rights as ‘a natural person’, including
requirement to lodge a tax return
• Has perpetuity – ongoing life
• Can incur debt and be sued
• Has shareholders who have limited liability to the value of their
shareholding
• Has company officers and directors who must comply with
legal requirements and are appointed to manage and control
the business
• Must be registered for Goods and Services Tax (GST) if the
turnover is $75,000 or more
• must keep financial records for at least 7 years from date of
transaction.
Company: Private
Limited
• Name includes ‘Proprietary Limited’ (Pty Ltd)
• This places some limitations on the company:
• Shareholders – company has a minimum
of two shares and is restricted to a
maximum of 50 shareholders
• Shares – Can only be traded with the
permission of other shareholders, before
any transaction can take place.
• Is a popular choice for expanding sole traders
or partnerships.
• Has added protection for owners, as it becomes
it’s own entity.
Company:
Public listed
• As businesses grow in the size of their operations,
they may look to the option of become a public
listed company as a means of increasing their
number of shares and access to more capital.
• To do this, it needs to issue a prospectus which is a
formal document inviting the public to purchase it’s
shares.
• No limit to the number of shareholders
• Is listed on the Australia Stock Exchange (ASX) and
shares can be publicly traded, with price being
dependant on public perception (think bitcoin!)
• These companies have the word ‘limited’ in their
title, annotated as Ltd.
Social Enterprises
• This business that uses strategies to maximise improvements
in human wellbeing or the environment, rather than to
maximise profits for the owners.
• Can be structured as ‘for-profit’ or ‘not-for’profit’.
• Main goals are to:
• Achieve social, cultural, community or environmental
outcomes
• To earn revenue
• Run like a business, but revenue is generally reinvested back
to the main goals of the business.
• Majority adopt a company structure to manage the day-to-
day operations.
• ATO encourages them to obtain Deductable Gift Recipient
(DGR) status to make all donations above $2 deductble.
Government Business Enterprises
• A GBE operated in the public sector.
• Provide essential community services; post, telecommunications, housing and transport are some
examples
• The Australian government (federal and state) have established businesses that operate by
adopting a company model.
• The government acts as a shareholder, with people appointed to management positions have
autonomy over the running of the business.
• Has reporting obligations to parliament and the public.
• Three characteristics that identify a GBE:
• Government controls the business
• Is principally engaged in commercial activities
• Has a legal personality separate to a government department
Industries

• INDUSTRY: is the classification of Primary Industry Secondary Tertiary Industry

groups of businesses related to Industry
the particular good or service they
Concerned with extracting Where raw Provision of services
produce resources directly from materials are (wholesaling, retailing
nature. turned into and transport)
finished or
e.g. OZ Minerals Ltd semi-finished e.g. Optus
products.

e.g. Kellogg
(Aust.) Pty Ltd
 • In your group, conduct some research and create a new
infographic for your room. It should contain the
following information:
• Title
• Features of the business structure
• Risks and/or legal liabilities
Business • New key terms & definitions
• Visual diagram that represents the structure
Structures - • An advantages & disadvantages table

Infographics https://business.vic.gov.au/business-information/start
-a-business/business-structures

Companies:
https://www.ato.gov.au/business/starting-your-own-
business/before-you-get-started/choosing-your-busin
ess-structure/company/