Business Management 3/4
2026 | Study Guide,
Practice Questions,
Answers, Rationales &
Exam Review | Complete
Ethics Study Guide
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
,autocratic management style Involves a manager has complete control and authority, has a high regard for
production and efficiency and low concern for employees
-Centralised
-1 way communication
Ads:
-Employees have defined roles
-Decision making done quicker
Disads:
-Employees feel less valued/involved
-Less room for creativity
communication the skill of effectively transferring information from one party to another
competitors other businesses or individuals who offer rival, or competing, goods or services to
the ones offered by the business
consultative management style A manager who listens to the opinion of the team members before making business
decisions
-Centralised
-2 way communication
Ads:
-More ideas generated from employees
-Increased employee involvement
Disads:
-Time consuming
-Some ideas are rejected
corporate culture the shared values and beliefs of a business and its employees
customers the people who purchase goods and services from the business, expecting high
quality at competitive prices
decision-making the skill of choosing the best course of action from a range of possible options
delegation The skill of assigning work tasks and authority to other employees who are further
down in a business' hierarchical structure
effectiveness the degree to which a business has achieved its stated objectives
efficiency how well a business uses resources to achieve objectives
employees the people who work for the business
government business enterprise (GBE) A business owned by one of the 3 tiers of government (local, state, federal), whose
aim is to carry out government policies to the public.
, incorporation A business that is seen as a seperate legal entity to its owner
interpersonal skills the skill of creating positive relationships and interactions with others
laissez-faire management style A manager who imposes little control over their group, leaving them to complete
their roles without input.
-Decentralised
-2 way communication
Ads:
-Strong job satisfaction/involvement
-Increased room for creativity
Disads:
-Internal leaders may arise
-Does not suit unskillful employees
leadership the skill of motivating and positively influencing others to achieve business
objectives
limited liability refers to when the shareholders in a company will not be held personally
responsible for the debts of that business
manager the person who has the responsibility for successfully achieving the objectives of
the business
mission statement expresses why the business exists, its purpose and how it will operate
objective a desired outcome or specific result that a business intends to achieve
participative management style A manager who shares decision-making power with group members
-decentralised
-2 way communication
Ads:
-Productivity increase
-Good employee-employer relationship
Disads:
-Time consuming
-Conflict can arise with differing opinions
2026 | Study Guide,
Practice Questions,
Answers, Rationales &
Exam Review | Complete
Ethics Study Guide
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
,autocratic management style Involves a manager has complete control and authority, has a high regard for
production and efficiency and low concern for employees
-Centralised
-1 way communication
Ads:
-Employees have defined roles
-Decision making done quicker
Disads:
-Employees feel less valued/involved
-Less room for creativity
communication the skill of effectively transferring information from one party to another
competitors other businesses or individuals who offer rival, or competing, goods or services to
the ones offered by the business
consultative management style A manager who listens to the opinion of the team members before making business
decisions
-Centralised
-2 way communication
Ads:
-More ideas generated from employees
-Increased employee involvement
Disads:
-Time consuming
-Some ideas are rejected
corporate culture the shared values and beliefs of a business and its employees
customers the people who purchase goods and services from the business, expecting high
quality at competitive prices
decision-making the skill of choosing the best course of action from a range of possible options
delegation The skill of assigning work tasks and authority to other employees who are further
down in a business' hierarchical structure
effectiveness the degree to which a business has achieved its stated objectives
efficiency how well a business uses resources to achieve objectives
employees the people who work for the business
government business enterprise (GBE) A business owned by one of the 3 tiers of government (local, state, federal), whose
aim is to carry out government policies to the public.
, incorporation A business that is seen as a seperate legal entity to its owner
interpersonal skills the skill of creating positive relationships and interactions with others
laissez-faire management style A manager who imposes little control over their group, leaving them to complete
their roles without input.
-Decentralised
-2 way communication
Ads:
-Strong job satisfaction/involvement
-Increased room for creativity
Disads:
-Internal leaders may arise
-Does not suit unskillful employees
leadership the skill of motivating and positively influencing others to achieve business
objectives
limited liability refers to when the shareholders in a company will not be held personally
responsible for the debts of that business
manager the person who has the responsibility for successfully achieving the objectives of
the business
mission statement expresses why the business exists, its purpose and how it will operate
objective a desired outcome or specific result that a business intends to achieve
participative management style A manager who shares decision-making power with group members
-decentralised
-2 way communication
Ads:
-Productivity increase
-Good employee-employer relationship
Disads:
-Time consuming
-Conflict can arise with differing opinions
