Principles of Management Module BM1012
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Questions and Answers

What is a significant disadvantage of a sole proprietorship?

  • Ease of decision-making
  • Tax benefits
  • Limited capital (correct)
  • Full control over business operations

    • A sole proprietor is liable for business debts while their personal assets are protected.

    False

    What are the two types of partnerships mentioned?

    General partnerships and limited partnerships

    In a sole proprietorship, the owner's decisions can be made quickly due to the lack of a __________ structure.

    <p>hierarchical</p> Signup and view all the answers

    Match the following characteristics with the appropriate business structure:

    <p>Sole Proprietorship = Unlimited Liability General Partnership = Equal management and liability sharing Limited Partnership = Limited liability for some partners Taxation = Profits passed through to personal income tax</p> Signup and view all the answers

    What is a primary advantage of LLCs?

    <p>Limited liability for owners</p> Signup and view all the answers

    Private Limited Companies can offer shares for sale to the general public.

    <p>False</p> Signup and view all the answers

    What are the two types of limited companies mentioned?

    <p>Private Limited Companies and Public Limited Companies</p> Signup and view all the answers

    In LLCs, profits pass through to members' personal __________ tax returns.

    <p>income</p> Signup and view all the answers

    What is a key feature of Public Limited Companies?

    <p>No consent required for share transfer</p> Signup and view all the answers

    Non-Profit Organizations primarily focus on making profits.

    <p>False</p> Signup and view all the answers

    Name one way Non-Profit Organizations generate revenue.

    <p>Donations, fundraising activities, or membership fees</p> Signup and view all the answers

    Match the following features with the corresponding type of limited company:

    <p>Private Limited Companies = Shares not for sale to the public Public Limited Companies = Shares can be offered to the public</p> Signup and view all the answers

    What is the primary objective of a business organization?

    <p>Profit maximization</p> Signup and view all the answers

    Sole proprietorships require significant legal formalities and paperwork to establish.

    <p>False</p> Signup and view all the answers

    What type of business organization is owned by a single individual?

    <p>Sole proprietorship</p> Signup and view all the answers

    In a sole proprietorship, the owner has _____ personal liability for business debts.

    <p>unlimited</p> Signup and view all the answers

    Match the following business organizations with their characteristics:

    <p>Sole Proprietorship = Owned by one person Partnership = Owned by two or more individuals Company = Legal entity separate from owners Non-profit Organization = Operates for a charitable purpose</p> Signup and view all the answers

    How is profit from a sole proprietorship taxed?

    <p>Personal income tax</p> Signup and view all the answers

    Group assignments account for 30% of the continuous assessments.

    <p>True</p> Signup and view all the answers

    What type of partnership requires partners to contribute capital and may exercise control?

    <p>General Partnership</p> Signup and view all the answers

    In a limited partnership, partners have unlimited legal liability.

    <p>False</p> Signup and view all the answers

    What is a key advantage of partnerships?

    <p>Shared responsibility and access to diverse skills and resources.</p> Signup and view all the answers

    In a general partnership, partners have __________ liability for business debts.

    <p>unlimited</p> Signup and view all the answers

    Match the type of partnership with its characteristics:

    <p>General Partnership = Contributes capital and expertise, unlimited liability Limited Partnership = Contributes only capital, limited liability, no management Unlimited Liability = Personal assets risked for business debts Limited Liability = Liability is limited to investment only</p> Signup and view all the answers

    Which of the following is a disadvantage of partnerships?

    <p>Conflict risks due to differing opinions</p> Signup and view all the answers

    Partnerships usually enjoy easier access to capital compared to solo proprietorships.

    <p>True</p> Signup and view all the answers

    What legislation governs the incorporation of certain organizations in this context?

    <p>Companies Act no 07 of 2007</p> Signup and view all the answers

    Signup and view all the answers

    Study Notes

    Course Expectations

    • Students are expected to be prepared for class, including reading materials and completing assignments.
    • Students should be ready to discuss and ask questions about course content.
    • Students need to focus on the class; cell phones, laptops, and tablets should be used for course-related work only.
    • Students should be respectful to classmates and the instructor.
    • Punctuality is expected; leaving early requires prior discussion with the instructor.
    • If a student misses a class, they are expected to review the missed lecture before the following class.

    Module Outline

    • Module Name: Principles of Management
    • Module Code: BM1012
    • Year/Level: 01
    • Credit Points: 03
    • Pre-requisites: None
    • Co-requisites: None
    • Methods of Delivery: Lectures (face-to-face), Tutorials, Laboratories
    • Course Website: http://courseweb.sliit.lk
    • Version No.: 2021-0
    • Semester: 01
    • Lectures: 2 hours per week
    • Tutorials: 1 hour per week
    • Laboratories: 0 hours per fortnight

    Module Description

    • Aim: Expose students to management concepts and theories to understand key management functions (planning, organizing, leading, controlling).
    • Learning Outcomes:
      • Identify the nature of a business organization.
      • Demonstrate the nature of management, managers, and their importance to contemporary business organizations.
      • Develop an understanding of managerial functions (planning, organizing, leading, controlling).
      • Apply knowledge in analyzing scenarios and real-world situations.
    • Assessment Criteria:
      • One group assignment
      • One individual assignment
      • A comprehensive exam covering lecture materials.

    Assessment Details

    • Mid-Semester Examination: 50% (covering LO1-LO3)

    • Assignments/Laboratories: 50% (covering LO1-LO4)

    • End of Semester Examination: 50% (covering LO1-LO4)

    • Total: 100%

    • Estimated Student Workload:

      • Contact Hours: 28 hours of lectures, 14 hours of tutorials, 0 hours of labs
      • Time Allocated for Assessments: 38 hours
      • Mid-Semester Examination: 0 hours
      • End of Semester Examination: 2 hours

    • Reading and Independent Study: 68 hours

    • Total: 150 hours

    • Module Pass Requirements: 45% or higher (to obtain at least a "C" grade)

    • Recommended Texts: Provided in the document.

    Learning Outcomes

    • At the end of the session, students will be able to:
      • Identify the nature of a Business Organization.
      • Identify the basic economic problem and need for management.
      • Learn the basic functions of management.

    What is a Business Organization?

    • A group of people working together to satisfy human needs and wants by producing goods and services with a common objective, often profit maximization.

    Principal Forms of Business Organizations

    • Sole proprietorship
    • Partnerships
    • Companies (corporations)
    • Non-profit organizations

    Sole Proprietorships

    • Ownership: Owned and operated by a single individual.
    • Setup: Simple legal formalities and paperwork.
    • Profit Retention: Owner retains all profits.
    • Liability: Unlimited personal liability for business debts.
    • Taxation: Profits are taxed as the owner's personal income.

    Advantages and Disadvantages of Sole Proprietorship

    • Advantages: Full control, ease of decision-making, tax benefits, flexibility.
    • Disadvantages: Unlimited liability, limited capital, limited expertise, continuity concerns

    Partnerships

    • Ownership: Two or more individuals share ownership, responsibilities, and profits.
    • Types: General partnerships (equal liability) and Limited partnerships (limited liability for some partners).
    • Agreement: Detailed roles and responsibilities laid out in a partnership agreement.
    • Taxation: Profits are passed through to partners' personal income tax.
    • Legal Personality: No legal personality.

    General vs. Limited Partnerships

    • General Partnerships: Partners contribute capital and expertise and are subject to unlimited liability.
    • Limited Partnerships: Partners only contribute capital and have limited liability; they don't manage or control the business.

    Advantages and Disadvantages of Partnerships

    • Advantages: Shared responsibility, complementary skills, capital access, tax benefits.
    • Disadvantages: Unlimited liability (in general partnerships), conflict risks, limited life span, and management issues.

    Limited Liability Company (LLC)

    • Blend of partnerships and corporations.
    • Limited liability for owners/members.
    • Flexible management structure.
    • Profits pass through to members' personal income.

    Types of Limited Companies

    • Private Limited Companies
    • Public Limited Companies

    Private Limited Companies

    • Maximum 50 shareholders.
    • Shareholders' consent required for share transfer.
    • No offers of shares to the general public.

    Public Limited Companies

    • No limit on the maximum number of shareholders.
    • Shares offered to the general public.
    • Ability to raise funds through debentures.

    Non-profit Making Organizations

    • Organizations focusing on specific social causes, serving members, or the public at large.
    • Revenue from donations, fundraising, activities, or membership fees, or products/services.
    • Aim to support their objective, typically not to generate profit

    Goal-Directed Behavior

    • Students are asked to list goals of a business organization.

    Types of Business Goals

    • Financial: Specific financial target.
    • Growth: Expand business.
    • Employee: Career advancements, work-life balance.
    • Process: Improve business procedures.
    • Social: Promoting diversity or setting sustainability goals.
    • Time-based: Applying a timeline to accomplish a task.

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    Principles of Management Lesson 01 PDF

    Description

    This quiz covers the course expectations and module outline for the Principles of Management BM1012. It includes details on student preparedness, participation requirements, and overall expectations for the semester. Make sure to understand the guidelines to excel in this course.

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