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| Providing needed goods and or services at a profit |
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| Set of activities directed at utilizing resources effectively in order to achieve on's goals and objectives. Management is both a profession and a combination of art and science |
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| Seven Management Functions |
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Definition
Planning
Organizing
Directing
Controlling
Straffing
Innovating
Representing |
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| An organized methodical way to approach a problem/situation in order to make decisions. FIRST, look at ALL the facts; examine and understand them; this can be the most time consuming and perhaps teh most tedious. THEN define the problem. Then look at alternatives/options and evaluate them. Finally come up with the decision or recommendation. If you have difficulty trying to figure out the problem- go back and look at all teh facts again. It means you have overlooked something and or we were not thorough enough |
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| Statistics that pertain to population |
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| Little or no government intervention. This attitude tends to lead to deregulation and or not implementing regulations |
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Is a business that is owned by one person but not in the form of a corporation
Advantages: Easy to start and or dissolve; retention of all profits; confidentiality; single tax base; control all decision making
Disadvantages: Limited life; unlimited liability; less ways to raise capital |
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Term
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Definition
Two or more people that own a busuness but not in the form of a corporation. All partners can be general partners but must have at least one general partner. The partnership as well as the general partners have unlimited liability.
Limited partners are limited to the amount of his or her investment.
Silent Partner is one who does not mind people knowing he or she is a partner but is not active in teh decision making process
Secret Partner is active in teh decision making process but does not want to be known publicly as a partner
Dormant partner is the combination of silent and secret |
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Term
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Definition
"An artificial being, invisible, intangible and exisiting only in the contemplation of the law" - Chief Justice John Marshall, 1819
Can be owned by one person or many people
Adv: Limited liability; perpetuity; more ways available to raise capital; separation of ownership and management; easy transferability of ownership
Disadv: Multiple tax base if not a Chapter S corporation; more complicated to start and dissolve especially if an open coporation; open corp. come under the SEC and are subject to greater laws |
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Definition
Stock is not available to general public
Open corporation stock is available to general public and comes under the AEGIS of the SEC |
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Domestic: Coporate office is in the same state in which it incorporated
Foreign" Corporate office is in a state different from where it incorporated
Alien: Firm whose corporate office is in a country different from teh country it incorporated |
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is ownership in a corporation
Equity also means ownership |
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Definition
| has voting privileges; each share of common stock has one vote |
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| does not unless it is voting preferred and it will be so stipulated in teh title. Preferred will receive dividends before common stock holders as long as the corporation declares a dividend |
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| Distribution of earnings to stockholders |
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| Is net profit less dividends paid to stockholders |
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Projecting what ahs occurred int ehpast into the future. Should never be used alone in forecasting because the past is not necessarily indicative of teh future. Therefore, not the best method to use in forecasting.
This is why it is important to keep abreast of the external factors so as to enable a manager to forecast and plan and make better and more effective decisions. |
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Definition
| the study of how resources are obtained, produced/manufactured and distributed within a social system |
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Limited Libaility Company. For of ownership that provides limited liability and single tax base.
Appropriate for businesses that have many partners, and the partners do not have to reside in the United States |
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Definition
| Statistics that pertain to population |
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are considered long term investments; bonds constitute a liability on the part of the coporation or entity issuing the bonds
Municpal Bonds: Bonds issued by states and or local governments. Municipal bonds tend to be exempt from federal income taxes and in some cases from state and local income taxes |
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| rate of return on investment; Maturity date is teh date the bonds become due and at which time the bondhilders receive the face value of the bonds |
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Definition
is $1,000; interest is simple not compounded; interest is paid twice a year
Discounted Bonds are bonds that sell below face value
Bonds that sell above face value are sold at a PREMIUM
If a bond sells at a discount, the yield would be higher than the interest rate
If a bond sells at a premium, the yield would be lower than the interest rate |
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Term
| Factors that can affect interest rates |
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Definition
| Federal Reserve; maturity date; the entity of issuing the bond; money supply |
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| means by which the government controls the amount of money available in teh economy by raising and lowering of interest rates |
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Definition
| government's influence on the amount of savings and expenditures accomplished by altering the tax structure and by changing the levels of government expenditures |
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