Shared Flashcard Set

Details

Exam 1
Business Fxns, Accounting
48
Business
Undergraduate 2
02/20/2008

Additional Business Flashcards

 


 

Cards

Term
 
lWhat is a business?
Definition
An organizational unit that has
la distinct strategy and
la manager
lwith sales and profit responsibility
Term
What is a business?
Definition

Any activity that seeks to

provide goods and services to others while operating at a profit

Term
Objectives of a business (4)
Definition

Survive

Grow

Profit

Social Responsibility

Term
Business Strategies
Definition
-How you plan to provide g&s while operating at a profit (4 approaches)
Term

4 Approaches to business strategy

Definition

Product-Market - who are you selling to?

Customer Value - good bargain, image, quality

Assets & Competencies - intelectual property, what do u have that's hard to duplicate

Functional Strategies - what do you do better than anyone else (logistics, acct, HR)

Term
4 parts of global business environment
Definition

Technological Env. (databases, barcodes, web)

Competitive Env. (cust svc, stakeholder care)

Social Env. (diversity, demog changes)

Economic & Legal Env. (tax & reg., ownership)

Term
Entrepreneur
Definition
A person who risks time and money to start and manage a business
Term
 
What are some of the challenges and opportunities you see for Cirque du Soleil in today’s dynamic business environment
Definition

Audience of higher income - expect more

Reinvent circus from ground up

 

Social Resp.: built HQ on landfill, holds learning camp for kids

 

motto: "Do different this time"

 

Innovative heating/cooling system

Term
Trends in Business
Definition
Rise of Information & Communication Technology
•Globalization
•Doing Business 24/7
•Educated Consumers
•Aging Workforce
•Increasing Diversity
•Pyramid vs. Web
•Self-Directed, Empowered Employees
•Communication Skills
•Decision-Making Skills
•Teamwork
•Leadership
•Continual Learning
Term
Largest # of businesses are in the form of:
Definition
Sole proprietorship (72%)
Term
Majority of sales are made by what form of business?
Definition
Corporations (make 81% of sales)
Term
Advantages of Sole Proprietorship
Definition
 
•Ease of start/end
•Be your own boss
•Pride of ownership
•Leave a legacy
•Retain profits
•No special taxes
Term
Disadvantages of Sole Proprietorship
Definition
 
•Unlimited liability
•Limited financial resources
•Management difficulty
•Time commitment
•Few fringe benefits
•Limited growth • 
Limited life span
Term
Types of Partnerships
Definition

General - General partners share responsibility

 

Limited - Passive investors support a general partner

Term

Master Limited Partnership

 

Limited Liability Partnership

Definition

MLP: Traded publicly, taxed as a partnership

 

LLP:

Term
Advantages of a Partnership
Definition
  More financial resources
• Shared management
Longer survival
• No Special Taxes
Term

Disadvantages of a Partnership

Definition
 
•Unlimited liability
• Division of profits
• Disagreements among partners
• Difficult to terminate
Term
Types of Corporations
Definition

Conventional 'C'

S Corporation

Limited Liability Company

Term
Private, Public, and Non-profit Corp.s
Definition

Private: not traded on any stock exchange

Public: Traded on one or more stock exnchgs

Non-Profit: Performs public svc, special tax considerations

Term
Advantages of a Corporation
Definition
 
•Limited liability
• More money for investment
• Size
• Perpetual life
• Ease of ownership change
• Ease of drawing talented employees
• Separation of ownership/mgmt
Term
 
•Extensive paperwork
• Double taxation
• Two tax returns
• Size
• Termination difficult
• Conflict with Stockholder & Board
• Initial cost
Definition
Term
World's Largest Corporations
Definition
 
1.Citigroup
2.General Electric
3.American Intl Group
4.Bank of America
5.HSBC Group
6.ExxonMobil
7.Royal Dutch/Shell
8.BP
9.ING Group
10.Toyota Motor
Term
Business structure--How owners affect Management
Definition

Owners >> (elect)

Board of directors >> (hire)

Officers >> (set obj.s & select)

Managers >> (supervise)

Employees

Term
S Corps
Definition
  • •No more than 100 shareholders
  • •Individual or Estates
  • •U.S. citizens or permanent residents
  • •1 class of stock
  • •<25% of income can be passive
  • •Benefits change with new tax rules
Term
LLC Advantages
Definition
 

•Limited Liability

•Tax Choice

•Flexible Ownership Rules

•Flexible Profit & Loss Distribution

•Operating Flexibility

Term
Disadvantages of LLC
Definition
 
•No Stock
•Limited Life Span
•Fewer Incentives
•Taxes
•Paperwork
Term
Franchisor offers to Franchisee...
Definition
 
•Assigns Territory
•May Provide Financial Aid/Advice
•Offers Merchandise/ Supplies at Competitive Price
 •Provides Training/Support
•Business Expansion Using O.P.M.
Term
Franchisee does...
Definition
 
•Pays Up-Front Costs
•Makes Monthly Payment to Franchisor
•Runs Business by Franchisor’s Rules/Procedures
•Buys Materials from Franchisor/ Approved Supplier
Term
Disadvantages of Franchises
Definition
 
•High start-up costs
•Shared Profit
•Management regulation
•Coattail effects
•Restrictions on selling
•Fraudulent franchisors
Term
Cooperatives
Definition
 
•Example: Farm Cooperative
•Owned & Controlled by People Who Use it
•Pool of Resources
•Economic Power
Term

Resumes:

written for...

the aim of...

Three C's

 

Definition

written for recruiters and screeners

aim is to get an interview

 

Three C's:

Clear

Concise

Correct

Term

Resume Format

(order)

(4-5 categories)

(address)

Definition

reverse chrono order

Heading, Objective, Education, Employment History, Additional Activities and Honors

GPA

Current & Permanent contacts

Term
Roles of a Manager
Definition

Planning

Organizing

Controlling
Leading

Term
Planning (4 things)
Definition
 
oEstablish vision and mission
oSet goals
oCreate objectives
oContinuously evaluate
Term
SWOT =
Definition

(Potential Internal...) 

Strengths

Weaknesses

Opportunities

Threats

Term
Planning Functions
Definition

Strategic - Broad, long-range, goal setting by top mgrs

Tactical - specific, short-range obj.s set by lower mgrs

Contingency - backup plans

Operational - setting work standards and sched.s

Term
Organizing does...
Definition

Designing and providing structure

Staffing

Term
Controlling (cycle of 5 steps)
Definition

Establish clear stndrds

Monitor/record performance

Compare perf. to stndrds

Communicate results

Corrective action?

Are stndrds realistic?

Term

Types of Leaders

Definition

Autocratic

Participative

Free rein

Term
Bases of Power (5)
Definition

Coercive

Legitimate

Reward

Referant

Expert

Term
How do leaders do it? (5)
Definition

Provide a vision,

Sell the vision--get others to buy in

Give direction and organize

Take ppl somewhere

Motivate and Inspire

Term
What do employees want? (top 3)
Definition

Full appreciation of work

Feeling "in" on things

Sympathetic to problems

Term

Comparative trading advantage

 

Absolute trading advantage

Definition

Sell things better, buy things better than competitors

 -

Access to commodity (S Africa w diamonds)

Term
Balance of trade, trade deficit
Definition

Exports - Imports

 

defecit = a negative trade balance

(importing more than exporting)

Supporting users have an ad free experience!