FBLA Introduction to Business Procedures (Complete) [States]

Caveat Emptor

"Let the buyer beware."

Narrow Span

- A high level of interaction required - High frequency of new problems

Why are performance appraisals beneficial?

- Allows managers to make objective HR decisions. - Informs employees how well they're doing; how they can do better. - Helps the company monitor its selection, training, and development activities.

What are some air pollution problems?

- Aviation emissions of carbon dioxide are contributing to global warming. - Weather and geography contribute to air pollution.

Why do people think businesses should engage in social responsibility?

- Business is a part of society. Therefore, they cannot ignore social issues. - Businesses have the resources to tackle social issues. - Businesses can create a stable environment for long-term profitability. - It prevents increased government intervention.

What are some examples of internal influence that encourage ethical behavior?

- Code of Ethics - Employee Training

What are the disadvantages of a joint venture?

- Complexity of agreements. - High level of commitment required of all parties.

How can services be described?

- Consumed immediately - Provided when and where the customer desires - Usually labor intensive - Intangible

What are the advantages of a partnership?

- Easy to start - Capital is available - Combined skills and knowledge - Retention of profits - No special taxes

What are the advantages of a sole proprietor?

- Easy to start and cancel - Pride of ownership - Flexibility - No special taxes - Retention of profits

What are the disadvantages for a franchisor?

- Failure of the franchisee to operate properly - Disputes and lawsuits by franchisees over franchise terms

What are the disadvantages for a franchisee?

- Franchisor retains much control over activities

What are the disadvantages of a corporation?

- Government regulation and increased paperwork - Difficulty and expense in formation - Double taxation - Lack of secrecy

What are some examples of external influence that encourage ethical behavior?

- Governmental - Trade Association

What are some water pollution problems?

- High levels of pollutants still remain. - Cleanup is complicated and costly. - Acid rain from sulfur emissions of industrial smokestacks.

Human Resource Planning

- How many employees? - What qualifications?

What are some land pollution problems?

- How to restore contaminated land. - How to protect unpolluted land. - Shortage of landfill space for waste disposal. - Incinerators help solve the landfill problem, but produce toxic ash. - Other causes include strip-mining, cutting of forests, and using agriculture land for housing and industry.

What are the disadvantages for licensing?

- Image impacted if standards not upheld. - Original producer does not gain foreign marketing experience.

What are the advantages of a joint venture?

- Immediate market knowledge. - Reduced risk. - Control over the product.

What are some characteristics of a pure competition?

- It is easy to enter leave the market - All prices are basically the same

What the advantages of a corporation?

- Limited liability - Easy to raise capital - Specialized management

What are some characteristics of a monopoly competition?

- No competition - Great degree of power - Power of pricing - Hard to enter and leave the mark

Psychological Pricing

- Odd-number - Multiple-unit - single price for two or more units. - Bundle - complementary products at a single price - Everyday low prices (EDLPs)

What are the advantages for a franchisee?

- Opportunity to start a proven business with limited capital - Guaranteed customers - Available guidance

What are the five P's of entrepreneurship?

- Planning - Persistence - Patience - People - Profit

What are the 4 P's of the marketing mix?

- Price - Promotion - Place - Product

What are examples of selection?

- Resumes - Applications - Employment tests - Interviews - References - Social media

What do small businesses fail?

- Several years to profit - Time - Money - Over - Overexpansion

What are some characteristics of a monopolistic competition?

- Similar products, different characteristics. - Good degree of information (not perfect though). - Most common type of market. - Easy to enter and leave the market.

What are some characteristics of a oligopoly competition?

- Sizable investment needed to enter. - Compete on price and characteristics.

Wide Span

- Standard operating procedures - Few new problems

Why don't people think businesses should engage in social responsibility?

- The focus should be on providing a return on investments. - Business resources should be used to maximize profits, not solve social issues. - Problems affect society in general, so businesses should not be expected to solve them. - Social issues are the responsibility of government officials.

What are the disadvantages of a sole proprietor?

- Unlimited liability - Lack of capital - Limited management skills - Difficulty in recruiting

What are the disadvantages of a partnership?

- Unlimited liability - Management disagreement - Frozen investment

What are examples of external influence?

- Websites - Want ads

What are the advantages for a franchisor?

- Well controlled distribution of products - Leaves capital for expanded production and advertising - Motivated work force of franchisees

Board of Directors

A group of people elected by the stockholders of a corporation to set the policies for the corporation.

Organization

A group of people who work together to achieve goals. NOTE: May or may not be a business.

Minorities

A group of people with physical or cultural traits different from those of the dominant group in the society.

Monopolistic Competition

A large number of small businesses that sell similar products.

Autocratic

A leadership style when workers told what to do and how to do it.

Retention schedule

A list of how long each type of record should be kept

Chain of Command

A list of who reports or answers to whom.

Hard disk

A magnetic medium used to store electronic data that can be read by a computer

Operations Manager

A manager who manages systems that convert resources into goods and services.

Teleconference

A meeting of people in different locations conducted using telecommunicating equipment

Sales channel

A method of marketing products such as through retail stores or catalogs

Factory System

A method of production that brought many workers and machines together into one place.

Internal control

A method used by a business to safeguard assets

Embargo

A nontariff barrier that halts trading with a particular nation or in a particular product.

Import Quota

A nontariff barrier that limits the amount of a good that can be imported.

Currency Devaluation

A nontariff barrier that lowers the value of a nation's currency relative to the currencies of other nations.

Foreign Exchange Control

A nontariff barrier that restricts foreign currency.

Monopoly Competition

A one seller market.

Target Market

A particular group of consumers at which a product or service is aimed.

Limited Partnership

A partnership that includes at least one general partner who actively manages the company and accepts unlimited liability and one limited partner who gives up the right to actively manage the company in exchange for limited liability.

Stockholder

A person who owns a corporation's stock.

Data mining

A process in which a software program searches for significant patterns in data

The Right to Safety

A product must be safe and should warn us of dangers.

Affirmative Action Programs (AAP)

A program that requires companies doing business with the federal government hire minority, female, and handicapped employees.

Newsgroup

A publication of online articles and messages related to a certain topic

Interactive voice response

A recorded message accessed and directed by the use to provide or record information

Orientation

Acquainting new employees with the firm.

What are the four resources a business needs in order to be successful?

Human resources, material resources, informational resources, and financial resources.

Analytical Skills

Identify problems, generate alternatives and select the best solution.

Job Redesign

Involves the restructuring of a job, usually with the employees' involvement and agreement to make it more interesting.

What is true of centralized organization?

It gives all authority to top-level management

Benefits

Rewards in addition to compensation. Ex: Pay for time not worked, insurance packages, health insurance, parking, etc.

Demographic data

Statistics that describe a population such as age or race

Franchisor

The giver of the franchise.

Job Sharing

To share the responsibilities and duties of a single full time job with one or more other employees.

Inflection

Tone of voice

What are the three levels of management?

Top management, middle management, and first-line management.

Human Resource Developing

Training and development.

Simulation Training

Training that replicates the work environment.

Dual Branded Franchise

Two franchisors offer their products together. Ex: Baskin Robin's and Dunkin' Donuts

Vertical Merger

Two or more firms involved in different stages of producing the same good or service. Ex: Twitter + Apple

initiative

ability to act or think without prompting or guidance

proficiency

ability to perform at a satisfactory level

virtual training

allows people to simulate real situations using a computer

database program

allows you to collect, store, and organize data, such as contact information for you customers, suppliers, and vendors

documentimaging system

allows you to covert paper into electronic files

telecommuting

an arrangement that allows employees to work at home while communicating with the workplace by phone, fax, or modem

virtual reality

an artificial, three-dimensional visual world created by a computer

Money laundering

an ethical business issue that is associated with human relations;

extranet

an extension of the intranet of a compnay or organization that gives authorized outsiders controlled access to the intranet

decentralized organization

an organization that gives authority to a number of different managers

centralized organization

an organization that puts authority in one place, with top management

line and staff authority

an organizational structure with direct lines of authority as well as staff who advise line personnel

owner's equity

an owner's claims to the assets of a business

nonterritorial workspace

area not assigned to a specific person or task

accounting equation

assets = liabilities + owner's equity

current assets

assets that are either used up or converted to cash during the normal cycle of the business

hoteling

assigning temporary office workspace to workers as needed

online

available in electronic format such as on the Internet or an intranet

speech recognition software

computer programs that allow the user to input text and commands by speaking into a microphone

World Wide Web

computers on the Internet that use and transmit HTML documents

franchise

contractual agreement to use the name and sell the products or services of a company in a designated geographic area

Federal Trade Commission

created by the federal government to enforce antitrust laws

What is NOT an aspect of the organizing function?

creating strategies

liabilities

creditors' claims to the assets of a business

CRM software

customer relationship management software used for sales and marketing, which organizes contact information for current and prospective customers, and allows multiple users to track customers' buying habits

What term refers to management responsibility divided among managers?

decentralization

reliable

dependable, trustworthy

ergonocis

design factors for the workplace that are intended to maximize productivity by minimizing a worker's discomfort

Hardware

desktop computers, laptops, phones and wireless devices

departmentalization

dividing responsibility among specific units, or departments

financial statements

documents summarizing the changes resulting from business transactions that occur during an accounting period

What usually comes at the end of a resume?

education section

ezine

electronic magazine available on the World Wide Web

ERP system

enterprise resource planning system that pulls from both hardware and software programs to integrate various functions, such as distribution, shipping, and invoicing. It can be used to help a business owner figure out the amount of inventory needed to prevent overstocking.

total quality management

establishing and maintaining high standards in how work is done

projection

estimates or guesses about the future based on known data

financial forecast

estimates the financial outlook for a business over the next few years

mainframe

fast, powerful computer with a large storage capacity

What is the disadvantage of having a totally owned facility?

It's risky.

A ____ is a good opportunity to ask specific questions about the job opening, career paths, and the company.

Job interview

Which is NOT a common time-waster on the job?

Keeping a time log

Inventory Control

Keeping track of the amount of product on hand, sold, and on order.

Factors of Production

Land, labor, and capital.

Lecture Training

Large groups needing the same information.

Pure Competition

Large number of small that businesses that sell the same type of products with the same characteristics.

Articles of Partnership

Legal documents that set forth the basic agreement between partners. Ex: Duties of each partner, how much each partner will invest, and how the partnership can be dissolved.

Accession log

List of numbers assigned in a numeric filing system

Penetration Pricing

Low price for a new product; quickly build market share.

Postage meter

Machine that prints postage in the amount needed

How do you implement lean manufacturing?

Make business investments in facilities, equipment, and training.

Time Utility

Making products available when they're needed (this adds value).

What is a disadvantage to the line authority structure of management?

Managers sometimes lack the specialized help they need.

Lean Manufacturing

Manufacturing whose goal is to eliminate waste in all aspects of the process (saves time and money).

Coding

Marking a record to indicate how it was indexed

Speech recognition software

Computer programs that allow the user to input text and commands by speaking into a microphone

How can you control inventory?

Computerized systems.

Prejudgments

Conclusions reached before having full information

The Right to Courteous Service

Consumers are entitled to convenience, courtesy, and responsiveness from manufacturers and sellers.

The Right to be Informed

Consumers have access to complete information about a product before they buy it.

The Right to be Heard

Consumers have the right to complain about a product and to be listened to.

The Right to Choose

Consumers should have access to a variety of products and services at competitive prices.

Pollution

Contamination of Earth's land, water, and air.

Corporate Charter

Contract between the company and the state; state recognizes the artificial person.

Electronic imaging

Converting paper documents to pictures stored and displayed via computer

Micrographics

Converts documents to very small photographs for storage on microfilm

The laws that regulate which documents or other information can be legally copied are known as:

Copyright laws

Which statement below would be a good way to achieve your career goals?

Educate yourself, get experience in a field you think you would like, and consider an internship.

Personal digital assistant

Electronic device for storing contact information and scheduling appointments and tasks

Optical character reader

Electronic equipment that scans text in a form that can be used by computers

Human Resource Maintaining

Employee relations, compensation, and benefits.

Expectancy Theory

Employees believe the rewards for accomplishing a task are worth the effort.

How can a business be run informally?

Employees can share duties. This is typically for small companies

Flexible Time

Employees may choose whether to be at work.

Employee Ownership

Employees own the company by being stockholders.

Employee empowerment

Enabling employees to make decisions

Scheduling

Ensuring materials and resources are at the right place at the right time.

Quality Control

Ensuring that goods and services are produced in accordance with specifications (to make sure goods are suitable for sale).

At what level do most managers begin their careers?

Entry-level position

Fair Labor Standards Act (1938)

Established a minimum wage and an overtime pay rate.

Total quality management

Establishing and maintaining high standards in how work is done

Planning

Establishing goals and deciding how to accomplish them.

Medium/media

Materials or forms on or in which information may be stored

Seminar Training

Meetings to discuss and exchange ideas.

Equal Pay Act (1963)

Men and women who do equal jobs must be paid the same wage.

This level of management sets goals for specific areas of the business and decides what the employees in each area must do to meet those goals.

Middle Management

Gross salary

Money earned before any deductions are made

Petty cash

Money kept on hand for paying small expenses

Job Rotation

Moving employees from one specialized job to another.

Records disposition

Moving records to permanent storage or destroying records

Brand

Name, symbol, term, and design.

bureaucracy

formal organization with several levels of management

Demographic

gender, age.

GAAP

generally accepted accounting principles which are rules that provide a way to communicate financial information to others

What is a disadvantage to being a manager?

getting blamed when things go wrong

delegating

giving managers and employees the power to run things and make decisions

general managing

handling work time and tasks efficiently, creating and monitoring schedules, and tracking and reporting the progress of tasks or projects

What traits do employers value?

hard work, honesty, dependability, and an ability to finish tasks

accounting software program

helps organize your business finances, track outstanding invoices and figure out how much cash your company has available.

What is NOT part of the leadership function for a manager in charge of a project?

hiring employees

HTML

hypertext markup language, authoring language, used for World Wide Web and intranet documents

Developing a career plan

identify potential careers, research them, getting involved, set goals

objectively

in a detached manner without bias or prejudice

freelancer

independent contractors who work for others, usually on a project-by-project basis

IT

information technology; using computing, electronics, and telecommunications to process and distribute information in digital and other forms

An ideal leader should...

inspire others

telephony

integration of computer and telephone technologies

Each job in a career should build on what?

interests, knowledge, and experience

interactive

involving the user or receiver, exchanging information

What is a noise pollution problem?

Excessive noise due to traffic, aircraft, and machinery.

Electronic funds transfer

Exchange of money by sending bank records via a computer network

What are the advantages for licensing?

Expansion with little investment.

Goal

Expected result over a one-to-ten year period.

Objective

Expected result over a shorter period of time.

If you need to send a business document through the United States Postal Service and you need to get the document to the receiver in one day, which mail service would you use?

Express Mail

Incinerators

Facilities that burn trash at high temperatures.

What do businesses purchase after they sell their goods and services?

Factors of production.

360-Degree Evaluation

Feedback from everyone a worker interacts with on a daily basis.

Net pay

Final earnings amount after all deductions

networking devices

router, hubs, and stitches that tie workstations together and provide security features, such as firewalls

human resources does:

selecting, evaluating, and firing employees

career ladder

series of different jobs within a career

personality

the sum total of a person's feelings, actions, habits, and thoughts

accounts payable

the total amount a business owes to creditors

accounts receivable

the total amount of money owed to a business. It represents money to be recieved in payments after goods or services are sold on credit

telecommunications

the transmission of information over communication lines

analog

transmitted by a single that corresponds to a physical change such as sound

Totally Owned Facilities

Firm's own production and marketing facilities in one or more foreign nations.

Trading Companies

Firms that develop international trade and serve as intermediaries between international businesses. NOTE: Take title to products and move them from one country to another. Or, they just act as a trader.

Nontariff Barriers

Nontax policies that governments enact to discourage imports.

Communication Skills

Ability to speak, listen and write effectively.

Conceptual Skills

Ability to think in abstract terms.

corporation

company that is registered by a state and operates apart from its owners

Steps in Entering International Markets:

1. Find product 2. Find foreign markets for the products 3. Find out how to sell in each priority market 4. Set export prices and payment terms, methods, and techniques 5. Estimate resource requirements and returns. 6. Establish overseas distribution network. 7. Determine shipping, traffic, and documentation procedures and requirements. 8. Promote and sell (of course get paid). 9. Continuously analyze current marketing, economic, and political situations.

What are the 4 steps of behavior modification?

1. Identify 2. Measure 3. Reward 4. Measure

Steps for Planning Production:

1. Research and development 2. Design planning 3. Facilities planning 4. Operational planning

How do you develop a program for social responsibility?

1. Secure the commitment of top executives. 2. Plan the program. 3. Appoint a top-level executive as director to implement the plan. 4. Prepare a social audit.

Maslow's Hierarchy of Needs

1. Self-actualization 2. Esteem 3. Social 4. Safety 5. Physiological

What is the structure of a corporation?

1. Stockholders elect board of directors 2. Board of directors appoint officers 3. Officers hire employees.

General Agreements on Tariffs and Trade (GATT)

164 nations dedicated to reducing or eliminating trade barriers.

What % of corporation businesses are there in the U.S.?

19% (6 million)

How many types of partnerships are there?

2

patents offer protection for how long?

20 years

What % of sole proprietor businesses are there in the U.S.?

72% (23 million)

What % of partnerships businesses are there in the U.S.?

9% (3 million)

Fiscal year

A 12-month period used for financial accounting purposes

Modem

A Device that allows computer data to be transmitted via the telephone system

Franchise

A business operated under an authorization to sell or distribute a company's goods or services in a particular area.

Sole Proprietorship

A business owned by one person.

Partnership

A business owned by two or more people.

International Business

A business that buys, sells, and trades across national boundaries.

Small Business

A business that is independently owned and operated for profit and is not dominant in its field.

Corporation

A business that is owned by many investors.

Open Corporation

A corporation whose stock can be bought and sold by any individual.

Closed Corporation

A corporation whose stock is owned by relatively few people and is not sold to the general public.

Business Plan

A description of the goals of a business and how it will operate.

Organization Chart

A diagram that shows the relationships between personnel in an organization.

Routing slip

A document attached to an item that shows the names of individuals to whom the item should be sent

Referral slip

A document that accompanies items sent to another person and indicates a requested action

Requisition form

A document that has space for charge out information for a record

Voucher

A document that provides information and approval to make a payment

Environmental Protection Agency (EPA)

A federal agency that enforces laws affecting human and environmental health.

Oligopoly

A few large business that sell identical or very similar products. (Ex: Automobiles, oil industries, tire companies, etc.)

Multinational Enterprise

A firm that operates on a worldwide scale without ties to any specific nation or region.

Product Line

A group of closely related product items.

Local area network

A group of connected computers that are closest to each other

Wide area network

A group of connected computers that are separated by long distance

Social Audit

A report of what the organization has done and is doing with regard to social issues.

Income statement

A report that details the results of business operations for a certain period of time

Balance sheet

A report that presents the financial condition of a company as of a specific date

Bank reconciliation

A report used to compare bank and company account records

Sales Forecast

A report, usually prepared by marketing, predicting future sales of a product.

Flextime

A schedule that allows workers to choose work hours that fit their particular needs.

Code of Ethics

A set of guidelines for maintaining ethics in the workplace.

Record management

A set of procedures used to organize, store, retrieve, and dispose records

Job Description

A short few sentences that describes the position and duties a person has.

Endorsement

A signature on the back of a check authorizing a bank to cash or deposit the check

Microfiche

A small rectangular sheet of microfilm that contains a series of records arranged in rows and columns

Tactical Plan

A smaller scale plan developed to implement a strategy.

Relational database

A software program that allows the user to link data from a number of database files or tables to find information or generate reports

Technical Skills

A special skill to accomplish a specialized activity.

Magnetic tape

A storage medium for computer and other electronic data

Relationship Marketing

A strategy that focuses on keeping and improving relationships with current customers.

Capitalism

A system in which individuals own and operate the majority of businesses that provide goods and services.

Barter System

A system in which people buy and sell goods by exchanging one item for another; no money is involved.

Socialism

A system in which the government owns and controls the means of production.

Ethics

A system of moral principles.

Communism

A system where factors of production are owned and directed by the state.

Behavior Modification

A systematic program of reinforcement to encourage desirable behavior.

Equity Theory

A theory that states that people will be motivated when they perceive that they are being treated fairly.

File transfer protocol

A tool that allows files to be uploaded to or downloaded from a remote computer

Network Structure

A type of organizational structure viewed as less hierarchical , more decentralized, and more flexible than other structures.

Operational Plan

A type of plan designed to implement tactical plans.

server

central computer that shares data, files, and applications and allows you and your employees to access the Internet or use the same printer

electronic information transfers

ATMs

Interpersonal Skills

Ability to deal effectively with other people.

Role Playing Training

Acting out the roles of others.

Purchasing

Activities involved in obtaining required materials. Ex: Price, quality, and reliability.

Modulated

Adjusted to a proper level

Kerning

Adjusting the space between characters in text

World Trade Organization (WTO)

Administers the rules governing trade between its 164 members. Helps international business conduct their business and ensure that trade flows smoothly.

Licensing

Agreement where one firm permits another to produce & market its product and use its brand name in return for payment.

Human Resource Management

All activities involved in acquiring, maintaining, and developing an organization's human resources.

Operations

All activities involved in producing goods.

Core Time

All employees are expected to be at work.

Product Mix

All products that an organization sells.

Possession Utility

Allowing consumers to take legal ownership of a product (this adds value).

Strategic Alliance

An alliance formed as a part of a plan with important aims. NOTE: This does not create a 3rd party.

Command Economy

An economic system in which the government controls a country's economy.

Service Economy

An economy in which more effort is devoted to the production of services than to the production of goods.

Surge suppressor

An electrical outlet that controls unexpected sharp increases in electricity

Controller

An employee who oversees company finances

Morale

An employee's feelings about their job and about the firm itself.

Job Enlargement

An increase in job tasks and responsibilities.

Grapevine

An informal communication network along which unofficial information flows.

Extranet

An information network like an intranet but partially available to select outside users

Countertrade

An international barter transaction.

Release mark

An official approval to file a record

Matrix Structure

An organization structure that creates dual lines of authority (vertical and horizontal; the employees of the organization have more than one boss).

Which one of the following steps would NOT help a person learn to listen actively?

Assess the speaker's appearance

Networth (equity)

Assets - liabilities

Delegation

Assigning part of a manager's work and power to others.

Centralized

Authority is concentrated at the upper levels.

Decentralized

Authority is spread in the lower levels.

What is the benefit of countertrade?

Avoids restrictions on converting domestic currency to foreign currency.

Competition

Competing on sales for potential customers.

What do laws protect?

Competition, business agreements, and creative rights

Is it good or bad if imports are greater than exports?

Bad

Companies need to be sure that receipts and payments shown in their records are reflected also in the bank's record. You may have the task of comparing these records to prepare a:

Bank Reconciliation

Continuous improvement

Being alert at all times to ways of working more productively

Can a board of directors be on the inside or outside of the company?

Both

Communications

Business communications that are false, misleading, or deceptive are both illegal and unethical.

Overhead

Business costs not directly related to a product or service sold

Fairness and Honesty

Business people are expected to refrain from knowingly deceiving, misrepresenting, or intimidating others.

Organizational Relationships

Business people should put the welfare of others and the company above their own welfare.

What do marketing intermediaries do?

Buy products and resell them (retailers).

The easiest way to become a business owner is to:

Buy stock in a corporation

What type of economy is the U.S.?

Capitalist

What are the disadvantages of a matrix structure?

Chain of command conflicts, poor communications, and unclear responsibilities.

Form utility

Changing the nature of the good (putting it in a more attractive form for customers).

Satisficing

Choosing an alternative that is not the best, but it solves the problem.

Data processing

Collecting, organizing, analyzing, and summarizing data

Research and Development (R&D)

Combining old and new research and putting the knowledge to use.

Consensus

Common agreement or mutual understanding

To find the working capital of a business, calculate:

Current assets minus current liabilities

Social Responsibility

The duty to do what is best for the good of society. Note: Social responsibility costs money, but is also good for business.

Performance Appraisal

The evaluation of employees' job performance.

Common problems encountered when using the traditional file concept do NOT include:

Data independence

The process of collecting, organizing, analyzing, and summarizing data is known as:

Data processing

Indexing

Deciding how to identify each record to be filed

Operational Planning

Deciding the amount of products the facility will produce.

Strategic Plan

Designed to achieve long-term goals.

Process layout

Different operations required for different parts of a product.

Magnetic media

Disks or tapes used to store documents electronically

data processing

collecting, organizing, analyzing, and summarizing data

What are the advantages of a matrix structure?

Flexibility and higher morale.

How do small businesses provide competition?

Force larger firms to become more efficient and responsive.

What are the four types of utility?

Form, place, time, and possession.

What kind of leader does the most delegating?

Free-rein

Selection

Gathering information and choosing the most appropriate applicant (most appropriate vs. most qualified).

Revenue Tariffs

Generate income for the government. Ex: Barbados has no rice growers. So, they have a tariff of 40% on rice imported from South Korea.

Preferred Stock

Gives its holders certain privileges that common stockholders don't have. If a company pays dividends, preferred stockholders are paid before common ones. Unfortunately, they don't get to vote.

Intermediary

Go-between; mediator.

Is it good or bad if exports are greater than imports?

Good

Small Business Administration (SBA)

Governmental agency that assists and protects the interests of small businesses.

Franchising

Granting of a franchise.

For presentation purposes, a circular or oval arrangement is conducive for:

Group discussions and shared communications

Human Resource Acquiring

HR planning, job analysis, recruiting, selection, and orientation.

General managing

Handling work time and tasks efficiently, creating and monitoring schedules, and tracking and reporting the progress of tasks or projects

Place Utility

Having a product where customers can buy it (this adds value).

What is NOT true of a manager's job?

He or she should spend most of the time doing paperwork

What are the disadvantages of a network structure?

High turnover, low morale, and reliance on outside contractors.

Price Skimming

Highest possible price during the introduction.

Hypertext

Highlighted, underlined, or contrast-colored words or images that, when clicked, takes the user to another location

accounting system

collects, records, and reports financial transactions that affect the operation of a business

Product Refinement

Improving and adding features to a product.

Specialization

In production, a system in which each worker performs a single part of an entire process.

Demand > Supply

Increase the workforce.

Employee Empowerment

Increasing employee participation in decision making.

Whistle-Blowing

Informing the press or government officials about unethical practices within one's organization.

Nonprofit Organizations

Institution that functions much like a business, but does not operate for the purpose of generating profits. Ex: Church, schools, or charities.

Bonding

Insurance for financial loss due to employee theft or fraud

Goal-setting Theory

The theory that people will be motivated to the extent to which they accept specific, challenging goals and receive feedback that indicates their progress toward goal achievement.

Tickler file

Notes or records arranged by date for keeping track or future actions

What classifies a small businesses a small business?

Number of employees and average annual sales.

Information management

Organizing, maintaining, and accessing records or data

Small Business Fact:

Over 70% of small businesses expected to fail within first five years.

Hostile Takeover

Ownership change that occurs when one company purchases large quantities of outstanding stock in another company, thereby giving controlling interest to the acquiring company.

General Partnership

Partnership in which partners share equally in both responsibility and liability

Joint Venture

Partnership set up for a specific purpose for a short period of time. NOTE: A 3rd party is created.

Compensation

Payment employees receive for their labor. Ex: Hourly wage, salary, commissions, incentives, profit sharing, etc.

Commission

Payments bases on the price of items sold

Human Resources

People who provide labor and skills in a business.

Part-time Work

Permanent employment in which individuals work less than a standard work week.

Consulate

Person appointed by a government to serve its citizens and business interests in another country

Workstation

Physical area in which a worker performs a job

Direct deposit

Placing money in a bank account by electronic means rather than issuing a check

Contingency Plan

Plan for unexpected problems (backup).

Floppy disk

Portable magnetic medium used to store small amounts of computer data

Negotiated Pricing

Price through bargaining.

Courier service

Private mail delivery company

Proprietary information

Privately owned information, such as a design or formula, also called intellectual property

Recruiting

Process of attracting qualified job applicants.

Management

Process of coordinating people and resources to achieve the goals of an organization

Work simplification

Process of improving the procedures for doing work

Mass Production

Process of making large quantities of a product quickly and cheaply.

desktop publishing

Producing high-quality printed documents that include both test and graphics

Word processing

Producing written documents such as letters or reports by using software programs and computers

Dividend

Profit distributed over shareholders quarterly.

What should be determined to calculate the earning power of a business?

Profitability ratio

Title VII of the Civil Right Act

Prohibits discrimination in employment practices based on sex, race, color, religion, or national origin.

What are examples of internal influence?

Promotion and transfer.

Information processing

Putting facts or numbers into a meaningful and useful form

Demand

Quantity of a product buyers are willing to purchase.

Supply

Quantity of a product producers are willing to sell.

Microwave transmissions

Radio waves that carry data

Growth

Rapid sales increase; lower price, lower profit. More competition. Improve product or expand product line. Reduce price; broaden distribution (placement).

Currently, it is legal for your employer to:

Read your e-mail

Storyboarding

Recording and organizing ideas, as for a presentation

A computer program that allows electronic tracking and control of records is called:

Records management software

Demand < Supply

Reduce the workforce.

Charging out

Removing a record from the file and recording related information

A schedule that shows how long particular types of records should be stored in a company is called a:

Retention schedule

What is the formula for profit?

Sales revenue - expenses

Maturity

Sales still increasing at slower rate, will decline in later stage. Price competition, more segmented market. Redesign packaging. Encourage new product uses; increase promotional efforts and personal selling

What are major decisions for operational planning?

Select a time period, estimate a market demand, compare market demand to capacity, and adjust capacity to meet demand.

Dumping

Selling large quantities of goods in another country below prices in the home market.

Exporting

Selling or shipping materials to other nations.

Job Specialization/Division of Labor

Separation of activities into distinct tasks and assigning these to different people.

Preventive maintenance

Servicing equipment and replacing parts to prevent failure

What do the board of directors do?

Set corporate goals, develop plans, and are esponsible for firm's overall operation.

Stock

Share of ownership in a corporation.

Decline

Sharp decrease in volume, profits continue to fall. Cover costs, maintain market share, reduce inventory. Retain or eliminate product.

Accounts payable

Short-term debts a company owes

Accounts receivable

Short-term debts owed to a company by others, such as its customers

Conflict of Interest

Situation in which an employee must choose between a business's welfare and personal gain.

What type of economies are in command economy?

Socialism and communism.

Firewall

Software and hardware designed to prevent unauthorized users from gaining access to a computer or network

Project management programs

Software with advanced features for planning large or long-term tasks

What is the simplest for of business ownership?

Sole proprietor

Secondary storage

Storage media or devices outside the internal memory of a computer system

Ergonomics

Study of the effects of the work environment on the health of workers

Job Analysis

Studying jobs to determine their various elements and requirements.

Importing

Taking in materials into one's own country.

Tariff

Tax on a foreign product entering the country.

Limited Liability Company

Taxed like partnership. Avoids double taxation, offers limited liability

Protective Tariffs

Taxes placed on foreign goods, making them less attractive to consumers and thus protecting domestic industries from foreign competition

A(n) ____ is a meeting of people in different locations connected by a telecommunications system.

Teleconference

Syndicates

Temporary association to perform a specific task requiring a large amount of capital. Ex: Insurance and investments.

Periodic Discounting

Temporary reduction on a systematic basis.

Random Discounting

Temporary reduction on an unsystematic basis.

Utility

The ability of being useful (products). Ex: Moreton Bay pine is chiefly known by the utility of its wood.

Leadership

The ability to influence others.

Comparative Advantage

The ability to produce a good at a lower cost than another nation.

Absolute Advantage

The ability to produce something more efficiently than any other nation.

Productivity

The amount of production per worker per hour.

Capacity

The amount of products that can be produced in a given amount of time.

Business Ethics

The application of moral standards to business situations.

Corporate Officers

The chairman of the board, president, executive vice presidents, corporate secretary, treasurer, and any other top executive appointed by the board of directors

Horizontal Merger

The combination of two or more firms competing in the same market with the same good or service. Ex: AT&T + T-Mobile

File path

The compete location designation for an electronic file

Entrepreneurial Spirt

The desire to create a new business.

Design Planning

The development of a plan for converting an idea into an actual product.

Balance of Trade

The difference between a country's total exports and total imports. NOTE: The U.S. has a HORRIBLE balance of trade.

Departmentalization

The dividing of a organization into separate units.

groupware

communication, conferencing, and coordination tool

Motivation

The internal process that energizes and directs behavior.

Conglomerate Merger

The joining of firms in completely unrelated industries.

Domestic System

The manufacture of goods in the household setting; a production system that gave way to the factory system.

Quorum

The minimum number of members that must be present to conduct business at a meeting

How are team leaders like managers?

The motivate other team members

When a letter or memorandum extends beyond one page, the second and succeeding page heading should consist of:

The name of the addressee, the page number, and the date

Resolution

The number of dots per inch in printed text or images

Span of Management/Span of Control

The number of employees reporting to a supervisor.

Business

The organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society's needs.

Bureaucratic Red Tape

The overwhelming amount of government rules, regulations, and paperwork.

Market Price (equilibrium)

The price at which the amount that buyers wish to buy equals the amount that sellers wish to sell.

Common Stock

The primary form of ownership in a corporation. You get a vote in how to run the corporation. Each year the stockholders have a meeting where they vote on various issues and elect members to the Board of Directors.

Facilities Planning

The process of determining where products are to be produced.

Incorporation

The process of forming a corporation. NOTE: consult a lawyer

Reprographics

The process of making copies of graphic images, such as printed documents

Management Development

The process of preparing managers to assume increased responsibility in both present and future positions.

Job Design

The process of specifying the tasks, duties, and responsibilities of a job.

Accounting

The process of systematically collecting, analyzing, and reporting financial information.

Onboarding

The process that a company uses to integrate new employees into an organization.

Merger

The purchase of one corporation by another; essentially an acquisition.

Franchisee

The receiver of the franchise.

Profit

The remains after all business expenses have been deducted from sales revenue.

The Right to Consumer Education

The right to be fully informed about their rights as consumers.

Intonation

The rise and fall in voice pitch

Economics

The study of how wealth is created and distributed.

Microeconomics

The study of the decisions made by individuals and businesses.

Macroeconomics

The study on how the aggregate economy behaves. (Ex: Inflation, price levels, rate of growth, national income, GDP, and changes in unemployment.)

Economy

The system through which a society creates and distributes wealth.

Group dynamics

The way people interact and communicate within a group

What is the benefit of having a totally owned facility?

There is a complete control over operations.

Why is the U.S. a mixed economy?

They include both capitalism and socialism.

What do manufacturing businesses do?

They process various materials.

What does the government do in exchange for taxes?

They provide public services not provided by businesses. (Ex: Law Enforcement, Public Education)

What do service businesses do?

They provide services. (Used as it is purchased) (Ex: Haircuts, legal advice, tax preparation, etc.)

If something is at the tertiary level, it appears:

Third

Individual Branding

Use a different brand for each product.

How can a manager raise the odds that their commands will be accepted and obeyed?

Use formal channels of communication that assigns each organization member a specific one, the line of communication is as direct as possible, the complete chain of command is used to issue orders, the manager possesses adequate communication skills

Family Branding

Use the same brand for all or most of the products.

Audit

Verify or check facts or procedures

Product Layout

When products undergo the same operations in the same sequence (assembly line).

Modular workstation

Work area made up of parts that can be put together in various ways

Telecommuting

Working at home all or part of the work week.

On-the-job Training

Working under the supervision of an experienced employee.

Charter

Written grants of rights from a government

Are businesses that understand customer needs, and work to satisfy those needs successful?

Yes

Do small businesses produce more innovations that large firms?

Yes (2.5 times more) Ex: Airplane, heart valve, penicillin, etc.

intermediary

a business that moves goods from one business to another

organizational chart

a chart that shows how the firm is structured and who is in charge of whom

limited liability

a claim that holds a firm's owners responsible for no more than the capital that they have invested in it

suite

a collection of integrated application programs or software applications that work as a single program

intranet

a computer network withing an organiztion

database management

a computer program used to store data organized especially for rapid search and retrieval

spreadsheet

a computerized worksheet for entering and charting data

modem

a conversion device for digital and analog data

What kind of company would most likely hire a professional manager?

a corporation

statement of cash flows

a financial report that shows incoming and outgoing money during an accounting period (often monthly or quarterly)

Internet

a global computer network that connects many computer networks to allow information to flow freely around the world

trust

a group of companies that band together to form a monopoly

full-time job

a job that requires at least 40 hours of work each week

democratic leadership

a leadership style in which managers work with employees to make decisions

autocratic leadership

a leadership style in which one person runs everything and makes all decisions without consulting others

patent

a legal grant for the sole right to own and invention

priorities

a listing of items in order of importance

In a large company, to whom would an operational manager generally report?

a middle manager

trademark

a name, symbol, or characteristic that identifies a product

aptitude

a natural ability or talent

balance sheet

a report of the balances in all asset, liability, and owner's equity accounts at the end of an accounting period; gives a snapshot, as it essentially gives only one day of a company

income statement

a report of the revenue, expenses, and net income or net loss for an accounting period; typically over 12 months)

wearable computer

a small portable computer that is designed to be worn on the body during use

spyware

a software that tracks what a user does on the Internet

What is NOT necessary in a mentor

a specific knowledge of the mentoree's job

job objective

a statement about the type of job a job applicant wants

resume

a summary of an individual's skills education and work experience to persuade an employer to interview you

VoIP

a technology that allows users to make telephone calls using a high-speed Internet connection instead of standard telephone channels

facsimile

a technology used to send images (text, photographs, drawings) using telephone or VoIP channels

internship

a temporary paid or unpaid position that involves direct work experience in a career field

employability skills

basic skills you need to get a job, keep it, and do well at it

point-of-sale system

basically an electronic cash register that allows you to track sales

continuous improvement

being alert at all times to ways of working more productively

Behavioristic

benefit expectations.

cookies

bits of information about a computer user that are stored on the computer user's hard drive

e-commerce

business conducted electronically, as in making purchases or selling products via the World Wide Web

global marketplace

buying and selling of goods or services throughout the world

fixed assets

items of value that are held for more than one year

entry-level job

job suitable for a worker who is new to a job, field, or subject

controlling

keeping the company on track and making sure goals are met

Fortune 500 companies

largest companies listed in Fortune magazine

cover letter

letter that accompanies a resume and tells the employer about an applicant, explaining why the person is applying for a job

what three main types of authority are there?

line authority, staff authority, functional authority

Geographic

location.

Introduction

low customer awareness and acceptance; sales rise gradually; high marketing costs, low profits. Make potential customers aware of product.

top-level managers

managers responsible for setting goals, planning for the future, and leading and controlling the work of others

operational managers

managers who are responsible for the daily operations of a business

middle managers

managers who carry out the decisions of top managaement

capital

money or wealth needed to produce goods and services

ethics

moral principles by which people conduct themselves personally, socially, or professionally

code of ethics

moral standards or values and related behavior; also called code of conduct

innovation

new method or idea

mobile office

office temporarily located at a particular site or can move from place to place

management

the process of achieving company goals by planning, organizing, directing, controlling, and evaluating the effective use of resources

Which deals with non-management workers most often?

operational management

which managerial function comes first when executing business goals?

organizing

information management

organizing, maintaining, and accessing records or data

financial plan

outlines the financial projections about a new firm or venture; include the amount of money a business will need to start and operate

severance pay

payment made to an employee being dismissed from a job

Psychographic

personality.

What management task is part of the controlling function?

planning projects

hardware elements of a computer

processor, memory, input and output devices, and storage devices

software

programs and applications

assets

property or other items of value owned by a business; doesn't include insurance

RAM

random access memory that is used to hold all of the data and instructions required during operations

diversity

reflected in a workforce with people form a wide range of ethnic and cultural backgrounds

word processing

writing, editing, and producing documents through the use of a computer program

cash flow statement

shows how cash is flowing in and out of a business; used as a guide for business decisions like adding employees or planning major purchases

income or Profit and Loss Statement

shows where and how money goes in and out of a company for a period of time

microprocessor

small computer chip that acts as the brain of a computer

operating software

software that controls the operations of a computer, maintains files, runs software applications, and handles devices such as computer mice and printers.

business intelligence software

something a business owner might invest in that culls data from arious areas and delivers reports and analysis. It can be used to figure out what's driving profits and pinpoint areas that aren't running smoothly.

digital

sotred or transmitted by a process using groups of electronic bits of data

job shadowing

the act of following another worker for a few days on a job

cash flows

the amount of money that is available to a business at any given time, esp. to pay upcoming bills

virtual office

the capability to perform work activities away from a traditional office setting

copyright

the exclusive legal right given to artists to own their creations

networking

the practice of building informal relationships with people whose friendship could bring advanages such as job or business oppotunities

telecommute

the practice of working and communicating with others from a remote location

email marketing software

used to promote your business via electronic newsletters that helps you develop targeted, spam-free emails to send to your distribution lists

outsourcing

using outside sources to do tasks traditionally handled by internal staff

equity

value of a piece of property less the amount still owed on the money borrowed to purchase it; how much is actually owned

What does an organizational chart show?

who is in charge of whom in a firm

cooperative

willing to act or work with others for a common purpose