Intro to Business Final Greiving
The 4 P's of Marketing
* Product * Price * Place * Promotion
The major financial statements:
-Balance Sheet: The financial statement that reports a firm's financial condition at a specific time. -Income Statement: The financial statement that shows a firm's bottom line - that is, its profit after costs, expenses, and taxes. -Statement of cash flows:Reports cash receipts and cash disbursements related to the three major activities of a firm: 1.Operations 2.Investments 3.Financing
Long-Term Financing purpose
-New product development -Replacement of capital equipment -Mergers or acquisitions -Expansion into new markets (domestic or global) -New facilities
Code of ethics
A code of ethics is a guide of principles designed to help professionals conduct business honestly and with integrity. A code of ethics document may outline the mission and values of the business or organization, how professionals are supposed to approach problems, the ethical principles based on the organization's core values and the standards to which the professional is held.
Business plan
A detailed written statement that describes the nature of the business, the large market, the advantages the business will have over competition
Corporation
A legal entity with authority to act and have liability apart from its owners
Entrepreneur
A person who risks time and money to start and manage a business
Job Analysis defined
A study of what employees do who hold various job titles.
Annual Report
A yearly statement of the financial condition, progress, and expectations of the firm.
Balance of trade, unfavorable and favorable
Balance of Trade - The total value of a nation's exports compared to its imports measured over a particular period Trade Surplus - When the value of a country's exports is more than that of its imports Trade Deficit - When the value of a country's exports is less than that of its profits
Benefits and Disadvantages of Sole Proprietorship
Benefits 1. Ease of starting and ending the business 2. Being your own boss 3. Pride of ownership 4. Leaving a legacy 5. Retention of company profit 6. No special taxes Disadvantages 1. Unlimited Liability - Any debts or damages incurred by the business are your debts, even if it means selling your home, car, or anything else. 2. Limited financial resources 3. Management difficulties 4. Overwhelming time commitment 5. Few fringe benefits (paid out of your pocket) 6. Limited growth 7. Limited life span
Double-entry bookkeeping
Bookkeepers record all transactions in two places so they can check one list of transactions against the other for accuracy.
From a strategic marketing viewpoint, a total product offer includes all of the tangible attributes of a good or service, and excludes any intangible attributes.
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Herzberg used the term hygiene factor to refer to an element of job content that was most important as a source of worker motivation.
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If you plan to meet face-to-face with a venture capitalist, it is not necessarily a good idea to present your business plan T/F
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It is generally true that "Business law establishes ethical behavior" T/F
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Marketers are concerned with selling goods and services, and therefore are not involved in designing the products their firm will sell.
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Once a business is established, it's almost impossible to change from one form of business ownership to another T/F
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Safety needs are placed at the lowest level in Maslow's hierarchy of needs.
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Since all businesses make a profit, starting a business is not risky T/F
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Since motivation comes from within an individual, there is little that managers can do to help motivate employees.
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Tax payments are important to the finance manager because they represent a cash inflow to a firm.
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The Enron scandal was notable because none of the company executives were convicted of crimes T/F
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The duties and responsibilities of a financial manager are virtually identical to the duties and responsibilities of an accountant.
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The income statement reports the difference between a firm's assets and it's liabilities as of a certain date.
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The internet has slowed small business participation in international markets T/F
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The owners of a corporation are known as general corporate partners T/F
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The primary factors involved in the marketing mix are sometimes called the 5 intangibles of marketing.
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There are two major financial statements prepared at the completion of the accounting cycle: the journal and the ledger.
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Today's workers place a lower priority on leisure time than they did in the past.
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When it comes to human resource management issues, the federal government generally has taken a "hands off" approach since the early 1960s.
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Primary Data
In depth information gathered by marketers from their own research
The 4 primary functions of management
Planning, Organizing, Leading, Controlling.
What is the accounting function?
Recording, classifying, summarizing and interpreting of financial events and transactions in an organization to provide interested parties needed financial information.
According to Maslow, people will try to satisfy lower order needs before they turn their attention to higher order needs,
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Accounting is somewhat like the scorekeeper in a sporting event, teaching every monetary activity that takes place within a business.
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Accounting provides financial information that can be useful to owners, creditors, suppliers, employees, and competitors of an organization.
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Adam Smith published his work "The Wealth of Nations" in 1776 and is considered the father of modern economics T/F
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Brand names can significantly impact consumer perceptions of a product.
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CFO is an abbreviation for Chief Financial Officer.
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Empowerment is most effective when employees are given the proper training and resources to respond.
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Florida College is an example of a nonprofit business T/F
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Goals tend to be broad and focus on the long-term while objectives tend to be specific and more short-term in their focus
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Herzberg fount that the sense of achievement employees experienced when they performed they job was an important motivator.
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Human resource management is the process of deciding the number and types of people your business needs, and then, recruiting, selecting, developing, motivating, evaluating, compensating and scheduling employees to achieve organizational goals.
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In evaluating a total product offer, value enhancers such as service, guarantees, reputation of the seller, etc. are as important to customers as the basic product.
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In the evolution of business, we are now in the Information-Based Era T/F
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It is impossible to run a company effectively without the ability to read and understand basic accounting reports and financial statements.
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Large, educated populations can contribute to an economy by offering knowledge and entrepreneurship T/F
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Marketing is the activity, set of instructions, process for creating, communicating, delivering, and exchanging offerings that have a value for customers, clients, partners, and society at large T/F
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Marketing research helps determine what customers have purchased in the past, what situational changes have occurred to change consumer preferences, and what consumers are likely to want in the future.
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Mike's Auto Repair works hard to find out what customers want and how to best meet their needs. Based on feedback from customers, Mike now provides a written estimate before any work is done, offers a more comprehensive guarantee than competitors, and calls customers after servicing their cars to make sure they are satisfied. These efforts suggest Mike is applying the concepts of customer relationship management.
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Much of a financial manager's day-to-day activities involve managing the short-term financial needs of the firm.
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One function of effective packaging is to protect the goods inside during handling and storage, as well as deter product tampering and theft.
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One very important responsibility of the finance department in both large and small businesses involves acquiring needed funds to operate the business.
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Secondary data should be gathered first because this type of information is less expensive obtain.
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The Civil Rights Act of 1964 did not do enough to discourage discriminatory practices in the workplace.
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The finance function involves funds acquisition and funds management.
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The first four steps in human resource planning all lead to the final step, which is the development of a strategic human resource plan.
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The fundamental accounting equation is as follows: Assets= Liabilities + Owner's Equity.
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The operating (master) budget identifies the funds (and the allocation of those funds) required to operate a business at a projected level of revenue.
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The overall objective of financial planning is to optimize the firm's profitability and make the best use of it's money.
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Theory Y managers assume that most people are capable of using a relatively high degree of imagination and creativity to solve a problem.
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Theory Z represents a hybrid of Theory X and Theory Y approaches to management based on studies of American and Japanese companies.
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Trade credit is the practice of buying goods now and paying for them later.
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Marketing
The activity, set of institutions and processes for creating, communicating, delivering, and exchanging offerings with value for customers, clients, partners, and society at large
Span of control
The optimal number of subordinates a manager supervises or should supervise
Human resource management defined
The process of determining human resource needs and then recruiting, selecting, developing, motivating, evaluating, compensating and scheduling employees to achieve organizational goals.
Bookkeeper duties
The recording of business transactions. Bookkeepers divide a firm's transactions into meaningful categories and post them into a record book or computer program called a journal.
Brand name
symbol, or design that identifies the goods or services and distinguishes them from competitors offerings
Division of Labor
the assignment of different parts of a manufacturing process or task to different people in order to improve efficiency.
Motivating basics; intrinsic and extrinsic
•Intrinsic Rewards: Personal satisfaction you feel when you perform well and complete goals. (ex. pride in performance, sense of achievement) •Extrinsic Rewards: Something given as a recognition of good work. (ex. pay raises, promotions, awards)
Financial Planning
•Involves analyzing short-term and long-term money flows to and from the company. •Three key steps of financial planning: 1.Forecasting the firm's short-term and long-term financial needs. 2.Developing budgets to meet those needs. 3.Establishing financial controls to see if the company is achieving its goals.
Flat and Tall organization structures
•Tall Organization Structures: An organizational structure in which the organization chart would be tall because of the various levels of management. •Flat Organization Structures: An organizational structure that has few layers of management and a broad span of control.
A stimulus package usually refers to the government spending more money to stimulate the economy T/F
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Empowerment
-Progressive leaders give employees the authority to make decisions on their own without consulting a manager. -Customer needs are handled quickly. -Manager's role becomes less of a boss and more of a coach.
Human resource planning - 5 steps
1) Preparing a human resource inventory of employees. 2) Preparing a job analysis. 3) Assessing future human resource demand. 4) Assessing future labor supply. 5) Establishing a strategic plan.
The marketing mix
1. Customer Orientation - Find what customers want 2. Service Orientation - Making sure everyone is focused on customer satisfaction 3. Profit Orientation - Focusing on the goods that earn the most profit
Marketing Research
1. Define the problem 2. Collect the research data 3. Analyze the data 4. Chose the best solution and implement
Sole Proprietorship
A business owned, and usually managed, by one person
A vision is the overall explanation of why an organization exists and where it is trying to head.
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What is entrepreneurship?
Accepting the risk of starting and running a business
Ethical behavior defined, described
Acting in ways consistent with what society and individuals typically think are good values. Ethical behavior tends to be good for business and involves demonstrating respect for key moral principles that include honesty, fairness, equality, dignity, diversity and individual rights.
Capitalism - definition, key attributes
All or most of the land, factories, and stores are owned by individuals, not the government, and operated for profit. 1. The right to own property 2. The right to own a business and keep all that business's profits 3. The right to freedom of competition 4. The right to freedom of choice
Definition of "Business"
An organization or economic system where goods and services are exchanged for one another or for money.
Economies of scale
Companies can reduce their production costs by purchasing raw materials in bulk.
Financial statements for for-profit organizations are the same format as the for nonprofit organizations.
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Free Trade Benefits
Drives economic growth, encourages trade, increased innovation
A multinational corporation is a company with a presence in several different nations T/F
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Ethical Dilemma
Ethical dilemmas, also known as a moral dilemmas, are situations in which there is a choice to be made between two options, neither of which resolves the situation in an ethically acceptable fashion. In such cases, societal and personal ethical guidelines can provide no satisfactory outcome
Secondary Data
Existing data that has previously been collected by sources like the government incurs no expense and is usually easily accessible
Exporting and Importing
Exporting - the sending of goods Importing - the receiving of goods
A disadvantage of corporations is that their charters are only valid for 99 years T/F
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A flat organization is less likely to respond quickly to customer needs.
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A major part of a bookkeeper's job is to work alongside the CEO to assist him or her in the development of business strategy.
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Because accurate and timely market information is vital to a firm's success, businesses should budget whatever it takes to get the best data available.
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Companies raising funds must choose either debt or equity sources, but not both.
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Management vs Leadership
Management: The process used to accomplish organizational goals through planning, organizing, leading and controlling people and other organizational resources. Leadership: Communicate a vision and rally others around that vision. Establish corporate values. Promote corporate ethics. Embrace change. Stress accountability and responsibility.
Venture Capital
Money that is invested in new or emerging companies that some investors believe have great profit potential.
Background investigation
Results of a background check typically include past employment verification, credit history, and criminal history. ... These checks are often used by employers as a means of judging a job candidate's past mistakes, character, and fitness, and to identify potential hiring risks for safety and security reasons
Revenues vs profits
Revenue - The total amount of money a business earns above and beyond what it spends for salaries and other expenses Profit - The amount of money a business earns above and beyond what it spends for salaries and other expenses
Risk and Reward
Risk - The chance and entrepreneur takes of losing time and money on a business that may not prove profitable * Not all businesses make the same amount of profit * Businesses take risks, but with great risks could come great profit
Goal setting theory
Setting ambitious but attainable goals can motivate workers and improve performance if the goals are accepted, accompanied by feedback, and facilitated by organizational conditions.
Major types of Businesses
Sole Proprietorship Partnership Corporation
Stakeholders
Stakeholders - All the people who stand to gain or lose by the policies and activities of a business and whose concerns the businesses need to address Who are Stakeholders? Customers, Employees, Stockholders, Suppliers, Dealers, Community Members, Media, Elected Officials, Bankers, Environmentalists
Supply and Demand
Supply - The quantities of products businesses are willing to sell at different prices Demand - The quantities of products consumers are willing to buy at different prices
A firm's annual report is a yearly statement of the financial condition, progress, and expectations of the organization during one year.
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A firm's balance sheet reports it's financial condition on a specific date.
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A key element of Frederick Taylor's approach was the time-motion study, which examined the tasks performed to complete a job and the time needed to complete each task.
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A mission statement outlines the fundamental purposes of an organization.
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Maslow's hierarchy of needs
Theory of motivation based on unmet human needs from basic physiological needs to safety, social and esteem needs to self-actualization needs.
Partnership
Two or more people legally agree to become co-owners of a business
Time value of money
the idea that money available at the present time is worth more than the same amount in the future due to its potential earning capacity. This core principle of finance holds that, provided money can earn interest, any amount of money is worth more the sooner it is received.