BA 101 Exam 2
Comprehensive Employment and Training Act of 1973
provided funds for training unemployed workers
Trade Credit
the practice of buying goods and services now and paying for them later
Human Resource Planning Process:
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
Financial Managers Must:
1. Stay abreast of changes or opportunities in the finance 2. Analyze the tax implications of managerial decisions to help minimize the tax the business must pay
Three of the Most Common Reasons a Firm Fails Financially:
1. Undercapitalization (insufficient funds to start the business) 2. Poor control over cash flow 3. Inadequate expense control
Information Technology
Allows managers to handle more information
Line Organization
An organization that has direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with all people reporting to only one supervisor.
Bureaucracy
An organization with many layers of managers who set rules and regulations and oversee all decisions
Flat Organizational Structure
An organizational structure that has only a few levels of management and a broad span of control
Debt Financing
Borrowing money the company has a legal obligation to repay; firms can borrow by either getting a loan from a lending institution or issuing bonds
Supply Chain
Consists of all the linked activities various organizations must perform to move goods and services from the sources of raw materials to ultimate consumers (Suppliers' Plants —>Manufacturers—>Wholesalers—>Retailers—>Consumers)
Organizaing
Determining what work needs to be done
Cash Budget
Estimates cash inflows and outflows during a particular period like a month or quarter
A 360-Degree Review
Gives managers opinions from people at different levels to get a more accurate idea of the worker's ability
Self-Managed
Groups are empowered to make decisions without management approval
Information Utility
Intermediaries open two-way flows of information between marketing participants
Service Utility
Intermediaries provide fast , friendly service during and after the sale and by teaching customers how to best use products overtime
Secured Bond
Issued with some sort of collateral, such as real estate, equipment, or other pledged assets
HR Planning
Job analysis, job description, job specification
Capital Expenditures
Major investments in either tangible long-term assets such as land, buildings, and equipment or intangible assets such as patents, trademarks, and copyrights
Time Utility
Making products available when consumers need them
Corporate Distribution System
One firm owns all the organizations in a channel of distribution
Age Discrimination in Employment Act of 1967
Outlawed employment practices that discriminate against people 40 and older
Ban-the-Box Rule
Prohibits asking questions about convictions on job applications and initial interviews
Americans with Disabilities Act of 1990
Prohibits employers from discriminating against qualified individuals with disabilities in hiring, advancement, or compensation and requires them to adapt the workplace if necessary
Matrix Organization
Project Managers are in charge of teams made up of members of several departments
Credit Cards
Provide a readily available line of credit that can save time and the likely embarrassment of being rejected for a bank loan
Full-Service Wholesalers
Provide a sales force to sell the goods, maintain inventory, communicate advertising deals, arrange the transportation of goods, and provide capital and market information, and they assume the risk for the goods
Intensive Distribution
Puts products into as many retail outlets as possible, including vending machines (convenience goods)
Lateral Transfer
Reassigning an employee to a new job at the same level
Online Retailing
Selling goods and services to ultimate consumers online
Finance
The function in a business that acquires funds for the firm and manages those funds within the firm
Risk/Return Trade-Off
The greater the risk a lender takes in making a loan, the higher the rate of interest
Operating Budget
Ties together all firms other budgets
Temporary Worker
Workers paid by temporary employment agencies
Current Drivers of Change:
-More global competition -Declining economy -Faster technological change -Customer expectations
Financial Planning Steps:
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 whether the company is achieving its goals
Weber's Principles of Organization:
1. Job descriptions 2. Written rules, decision guidelines, and detailed records 3. Consistent procedures, regulations, and policies 4. Staffing and promotion based on qualifications
Ways to Structure an Organization
1. Line organizations 2. Line and Staff organizations 3. Matrix-Style organizations 4. Cross-Functional Self-Managed teams
Steps For a Bank Loan:
1. Make Application 2. Determines whether to make loan or not based on the risk of the loan 3. The higher the risk, the higher the interest rate
Operating Funds Are Needed For:
1. Managing day-by-day needs of the business 2. Controlling credit operations 3. Acquiring needed inventory 4. Making capital expenditures
Management Training Programs:
1. On the job positions 2. Understudy positions 3. Job rotation 4. Off the job courses and training
Line of Credit
A given amount of unsecured short-term funds a bank will lend to a business, provided the funds are readily available
Factor
A market intermediary that agrees to buy the firm's accounts receivable, at a discount for cash
Shareholder Value
A measure of company performance that combines the size of dividends with the stock price
Financial Control
A process in which a firm periodically compares its actual revenues and expenses with its budget/costs
Goal
A productive workforce that has the knowledge, skills and abilities to pursue the company's strategy
Term-Loan Agreement
A promissory note that requires the borrower to repay the loan with interest in specified monthly or annual installments
Job Description
A summary of the objectives of a job, the type of work to be done, the responsibilities and duties, the working conditions, and the relationship of the job to other functions
Job Analysis
A summary of what is done by employees who hold various job titles
Commercial Paper
A type of short-term financing available to large corporations that need funds for just a few months and prefer not to have to negotiate with a commercial bank
Organization Chart
A visual device that shows relationships among people and divides the organization's work; it shows who reports to whom.
Job Specifications
A written summary of the minimum qualifications required of workers to do a particular job
Equal Employment Opportunity Act of 1972
Added as an amendment to Title VII
Staff Personnel
Advise and assist line personnel in meeting their goals, and include those in marketing research, legal advising, information technology, and human resource management
Performance Appraisal
An evaluation that measures employee performance against established standards in order to make decisions about promotions, compensation, training or termination
Financial Planning
Analyzing short-term and long-term money flows to and from the firm. It's overall objective is to optimize the firms profitability and make the best use of its money
Part-Time Workers
Anyone who works less than thirty-five hours per week
Just-In-Time Inventory Control
Can reduce the funds a firm must tie up in inventory
Economies of Scale
Companies can reduce their production costs by purchasing raw materials on bulk
Job Specialization
Dividing tasks into smaller jobs
Division of Labor
Dividing up organizational tasks
Fair Labor Standards Act of 1938
Established a minimum wage and overtime pay for employees working more than 40 hours a week
National Labor Relations Act of 1935
Established collective bargaining in labor-management relations and limited management interference in the right of employees to have a collective bargaining agent
Civil Rights Act of 1964
For firms with fifteen or more employees, outlawed discrimination in employment based on sex, race, color, religion, or national origin
Flextime Plans
Gives employees some freedom to choose which hours to work, as long as they work the required number of hours or complete their assigned tasks
Cross-Functional Self Managed Teams
Groups of employees from different departments who work together on a long-term basis
Merchant Wholesalers
Independently owned firms that take title to the goods they handle
Affirmative Action
Intended to "right past wrongs" by increasing opportunities for minorities and women
Possession Utility
Intermediaries do whatever is necessary to transfer ownership from one party to another
Place Utility
Intermediaries place products where people want them
Job Sharing
Lets two or more part-time employees share one full-time job
Contractual Distribution System
Members are bound to cooperate through contractual agreements
Equal Pay Act of 1964
Men and women be paid the same wages for doing equal work
Mass Production
Methods for efficiently producing large quantities of goods
Venture Capital
Money that is invested in new or emerging companies that are perceived as having great profit potential
Centralized Authority
Occurs when decision-making is concentrated at the top level of management
Marketing Intermediaries
Organizations that assist in moving goods and services from producers to businesses (B2B) and from businesses to consumers (B2C)
Control
Performance evaluations transition
Short-Term Forecast
Predicts revenues, costs, and expenses for a period of one year or less
When You Borrow Money
Principle Term Interest
Form Utility
Producers change raw material into useful products
Occupational Safety and Health Act of 1970
Regulates safety and health conditions in most private industries and some public-sector organizations
Line Personnel
Responsible for directly achieving organizational, and include production workers, distribution people, and marketing personnel
Budget
Sets forth management's expectations for revenues and allocates the use of specific resources throughout the firm
Fringe Benefits
Sick-leave pay, vacation pay, pension plans, and health plans that represent additional compensation to employees beyond base wages
Organizing
Staffing-recruiting, selecting, and orientation Training-training and developing scheduling, compensating
Operating
Supervising
Orientation
The activity that initiates new employees into the organization
Time Value Of Money
The idea that money in your possession today is worth more than money that will be in your possession in the future
Financial Management
The job of managing a firm's resources to meet its goals and objectives
Labor-Intensive
The primary cost of operations is the cost of labor
Human Resource Management
The process of determining human resource needs and then recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals
Networking
The process of establishing and maintaining contacts with key managers in and outside the organization and using those contacts to weave strong relationships that serve as informal development systems
Selection
The process of gathering info and deciding who should be hired, under legal guidelines, to serve the best interests of the individual and organization
Management Development
The process of training and educating employees to become good managers and then monitoring the progress of their managerial skills over time
Recruitment
The set of activities for obtaining the right number of qualified people at the right time
Utility
The want-satisfying ability, or value, that organizations adds to goods or services by making them more useful or accessible to consumers than they were before
Selective Distribution
Uses only a preferred group of the available retailers in an area
Decentralized Authority
When decision-making is delegated to lower-level managers and employees more familiar with local conditions than headquarters is.
Unsecured Loan
a loan that doesn't require any collateral
Administered Distribution System
a system in which producers manage all the marketing functions at the retail level
Hierarchy
a system or organization in which people or groups are ranked one above the other according to status or authority.
Centralized Authority
an organization structure in which decision-making authority is maintained at the top level of management
Tall Organization Structure
an organizational structure in which the pyramidal organization chart would be quite tall because of the various levels of management
Secured Loan
backed by collateral, something valuable such as property. If the borrower fails to pay the loan, the lender may take possession of the collateral
Unsecured Bond
called a debenture bond, is backed only by the reputation of the issuer
Social Commerce
is a form of electronic commerce that involves using social media, online media that support social interaction, and user contributions to assist in the online buying and selling of products and services
Equity Financing
makes funds available when the owners of the firm sell shares of ownership to outside investors in the form of stock, when they reinvest company earnings in the business, or when they obtain funds from venture capitalists
Limited-Function Wholesalers
perform select functions, but try to do them especially well
core time
period when all employees are expected to be at their job stations
Leverage
raising funds through borrowing to increase the firm's rate of return
Direct Selling
reaches consumers in their homes or workplaces
Debt Financing
refers to funds raised through various forms of borrowing that must be repaid
Departmentalization
the dividing of organizational functions into separate units-workers are grouped by skills to specialize in them
Initial Public Offering (IPO)
the first time a company issues stock that may be bought by the general public
Chain of Command
the line of authority that moves from the top of a hierarchy to the lowest level
Span of Control
the optimal number of subordinates a manager supervises or should supervise