BUSA 101 Final Exam Study Guide
What are the steps in conducting marketing research?
(1) Define the problem or opportunity and determine the present situation (2) collect data (3) analyze the data (4) choose the best solution
What are the three major steps in a good public relations program?
(1) Listen to the public, (2) develop policies and procedures in the public interest, and (3) tell people you're being responsive to their needs.
What did Weber add to the principles of Fayol?
1. Job Descriptions. 2. Written rules, decision guidelines, and detailed records. 3. Consistent Procedures, regulations, and policies. 4. Staffing and promotion based on qualifications.
What are some wholesale organizations that assist in the movement of goods from manufacturers to consumers?
1. Merchant wholesalers are independently owned firms that take title to the goods they handle. 2. Rack jobbers furnish racks or shelves full of merchandise to retailers, display products, and sell on consignment. 3. Cash-and-carry wholesalers serve mostly small retailers with a limited assortment of products. 4. Drop shippers solicit orders from retailers and other wholesalers and have the merchandise shipped directly from a producer to a buyer.
What are the six steps to follow in establishing an effective ethics program in a business?
1. Top management must adopt and unconditionally support an explicit corporate code of conduct. 2. Employees must understand that expectations for ethical behavior begin at the top and that senior management expects all employees to act accordingly. 3. Managers and others must be trained to consider the ethical implications of all business decisions. 4. An ethics office must be set up with which employees can communicate anonymously. Whistleblowers (insiders who report illegal or unethical behavior) must feel protected from retaliation. 5. Outsiders such as suppliers, subcontractors, distributors, and customers must be told about the ethics program. 6. The ethics code must be enforced with timely action if any rules are broken.
What is 3D printing and what is it used for?
3D Printing, also known as additive manufacturing, is the process of making a product being created one layer at a time by a nozzle similar to those found in inkjet printers. 3D Printing is made to prototype products.
What is a balance sheet?
A balance sheet reports the financial position of a firm on a particular day. The fundamental accounting equation used to prepare the balance sheet is: Assets = Liabilities + Owners' equity.
Define brand, brand name, and trademark?
A brand is a name, symbol, or design (or combination thereof) that identifies the goods or services of one seller or group of sellers and distinguishes them from the goods and services of competitors. The word brand includes all means of identifying a product. A brand name consists of a word, letter, or group of words or letters that differentiates one seller's goods and services from those of competitors. A trademark is a brand that has exclusive legal protection for both its brand name and design.
What is comparative advantage, and what are some examples of this concept at work in the United States
A comparative advantage is best defined as a country or firm's ability to produce a good, service, or resource more efficiently than another, making it more profitable for not only the party that creates the good, but also the organization on the receiving end. Comparative Advantage Theory states that a country should sell to other countries those products it produces most effectively and efficiently, and buy from other countries those products it cannot produce as effectively or efficiently. The United States has a comparative advantage in producing goods and services, such as software development and engineering services. In contrast, it lacks a comparative advantage in growing coffee or making shoes; thus, we import most of the shoes and coffee we consume.
What is the difference between a limited partner and a general partner?
A limited Partner is an owner who invests money in the business but does not have any management responsibility or liability for losses beyond their investment. A general Partner is an owner who has unlimited liability and is active in managing the firm.
What are patents and copyrights?
A patent is a document that gives inventors exclusive rights to their inventions for 20 years from the date they file the patent applications. A copyright protects a creator's rights to materials such as books, articles, photos, paintings, and cartoons.
What's the difference between a product line and a product mix?
A product line is a group of physically similar products with similar competitors. A product line of gum may include bubble gum and sugarless gum. A product mix is a company's combination of product lines. A manufacturer may offer lines of gum, candy bars, and breath mints in its product mix.
What's the difference between a recession and a depression?
A recession is two or more consecutive quarters of decline in the GDP. Brings high unemployment, increased business failures, and an overall drop in living standards. A depression is a severe recession, usually accompanied by deflation. Depressions are very rare.
What is a retailer?
A retailer is an organization that sells to ultimate consumers. Marketers develop several strategies based on retailing.
What is a trademark?
A trademark is a legally protected name, symbol, or design (or combination of these) that identifies the goods or services of one seller and distinguishes them from those of competitors.
What is a wholesaler?
A wholesaler is a marketing intermediary that sells to organizations and individuals, but not to final consumers.
What is accounting?
Accounting is the recording, classifying, summarizing, and interpreting of financial events and transactions that affect an organization. The methods we use to record and summarize accounting data into reports are called an accounting system.
What does Adam Smith's term invisible hand mean? How does the invisible hand create wealth for a country?
Adam Smith's Invisible hand is a term that is used to refer to the social and economic benefits for all that are caused by self-directed gains (individual's efforts to increase their quality of life). In an economy, if one generates more income, there are more funds available each year for infrastructure as a result of that citizen's existence.
What makes a contract enforceable under the law?
An enforceable contract must meet six conditions: (1) an offer must be made (2) the offer must be voluntarily accepted (3) both parties must give consideration (4) both parties must be competent (5) the contract must be legal (6) the contract must be in proper form
What is an income statement?
An income statement reports revenues, costs, and expenses for a specific period of time (say, the year ended December 31, 2021). The formulas we use in preparing the income statement are: Revenue - Cost of goods sold = Gross margin Gross margin - Operating expenses = Net income before taxes Net income before taxes - Taxes = Net income (or net loss) Net income or loss is also called the bottom line.
What is an intentional tort?
An intentional tort is a willful act that results in injury.
What are the major accounts of the balance sheet?
Assets are economic resources owned by the firm, such as buildings and machinery. Liabilities are amounts the firm owes to creditors, bondholders, and others. Owners' equity is the value of everything the firm owns—its assets—minus any liabilities, thus: Owners' equity = Assets - Liabilities.
How are Generation X managers likely to be different from their baby boomer predecessors?
Baby Boomers tend to be willing to work long hours to build their careers and often expect their employees to do likewise. Gen Xers may strive for a more balanced lifestyle and are likely to focus on results rather than on how many hours their teams work. Gen Xers tend to be better than previous generations at working in teams and providing frequent feedback. They usually are not bound by traditions that may constrain those who have been with an organization for a long time and are willing to try new approaches to solving problems.
How are a nation's balance of trade and balance of payments determined?
Balance of trade is the total value of a nation's exports compared to its imports measured over a particular period of time. The Balance of payments is the difference between money coming into a country (from exports) and the money leaving the country (for imports) plus money flows coming into or leaving a country from other factors such as tourism, foreign aid, military expenditures, etc.
What are "Bitcoins," and can you buy things online with them?
Bitcoins are a form of online money. Bitcoin has an online store that accepts the currency.
What is the difference between bookkeeping and accounting?
Bookkeeping is part of accounting and includes the systematic recording of data. Accounting includes classifying, summarizing, interpreting, and reporting data to management.
What is brand equity, and how to managers create brand associations?
Brand equity is the value of a brand name and associated symbols. Brand association is the linking of a brand to other favorable images such as product users, a popular celebrity, or a geographic area.
What is break-even analysis?
Break-even analysis is the process used to determine profitability at various levels of sales. The break-even point is the point where revenues from sales equal all costs.
What are firms' major financial needs?
Businesses need financing for four major tasks: (1) managing day-by-day operations, (2) controlling credit operations, (3) acquiring needed inventory, and (4) making capital expenditures.
What is a statement of cash flows?
Cash flow is the difference between cash receipts (money coming in) and cash disbursements (money going out). The statement of cash flows reports cash receipts and disbursements related to the firm's major activities: operations, investments, and financing.
What's the difference between debt financing and equity financing?
Debt financing raises funds by borrowing. Equity financing raises funds from within the firm through investment of retained earnings, sale of stock to investors, or sale of part ownership to venture capitalists.
What is diversification?
Diversification means buying several different types of investments (government bonds, corporate bonds, preferred stock, common stock, global stock) with different degrees of risk. The purpose is to reduce the overall risk an investor would assume by investing in just one type of security.
What is meant by the term dumping in global trade?
Dumping is selling products in a foreign country at lower prices than those charged in the producing country.
What does empowerment mean?
Empowerment means giving employees the authority and the responsibility to respond quickly to customer requests. (Giving employees the tools to assume decision making powers.)
How does ethics differ from legality?
Ethics reflects people's proper relationships with one another: How should we treat others? What responsibility should we feel for others? Legality is narrower. It refers to laws we have written to protect ourselves from fraud, theft, and violence.
What does ethnocentricity mean, and how can it affect global success?
Ethnocentricity is defined as an attitude that your own culture is superior to other cultures.
What are some of the factors that influence the consumer decision-making process?
Factors that influence the consumer decision-making process include learning, reference group, culture, subculture, and cognitive dissonance.
What do financial managers do?
Financial managers plan, budget, control funds, obtain funds, collect funds, conduct audits, manage taxes, and advise top management on financial matters.
What is flexible manufacturing?
Flexible manufacturing means designing machines to do multiple tasks so they can produce a variety of products
Why do many small businesses avoid doing business globally?
For the following 3 reasons, small businesses typically avoid going global. Financing is often difficult to find, most don't know how to get started and do not understand the cultural differences between markets, and the bureaucratic paperwork can threaten to bury small businesses.
What is Frederick Taylor known for?
Fredrick Taylor was known for writing the Principles of Scientific Management, earning him the title "father" of scientific management.
What led to the emergence of socialism?
Free-market mechanisms don't seem to respond enough to the needs of those who are poor, elderly, or disabled. Some people also believe that businesses in free-market economies have not done enough to protect the environment. On the contrary, Socialism and communism haven't always created enough jobs or wealth to keep economies growing fast enough. For these reasons, socialism became more prominent to look out for the average citizen.
What are fringe benefits?
Fringe benefits include sick leave, vacation pay, company cars, pension plans, and health plans that provide additional compensation to employees beyond base wages. Cafeteria-style fringe benefits plans let employees choose the benefits they want, up to a certain dollar amount.
What is the difference between Fredericks Herzberg's motivator and hygiene factors? What are examples of each?
Herzberg's Motivators were related to job content (extra incentives), and his hygiene factors were more related to the maintenance and expectations that are factors of an acceptable work environment. Motivators: Achievement, recognition, responsibility, growth, etc. Hygiene: Supervision, security, working conditions, policy, etc.
What are the differences between common and preferred stock?
Holders of common stock have voting rights in the company. In exchange for having no voting rights, preferred stockholders receive a fixed dividend that must be paid in full before common stockholders receive a dividend. Preferred stockholders are also paid back their investment before common stockholders if the company is forced out of business.
When faced with ethical dilemmas, what questions can you ask yourself that might help you make ethical decisions?
How should we treat others? What responsibility should we feel for others?
What are the possible consequences if a contract is violated?
If a contract is violated, one of the following may be required: (1) specific performance (2) payment of damages (3) discharge of obligation
What are the major promotional strategies?
In a push strategy, the producer uses advertising, personal selling, sales promotion, and all other promotional tools to convince wholesalers and retailers to stock and sell merchandise. In a pull strategy, heavy advertising and sales promotion efforts are directed toward consumers so they'll request the products from retailers.
What is the difference between high-context and low-context cultures?
In high-context cultures, people build personal relationships and develop group trust before focusing on tasks. In low-context cultures, people often view relationship building as a waste of time that diverts attention from the task.
How do robotics help make manufacturers more competitive?
Industrial robotics can work 24 hours a day, seven days a week with great precision. Mass customization is no problem for them.
Why is the use of infomercials, online advertising, and social media advertising growing?
Infomercials are growing in importance because they show products in use and present testimonials to help sell goods and services. Online advertising pushes customers to a website where they can learn more about a company and its products. With social media advertising, companies can test ads and other promotions before bringing them to traditional media like TV.
What is insider trading?
Insider trading is the use of information or knowledge that individuals gain that allows them to benefit unfairly from fluctuations in security prices
Define Insourcing
Insourcing means to use an organization's own personnel or resources to accomplish a task that was previously outsourced.
What is better for an economy than teaching a man to fish?
Instead of teaching a man to fish so that he can feed himself, teach a man how to start a fish farm so he will be able to feed a village for a lifetime.
How do investors normally make purchases in securities markets?
Investors can purchase investments through market intermediaries called stockbrokers, who provide many different services. Online investing, however, has become extremely popular.
What are the criteria for selecting investments?
Investors should determine their overall financial objectives and evaluate investments according to (1) risk, (2) yield, (3) duration, (4) liquidity, and (5) tax consequences.
What are journals and ledgers?
Journals are the first place bookkeepers record transactions. Bookkeepers then summarize journal entries by posting them to ledgers. Ledgers are specialized accounting books that arrange the transactions by homogeneous groups (accounts).
What are the five factors of production? Which ones seem to be the most important for creating wealth?
Land, Labor, Capital, Entrepreneurship, and knowledge. What makes rich countries rich today is a combination of entrepreneurship and the effective use of knowledge. Entrepreneurs use what they've learned (knowledge) to grow their businesses and increase wealth. Economic and political freedom also matter.
What is lean manufacturing?
Lean manufacturing is the production of goods using less of everything than in mass production: less human effort, less manufacturing space, less investment in tools, and less engineering time to develop a new product.
Autocratic Leadership
Making managerial Decisions without consulting others. Being an autocratic leader means to take full control over a group to increase the followership.
What is the definition of management used in this chapter?
Management is the process used to accomplish organizational goals through planning, organizing, leading, and controlling people and their organizational resources.
What is the difference between a manager and a leader?
Managers strive to produce order and stability, whereas leaders embrace and manage change. Leadership is creating a vision for others to follow.
What are three distribution strategies marketers use?
Marketers use three basic distribution strategies: intensive (putting products in as many places as possible), selective (choosing only a few stores in a chosen market), and exclusive (using only one store in each market area).
What is the difference between mass marketing and relationship marketing?
Mass marketing means developing products and promotions to please large groups of people. Relationship marketing tends to lead away from mass production and toward custom-made goods and services. Its goal is to keep individual customers over time by offering them products or services that meet their needs.
What is the difference between macroeconomics and microeconomics?
Microeconomics looks at the behavior of people and organizations in markets for particular products and services. Macroeconomics looks at the operation of a nation's economy as a whole.
What are some common characteristics of Millennials?
Millennials tend to be adaptable, tech-savvy, able to grasp new concepts, practiced at multitasking, efficient, and tolerant. They often place a higher value on work-life balance, expect their employers to adapt to them, and are more likely to rank fun and stimulation in their top five ideal-job requirements.
What agencies ensure the money you put into a bank, S& L or credit union?
Money deposited in banks is insured by the Federal Deposit Insurance Corporation (FDIC). Money in S&Ls is insured by another agency connected to the FDIC, the Savings Association Insurance Fund (SAIF). Money in credit unions is insured by the National Credit Union Administration (NCUA). Accounts are now insured to $250,000.
What is money?
Money is anything people generally accept as payment for goods and services.
What is negligence?
Negligence, in tort law, is behavior that causes unintentional harm or injury. Findings of negligence can lead to huge judgments against businesses.
Why are so many new businesses choosing a limited liability company (LLC) form of ownership?
New businesses are choosing LLCs due to their limited liability, choice of taxation, flexible ownership rules, flexible distribution of profits and losses, and their operating flexibility.
If you buy stock in a corporation and someone gets injured by one of the corporation's products, can you be sued? Why or why not?
No. Because there is limited liability, the owners are only liable for losses up to their investment amount.
What countries still practice communism?
North Korea, China, Cuba, Laos, and Vietnam.
What is operations management?
Operations management is a specialized area in management that converts or transforms resources, including human resources like technical skills and innovation, into goods and services. It includes inventory management, quality control, production scheduling, follow-up services, and more.
What other promotional tools can marketers use to promote products?
Other promotional tools include social networking, blogging, podcasting, e-mail promotions, and mobile marketing.
Define Outsourcing
Outsourcing refers to contracting to other companies to do some or all functions of a firm (EX: Accounting or Production)
What are the seven functions of packaging?
Packaging must (1) attract the buyer's attention; (2) protect the goods inside, stand up under handling and storage, be tamperproof, and deter theft; (3) be easy to open and use; (4) describe the contents; (5) explain the benefits of the good inside; (6) provide information about warranties, warnings, and other consumer matters; and (7) indicate price, value, and uses. Bundling means grouping two or more products into a unit, through packaging, and charging one price for them.
What are the characteristics of a mixed economy?
Private ownership of land and businesses with government regulation. Government control over some institutions. Capitalism like incentives. Some government control of trade. A variety of goods and services available, though government is responsible for scarcity and oversupply. Some restrictions of freedom of assembly and speech.
What is process manufacturing, and how does it differ from assembly processes?
Process manufacturing physically or chemically changes materials. For example, boiling physically changes an egg. Similarly, process manufacturing turns sand into glass or computer chips.
What is production management?
Production Management has described the activities that helped firms create goods.
What is promotion?
Promotion is an effort by marketers to inform and remind people in the target market about products and to persuade them to participate in an exchange.
What are public relations?
Public relations (PR) is the function that evaluates public attitudes, changes policies and procedures in response to the public's requests, and executes a program of action and information to earn public understanding and acceptance.
What is publicity?
Publicity is the talking arm of public relations; it is information distributed by the media that's not paid for, or controlled by, the seller. Publicity's greatest advantage is its believability.
What are some of the issue's companies are facing related to childcare and elder care? How are companies addressing those issues?
Responsive companies are providing child care on the premises, emergency care when scheduled care is interrupted, discounts with child care chains, vouchers to be used at the employee's chosen care center, and referral services. Workers who need to provide elder care for dependent parents or others are generally more experienced and vital to the mission of the organization than younger workers are. The cost to business is very large and growing.
What is the difference between revenue and profit?
Revenue measures the amount of money a business takes in by selling goods and services, while profit is the amount of money that a company earns above and beyond what it spends for expenses.
What is risk, and how is it related to profit?
Risk is defined as the chance that an entrepreneur takes of losing time and money on a business that may prove to be or not to be profitable. Generally, with added risk comes a greater chance of profit.
A business plan is probably the most important document a small business owner will ever create. There are nine sections in the business plan outline shown in the chapter. Can you describe at least 5 of those sections now?
Section 1: Executive Summary: 2-3 page management summary of the proposed venture. Section 2: Company background: Describe operations to date. Summary of financial condition (financial records) Section 3: Management Team: include organizational Chart, job descriptions, resumes, etc. Section 4: Financial Plan: 5-year projections for income, expenses, and funding sources. Should give an overview of the bottom line. Section 5: Capital Required: Indicate the amount of capital needed to operate. Total should be = to cash flow statement. This section will endure a great deal of review from investors. Section 6: Marketing plan: review the industry size, trends, and the target market segment. Compare pricing to your competition's. outline your advertising programs and make sure they match the financial statements. Section 7: Location Analysis: Provide comprehensive demographic analysis of consumers and traffic pattern analysis with pedestrian counts of the proposed location. Section 8: Manufacturing Plan: Describe minimum plant size, machinery required, etc. Estimates of product costs should be based on primary research. Section 9: Appendix: Include all marketing research on the product or service. Provide a bibliography. This section should demonstrate that the proposed company won't be entering a declining industry or market segment
Define Stakeholder
Stakeholders are people who stand to gain or lose by the policies and activities of a business. (Customers, Employees, stockholders, community, suppliers, etc.)
What is the difference between standard of living and quality of life?
Standard of living refers to the amount of goods and services that people can buy with the money that they have Quality of Life refers to the general well-being of a society in terms of political freedom, environment, education, health care, safety, etc.
What is the difference between statutory law and common law?
Statutory law includes state and federal constitutions, legislative enactments, treaties of the federal government, and ordinances—in short, written law. Common law is the body of unwritten law that comes from decisions handed down by judges.
What are stock exchanges?
Stock exchanges are securities markets whose members are engaged in buying and selling securities such as stocks and bonds.
What are the differences among strategic, tactical and operational planning?
Strategic Planning is the setting of broad long-range goals by top managers. Tactical Planning is the identification of specific, short-range objectives by lower level managers. Operational Planning is the setting of work standards and schedules. Contingency Planning is the creation of backup plans in case primary plans fail.
What scheduling plans can adjust work to employees' need for flexibility?
Such plans include flextime, compressed workweeks, home-based work, and job sharing.
What is the Dow Jones Industrial Average?
The Dow Jones Industrial Average is the average price of 30 specific stocks that analysts use to track the direction (up or down) of the stock market.
What's the difference between pay equity and equal pay for equal work?
The Equal Pay Act of 1963 provides that workers receive equal pay for equal work (with exceptions for seniority, merit, or performance). Pay equity is the demand for equivalent pay for jobs requiring similar levels of education, training, and skills.
How does the Federal Reserve control the money supply?
The Federal Reserve makes financial institutions keep funds in the Federal Reserve System (reserve requirement), buys and sells government securities (open-market operations), and lends money to banks (the discount rate). To increase the money supply, the Fed can cut the reserve requirement, buy government bonds, and lower the discount rate.
What does the term monetary policy mean? What organization is responsible for monetary policy?
The Monetary policy is the management of the money supply and interest rates by the federal Reserve Bank. The Federal Reserve's most important role is raising and lowering interest rates. Interest Rate maintenance should help control rapid ups and downs of the economy.
What are the different exchanges?
The NYSE is the oldest and largest floor exchange but today does very little stock trading on its floor. The NASDAQ is a telecommunications network that links dealers across the nation so that they can buy and sell securities electronically rather than in person. It is the largest U.S. electronic stock trading market.
What is the over-the-counter (OTC) market?
The OTC market is a system for exchanging stocks not listed on the national exchanges.
How are securities exchanges regulated?
The Securities and Exchange Commission (SEC) regulates securities exchanges and requires companies that intend to sell bonds or stocks to provide a prospectus to potential investors.
What roles do the Word Bank and the IMF play?
The World Bank (also called the International Bank for Reconstruction and Development) is primarily responsible for financing economic development. The International Monetary Fund (IMF), in contrast, was established to assist the smooth flow of money among nations. It requires members (who join voluntarily) to allow their own money to be exchanged for foreign money freely, to keep the IMF informed about changes in monetary policy, and to modify those policies on the advice of the IMF to accommodate the needs of the entire membership.
What are the three budgets in a financial plan?
The capital budget is the spending plan for expensive assets such as property, plant, and equipment. The cash budget is the projected cash balance at the end of a given period. The operating (master) budget summarizes the information in the other two budgets. It projects dollar allocations to various costs and expenses given various revenues.
What are the five elements in the business environment?
The economic and legal environment. The technological environment. The competitive environment. The social environment. The global business environment.
What are the five standards for a useful form of money?
The five standards for a useful form of money are portability, divisibility, stability, durability, and uniqueness.
What are the steps in human resource planning?
The five steps are (1) preparing a human resource inventory of the organization's employees; (2) preparing a job analysis; (3) assessing future demand; (4) assessing future supply; and (5) establishing a plan for recruiting, hiring, educating, appraising, compensating, and scheduling employees.
What are the four key categories of ratios?
The four key categories of ratios are liquidity ratios, leverage (debt) ratios, profitability (performance) ratios, and activity ratios.
What are the four stages in the product life cycle?
The four product life cycle stages are introduction, growth, maturity, and decline.
What are the four traditional promotional tools that make up the promotion mix?
The four traditional promotional tools are advertising, personal selling, public relations, and sales promotion. The product itself can also be a promotional tool.
How is word of mouth used in promotion today?
The goal of word of mouth is to get the company's message to as many people as possible. Viral marketing includes any strategy that encourages people to pass on a marketing message to others, creating exponential growth in the message's influence as the message reaches thousands to millions. Many viral marketing programs give away free products or services, often in exchange for valuable e-mail addresses.
What caused the banking crisis?
The goal was to have affordable housing, so the government urged banks to make loans to some who could not afford to repay. The banks wanted to minimize the risk of such loans, so they created mortgage-backed securities and sold them to other banks and organizations throughout the world. The government did not regulate these transactions well, and many banks failed because housing values fell and people defaulted on their loans. Many have been blamed for the loss: the Fed, Congress, bank managers, Fannie Mae, and Freddie Mac among them.
How do marketers implement the four Ps?
The idea behind the four Ps is to design a product people want, price it competitively, place it where consumers can find it easily, and promote it so consumers know it exists.
What are the most common ways firms fail financially?
The most common financial problems are (1) undercapitalization, (2) poor control over cash flow, and (3) inadequate expense control.
How do businesspeople know what to produce and in what quantity?
The number of products requested (instore or online) is a good indication of how many products a business person should product to meet demand.
What is the role of owners (stockholders) in the corporate hierarchy?
The owners and stockholders elect board of directors.
What is the product life cycle?
The product life cycle is a theoretical model of what happens to sales and profits for a product class over time.
What are the six steps of the accounting cycle?
The six steps of the accounting cycle are (1) analyzing documents; (2) recording information into journals; (3) posting that information into ledgers; (4) developing a trial balance; (5) preparing financial statements—the balance sheet, income statement, and statement of cash flows; and (6) analyzing financial statements.
What are the six steps in the selection process?
The steps are (1) obtaining complete application forms (2) conducting initial and follow-up interviews (3) giving employment tests (4) conducting background investigations (5) obtaining results from physical exams (6) establishing a trial period of employment
What are the steps in the B2C selling process?
The steps are the approach, which includes asking questions; the presentation, which includes answering questions; the close; and the follow-up.
What are the seven steps of the B2B selling process?
The steps of the selling process are (1) prospect and qualify, (2) preapproach, (3) approach, (4) make a presentation, (5) answer objections, (6) close the sale, and (7) follow up.
What are the latest trends in structuring?
The trend today is to expand the span of control as organizations adopt empowerment, reduce the number of middle managers, and hire more talented and better educated lower-level employees.
What did Abraham Maslow find human motivation to be based on?
To Maslow, It seemed that motivation arises from need. That is, people are motivated to satisfy unmet needs. Needs that have already been satisfied no longer provide motivation.
What are the four basic rights that people have under free-market capitalism?
Under free market Capitalism, people have four basic rights: The right to own property, the right to own a business and keep all that business's profits, The right to freedom of competition, and the right to freedom of choice.
What will unions have to do to cope with continually declining memberships?
Unions are facing a changing workplace. The National Education Association is now the nation's largest union. The Service Employees International Union (SEIU), with two million members, is the second-largest union. Going forward, unions must adapt to an increasingly white-collar, female, and culturally diverse workforce. To help keep U.S. businesses competitive in global markets, many have taken on a new role in assisting management in training workers, redesigning jobs, and assimilating the changing workforce.
What are the tactics used by unions and management in conflicts?
Unions can use strikes and boycotts. Management can use strikebreakers, injunctions, and lockouts.
What are the principles of management outlined by Fayol?
Unity of command - each employee reports to only one boss Hierarchy of authority - all workers should know to whom to report. Devision of labor - Functions are to be divided into areas of specialization. Subordination of individual interests to the general interest - Workers think of themselves as a coordinated team. Authority - Managers have the right to give orders and the power to enforce obedience. Degree of centralization - The amount of decision making power vested in top management should vary by circumstance. Clear communication channels - All workers should be able to reach others in the organization quickly and easily. Order - Materials and people should be placed and maintained in the proper location. Equity - A manager should treat employees and peers with respect and justice. Espirit de corps - A spirit of pride and loyaty should be created among the people in the firm.
What opportunities are available for starting a global franchise?
What makes franchising successful in global markets is the consistency in convenience and predictable levels of service and quality.
What does a company analyze when it does a SWOT analysis?
When a company preforms a SWOT analysis, they analyze potential STRENGTHS, Potential WEAKNESSES, Potential OPPORTUNITIES, and potential THREATS.
Why would unlimited liability be considered a major drawback to sole proprietorships?
With unlimited liability, you are the business. You and the business as one individual. If the business incurs any additional debt, that debt is attached to the sole proprietor and travels with them no matter where they go, even if that means selling everything in their name.
Is word of mouth a major promotional tool?
Word of mouth was not one of the traditional forms of promotion because it was not considered to be manageable, but it has always been an effective way of promoting goods and services.
Why has there been such an increase in hiring contingent workers?
Workers want diversity and flexibility in their roles and the ability to showcase their skills; and employers have shifted from "I need to hire a person" to "I need to complete a task."
Free-Rein Leadership
allows managers to set objectives and employees are free to do whatever is appropriate to accomplish those objectives.
What does the Foreign Corrupt Practices Act prohibit?
can create competitive disadvantages. This law prohibits "questionable" or "dubious" payments to foreign officials to secure business contracts.
What do you gain from being an Entrepreneur?
freedom to make your own decisions, opportunity, and possible wealth—is often worth the effort
What are four major hurdles to successful global trade?
hurdles include dealing with differences in sociocultural forces, economic and financial forces, legal and regulatory forces, and physical and environmental forces.
Participative Leadership
involves managers and employees working together to make decisions. Employee participation in decision making does not always increase effectiveness, though it does tend to increase job satisfaction.
What is mass customization?
mass customization, which means tailoring products to meet the needs of a large number of individual customers, is now practiced widely.
What are some of the advantages of working for others?
somebody else assumes the company's entrepreneurial risk and provides you with benefits like paid vacation time and health insurance.
How do CAD/CAM systems work?
the use of both computer-aided design and computer-aided manufacturing, makes it possible to custom-design products to meet the needs of small markets with very little increase in cost.
What do you lose from being an entrepreneur?
you don't receive any benefits such as paid vacation time, day care, a company car, or health insurance. You have to provide them for yourself.
What strategies can marketers use to determine a product's price?
· A skimming strategy prices the product high to make big profits while there's little competition. · A penetration strategy uses low price to attract more customers and discourage competitors. Demand-oriented pricing starts with consumer demand rather than cost. · Competition-oriented pricing is based on all competitors' prices. · Price leadership occurs when all competitors follow the pricing practice of one or more dominant companies.
What are the bankruptcy laws?
· Chapter 7 calls for straight bankruptcy, in which all assets are divided among creditors after exemptions. · Chapter 11 allows a firm to reorganize and continue operation after paying only a limited portion of its debts. · Chapter 13 allows individuals to pay their creditors over an extended period of time.
Name the three economic indicators and describe how well the United States is doing based on each indicator.
1 GDP: the total value of final goods and services produced in a country in a given year. 2 Unemployment Rate: refers to the percentage of civilians at least 16 years old who are unemployed and tried to find a job within the prior four weeks. 3 Price Index: The Consumer Price Index consists of monthly statistics that measure the pace of inflation or deflation. The government can compute the cost of goods and services, including housing, food, apparel, and medical care, to see whether or not they are going up or down.
What are the four major choices in structuring organizations?
1. Centralization vs. decentralization 2. span of control 3. tall versus flat organizational structures 4. departmentalization
What are the six Ds of decision making?
1. Define the situation. 2. Describe and collect needed information. 3. Develop alternatives. 4. Decide which alternative is best. 5. Do what is indicated (begin implementation) 6. Determine whether the decision was a good one and follow up.
Most people who start businesses in the United States are sole proprietors. What are the advantages and disadvantages of sole proprietorships?
Advantages: Ease of foundation, ability to be your own boss, pride of ownership, leaving a legacy, retention of company profits, no special taxes. Disadvantages: unlimited liability, limited financial resources, management difficulties, overwhelming time commitment, limited growth, and limited life span.
What are some of the advantages and disadvantages of partnerships?
Advantages: More financial resources, shared management, complimentary skills and knowledge, longer survival, no special taxes. Disadvantages: Unlimited Liability, Division of profits, disagreements among partners, difficulty of termination.
What are the major advantages and disadvantages of incorporating a business?
Advantages: limited liability, Ability to raise more money for investment, Size, perpetual Life, ease of ownership change, ease of attracting talented employees, separation of ownership form management. Disadvantages: initial cost, extensive paperwork, double taxation, size, difficulty of termination, possible conflict with stockholders and board of directors.
What is advertising?
Advertising is limited to paid, nonpersonal (not face-to-face) communication through various media by organizations and individuals who are in some way identified in the advertising message.
How would a low value of the dollar affect U.S. exports?
All else held constant, U.S. Exports would increase due to a cheaper exchange rate for foreign countries. More foreign consumers and producers would buy more goods from America due to the cheaper cost of the U.S. Dollar. The demand will increase.
What are compliance-based and integrity-based ethics codes?
Compliance-based ethics codes emphasize preventing unlawful behavior by increasing control and penalizing wrongdoers. Integrity-based ethics codes define the organization's guiding values, create an environment that supports ethically sound behavior, and stress shared accountability.
How do computers help accountants?
Computers can record and analyze data and provide financial reports. Software can continuously analyze and test accounting systems to be sure they are functioning correctly. Computers can help decision making by providing appropriate information, but they cannot themselves make good financial decisions. Accounting applications and creativity are still human functions.
What are contingent workers?
Contingent workers include part-time workers (anyone who works less than 35 hours per week), temporary workers (workers paid by temporary employment agencies), seasonal workers, independent contractors, interns, and co-op students.
What are some of the ways marketers segment the consumer market?
Geographic segmentation means dividing the market into different regions. Segmentation by age, income, and education level is demographic segmentation. We study a group's values, attitudes, and interests using psychographic segmentation. Determining which benefits customers prefer and using them to promote a product is benefit segmentation. Separating the market by usage is called volume segmentation. The best segmentation strategy is to use all the variables to come up with a consumer profile for a target market that's sizable, reachable, and profitable.
What do we mean by global markets?
Global markets mean that banks do not necessarily keep their money in their own countries. They make investments where they get the maximum return. What this means for you is that banking is no longer a domestic issue; it's a global one.
What is the difference between goals and objectives?
Goals are broad, long-term accomplishments an organization wishes to attain. Objectives a re specific, short term statements detailing how to achieve the organization's goals.
What are the four degrees of competition and what are some examples of each?
Perfect competition (1/4 degrees of competition) exists when there are many sellers in a market and none is large enough to dictate the price of a product. An example would be different farmer's apples, though there is no true example of perfect competition. monopolistic competition a large number of sellers produce very similar products that buyers nevertheless perceive as different, such as hot dogs, sodas, laptop computers, and T-shirts. An oligopoly is a degree of competition in which just a few sellers dominate a market, as we see in tobacco, gasoline, automobiles, aluminum, and aircraft. One reason some industries remain in the hands of a few sellers is that the initial investment required to enter the business often is tremendous. Think, for example, of how much it would cost to start a new airplane manufacturing facility. A monopoly occurs when one seller controls the total supply of a product or service, and sets the price. In the United States, laws prohibit the creation of monopolies. Nonetheless, the U.S. legal system has permitted monopolies in the markets for public utilities that sell natural gas, water, and electric power. These companies' prices and profits are usually controlled by public service commissions to protect the interest of buyers.
What is personal selling?
Personal selling is the face-to-face presentation and promotion of products and services. It includes the search for new prospects and follow-up service after the sale.
What are the four functions of management?
Planning, Organizing, Leading, and controlling are the four functions of management.
How are prices determined?
Prices are determined by the buyers and sellers NEGOTIATING in the marketplace (microeconomic supply and demand)
Why do companies use nonprice strategies?
Pricing is one of the easiest marketing strategies to copy. It's often not a good long-run competitive tool.
What are pricing objectives?
Pricing objectives include achieving a target profit, building traffic, increasing market share, creating an image, and meeting social goals.
How is the term sexual harassment defined, and when does sexual behavior become illegal?
Sexual harassment refers to unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature that creates a hostile work environment.
What's the difference between short term and long-term financing?
Short-term financing raises funds to be repaid in less than a year, whereas long-term financing raises funds to be repaid over a longer period.
What are some of the advantages small businesses have over large businesses in selling global markets?
Small businesses have the following advantages: 1. Small companies can usually begin shipping much faster, 2. small companies can provide a wide variety of suppliers, 3. small companies can give customers personal service because each overseas account is a major source of business to them, and overseas buyers often enjoy dealing with individuals rather than a large corporation.
What are the benefits and drawbacks of socialism?
Socialism has had issues in providing enough jobs or wealth to keep economies running. On the other hand, socialism has responded to those who are poor, elderly, or disabled. Socialism also allows the government to have more control over environmental issues.
What is ethics?
Society's accepted standards of moral behavior; behaviors accepted by society as right rather than wrong.
What are some of the factors to consider before buying a franchise?
What are your obligations, your rights, your competition, other owners, your independence, and your market.
