intro mangment chapter 5 and 6

Partnership

A business in which two or more persons combine their assets and skills

Sole proprietorship

A business owned by one person

Corporation

A business owned by stockholders who share in its profits but are not personally responsible for its debts

Goals and objectives

Setting goals is often a team process, Objectives detail how to achieve goals

Managers need to be

Skilled communicator A team player A planner An organizer A leader A motivator

Foreign corporations

operate in states other than their state of incorporation

Domestic corporation

operates in the state that granted the charter

Franchise

owner, one selling Franchise

Interns

-doing lots of work for little money they are future of the company and industry

Limited partnership

1 general partnership Multiple Limited partnerships, do have to file proof or partnerships with state, 1 GP is not protected from liability, Multiple LP's are protected

General Partnerships

2 or more people % of business Written agreements No liability protection Access to money Pass through taxes

S corporation

A unique government creation that looks like a corporation but is taxed like sole proprietorships and partnerships

Benfits of home based business

Ability to start your business Minimal start up capital needed No rent or excessive set up charges Comfortable working conditions

Limited liability Partnership

All partners are limited partners and not responsible for the debts and other liabilities of other partners

Nonprofit organizations

Business organizations that provide goods and services without seeking to earn a profit.

Advantages to going global

Buyers could be different not wanting to deal with corporations Small companies can ship much faster Small companies can provide different information

Board of directors

CEO gives direction to officers

Entrepreneurial teams

Combine their creative skills with production and marketing skills from the start Ensure more cooperation and coordination among functions

functions of a manager

Controlling-measuring results against corporate objectives Monitoring performance relative to standards Rewarding outstanding performance Taking corrective ac1 when necessary

Decision making

Define the situation Describe and collect needed information Develop alternatives Decide which alternative is best Do what is indicated Determine whether the decision was a good one and follow up

Delware

Delaware has a court system that is basically a business court, Corporations go to Delaware to start to protect themselves.

Down sides of home based business

Difficult to establish work habits Limited support system Isolation Clients may be uncomfortable

Mistakes Busiesses owners make

Don't commit Hire wrong people Don't want to give up control Failed to use technology

Participative (democratic leadership)

Employees participate in decisions usually increases job satisfaction

Leaders must-communicate a vision and rally others around that vision

Establish corporate values Promote corporate ethics Embrace change Stress accountability and responsibility Transparency

Controlling

Establishing clear performance standards Monitoring and recording actual performance or results Comparing results against plans and standards Communicating results and deviations to the appropriate employees Taking corrective action when needed and providing positive feedback for work well done

Disadvantages of corporations

Expensive to start a corporation Extensive and specific paperwork Double taxation-corporation as well as shareholders are taxed Two tax returns Size Difficulty of termination Possible conflict with stockholders and board of directors

LLC

FEDERAL GOVERNMENT DOES NOT FORM LLC PARTNERSHIPS ONLY STATE CAN DO SO

steps to start a business

Find a need Write copy that sells Design an easy website to use Use search engines to traffic your site Increase income Follow with customers and subscribers

Managing knowledge

Giving employees the information they need to complete their job Rise of big date requires determining what is most important Key to success is learning how to process information effectively and turn it into knowledge

Conventional Corporation

Has stockholders Limits liability of owners Enables many people to share in ownership

Disadvantages of franchises

Large start up costs Shared profit Management regulation Coattail effects Restrictions on selling Fraudulent franchisors

functions of a manager 3

Leading-Guide and motivate employees to work effectively to accomplish organizational goals and objectives Giving assignments Explaining routines Clarifying policies Providing feedback on performance

Advantages of corporations

Limited liability Ability to raise more money for investment Size Perpetual life Ease of ownership change Ease of attracting talented employees Separation of ownership from management, decisions aren't made by owners vs managements

Advantages of Limited liability Companies

Limited liability Choice of taxation Flexible ownership rules Flexible distribution of profits Operating flexibility

Types of partnerships

Limited liability partnership-group of people Limits partners risk Limited partnership Has general partners and limited partners who have limited liability General partnership- 1-2 partners Shared ownership and limited liability

Disadvantages of home based franchises

Long hours Home all the time

Low managers

Low managerstechnical skills,human relations skills,conceptual skills

Advantages of franchising

Management and marketing assistance Personal ownership Nationally recognized name Financial advice and assistance Lower failure rate IF ITS A SUCCESSFUL FRANCESE FROM THE TOP IT WILL MOST LIKELY BE SUCCESSFUL FROM THE BOTTOM

Advantages of partnerships

More financial resources Shared management and pooled/complementary skills and knowledge Longer survival No special taxes

Advantages of Home based franchises

No commuting Extra time for family Low overhead

Disadvantages of Limited Liability companies

No stock Fewer incentives Taxes Paperwork Established by state law

Individuals can incorporate

Normally do not issue stock to other Limited liability and tax benefits

Reasons to become an entrepreneur

Opportunities Profit Independence challenge Job loss

functions of a manager 2

Organizing- allowing resources assigning tasks and establishing procedures for accomplishing goals, Preparing a structure showing lines of authority, Recruiting selecting training and developing, Placing employees where they are most affective

Functions of business

Planning your business Financing your business Knowing your customers Managing your employees Keeping records

Functions of a manager 1

Planning- understand environment that the business operates

Mission statement

Self concept Philosophy Long term survival needs Customer needs Social responsibility Nature of its products or services

What does it take to be an entrepreneur

Self directed Self nurturing Action oriented

4 areas of planning

Strategic planning-setting of broad long range goals by top management Tactical planning-identification of specific short range objectives by lower level managers Operational planning-setting of work standards and schedules Contingency planning-back up plans in case primary plans fail

Tasks and skills at different levels of management

Technical skills Human relations skills Conceptual skills

C Corporation

The most common type of corporation, which is a legal business entity that offers limited liability to all of its owners, who are called stockholders

Disadvantages of partnerships

Unlimited liability-no protection Shared profits Disagreements among partners Difficulty of termination-end business because of disagreements

Disadvantages of sole proprietorship

Unlimited liability-risk of personal losses Limited financial resources Management difficulties Overwhelming time commitment Few fringe benefits Limited growth Limited life span

3 types of merges

Vertical merger-competition coming together Horizontal merger-2 seperate companies in same industry Conglomerate merger-companies from different industries

Diversity

Women own half of all US companies but only 35% of franchise Lot of minorities are franchisors

Advantages of Sole proprietorship

You decide the rules of business Own boss Pride of ownership Leaving a legacy Retention of company profits No special taxes Dies when owner dies No liability protection Unlimited employees One person

Multinational corporation

a large business that operates in many countries

Franchise

agreement where someone has a good idea for a business and sells name and rights to use that business

Enabling workers

allows them to be able to assume responsibility and decision making

Officers

apply decisions and direction to employees

Quasi public corporations

are chartered by the government as an approved monopoly to perform services to the general public.

Cooperatives

are owned and controlled by the people who use them World wide, co-ops

Professional corporations

are owned by those who offer professional services

Public corporations

businesses that sell stock, or pieces of ownership, to the public on the stock market

Vp marketing

dept heads,domestic,overseases managers supervisor

Alien corporations

do business in the United States but are chartered (incorporated) in another country.

Autocratic leadership

effective in emergencies or with new unskilled workers who need clear direction and guidance

Progessive leaders

empower employees

PMI

gathering information and coming to a conclusion with facts

Micropreneurs

home based businessess

Lawyers

many do pro bono work even for nonprofit companies

intrapreneurs

people within an existing business

Franchisor

person selling franchise

Incubators

places where government or towns have created for a safe business

small business

small compared to other businesses in the industry

Free rein leadership

successful when supervising employees

Top managers

technical skills,human relations skills, conceptual skills

Middle managers

technical skills,human relations skills,conceptual skills

Empowering workers

telling employees what to do to meet organizational goals

Problem solving teams

two or more workers assigned to solve a problem