MCE Test 1

Positional power

legitimate power, reward power, coercive power

controlling

monitoring performance, comparing it with goals, and taking corrective action as needed

conglomerate merger

the joining of firms in completely unrelated industries

horizontal merger

the joining of two firms in the same industry

Merger

the result of two firms forming one company

Franchise

the right to use a businesses name and sell in a specific area, must pay a large start up cost to do this

conceptual

think analytically, solve problems

Partnership

two or more owners

technical

use expertise, apply strong skill set to operations

decisional

using information to make decisions

referent power

when others idolize identify with or are inspired by the person

human

work well with others, build relationships

organizing

creating structure, assigning task, allocating resources

Planning

establishing objectives and goals for an organization and determining the best ways to accomplish them

Informational

exchanging and processing information

Personal power

expert power, referent power

Speculative risk

A chance of loss, no loss, or gain (buying new machinery, acquiring more inventory)

S corporation

A unique government creation that looks like a corporation but is taxed like sole proprietorships and partnerships, no more than 100 shareholders who must be us citizens or residents, no double taxation, income is passed straight to shareholders or owners

Business profits

Distributed to owners, shareholders, or reinvested back into business

Five factors of external business enviornment

Economic and legal, technological, competitive, social, global

Stakeholders

Have a stake in an organization, are influenced by the things an organization does, can influence an organization

venture capitalists

Individuals or companies that invest in new businesses in exchange for partial ownership of those businesses.

General partner

Is a partner, but has unlimited liability and is active in managing the firm

Corporation

Legal entity that is seperate from owners, artificial being that only exists in the eyes of the law, shareholders have rights to profits but have no liability

LLC (limited liability company)

Like s corporation, but without special requirements, owner can be one person, a partnership, or corporation, owners are not personally liable, pay self-employment tax, pay personal or corporate tax, no stock (no shareholders)

acquisition

One company's purchase of the property and obligations of another company.

Business source capital

Private investors (looking for return on investment)

Business

Provide a good or service while operating at a profit

Nonprofit

Provide a good or service, but do not make a personal profit for owners

Nonprofit source capital

Tax deductible charitable contributions from individuals, foundations, corporations, or grants (looking for social returns)

Verticle merger

The joining of two companies involved in different stages of related businesses

Sole Proprietorship

a business owned and managed by a single individual, most common form of business

Pure risk

a risk that presents the chance of loss but no opportunity for gain (fire, theft)

C corporation

a state-chartered legal entity with authority to act and have liability separate from its owners, unlimited shareholders, double taxation (corporate and individual level)

reward power

ability to control the allocation of rewards or remove negative sanctions

Coercive power

ability to harm penalize of punish someone

Legitimate power

associated with having status or formal job authority

expert power

capacity to influence others by possessing knowledge or skills that they value

Three skills a manager needs

conceptual, human, technical

Risk

degree of probably of loss, amount of possible loss

Crowdfunding

donation based or debt-investment (peer-to-peer lending)

Leading

getting people enthused or inspired, building commitment, aligning others to values

Small business administration

gov. agency that advises and assists small business by providing management, financial advice, and loans

Three roles of a manager

informational, interpersonal, decisional

interpersonal

interacting with people

limited partner

is an owner who invests money in the business but does not have any management responsibility or liability for losses beyond his or her investment.

Co-op

owned and controlled by the people who use it, pool resources for mutual gain, members elect a board of directors that hire professional management

Four functions of management

planning, organizing, leading, controlling

Angels

private individuals who invest their own money in potentially hot new companies before they go public

Nonprofit profits

reinvest back into organization