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