Bus 2000 Final

set up a business

1. decide on business structure 2. create a bus name 3. register the bus in the state 4. obtain fed employer identification number 5. open company bank accounts 6. obtain bus licenses and permits 7. annual and ongoing requirment

controlling make sure it works

1. establish clear standards 2. Monitor and records performance 3. compare results against standards 4. communicate results 5. if needed take correct actions

Partnership

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

Proprietorship

A business owned by one person The owner is manager or operator owner responsible for losses profit and all debts.

Limited Liability Company (LLC)

A company similar to an S corporation but without the special eligibility requirements.

job enrichment

A motivational strategy that emphasizes motivating the worker through the job itself.

Master Limited Partnership (MLP)

A partnership that looks much like a corporation (in that it acts like a corporation and is traded on a stock exchange) but is taxed like a partnership and thus avoids the corporate income tax. MLP's need to derive 90% of their revenues from natural resources activities (this includes real estate related activities). i.e. Blackstone Group (BX): Financial Services. i.e. Black Stone Minerals (BSM): Oil and Gas Properties.

S corporation

A unique government creation that looks like a corporation but is taxed like sole proprietorships and partnerships. Have sjare holders directors and employers *avoid double taxes, cap 100 shareholders. Only one class of stock no more than 25% passive income

organization chart

A visual device that shows relationships among people and divides the organization's work; it shows who reports to whom.

Franchising

An arrangement whereby someone with a good idea for a business (franchisor) sells the rights to use the business name and sell a product or service (franchise) to others (franchisees) in a given territory. Can be formed as a sole proprietorship, a partnership, or a corporation

inverted organization

An organization that has contact people at the top and the CEO at the bottom of the organizational chart.

individual can incorporate

Anyone—truckers, doctors, plumbers, athletes, and small business owners—can incorporate. Stock is normally not issued to outsiders when individuals incorporate, so they do not share the advantages and disadvantages of large corporations. Major advantages are limited liability.

merger

Combination of two or more companies into a single firm (a+b=c)

economies of scale

Companies can reduce their production costs by purchasing raw materials in bulk.

Benchmarking

Comparing an organization's practices, processes, and products against the world's best. management of one company seeks out another company whose technology or process in doing a particular function rival all others.

Henri Fayol

French engineer and industrialist first to identify the major functions of management

Elton Mayo

Hawthorne Studies

limited liability partnership

LLP limits the liability of individual partners to damages or debts that result from their own decisions or actions, or to those of employees under their direct supervision. Individual partners in an LLP can operate without the fear that a judgment takes away their personal assets that due to other partners' malpractice.

PMI

Listing all the pluses for a solution in one column, all the minuses in another, and the implications in a third column. A technique of a team most likely to use evaluate several possible solutions to a specific problem.

Franchise examples

McDonalds, Taco Bell, Subway

Managment by Objectives

Peter trucker management can not motivate because people motivate themselves (Peter ducker)

contingency planning

Preparing alternative courses of action that may be used if the primary plans don't achieve the organization's objectives.

Types of Corporations

S-corp and C-corp

Corporation

Separate legal entity organized under state corporation law Ownership divided into shares of stock Limited liability

operational planning

Setting work standards and schedules necessary to implement the company's tactical objectives. Lower-level managers such as supervisors and department managers usually carry out this type of planning.

objectives

Specific, short-term statements detailing how to achieve the organization's goals.

Leadership

The action of leading a group of people or an organization

Expectancy Theory

The amount of effort employees exert on a specific task depends on their expectations of the outcome

Goals

The broad, long-term accomplishments an organization wishes to attain.

which statement about s corporation is most accurate The major attraction of S corporations is that they avoid the problem of double taxation. B. S corporations are similar to C corporations, except that the majority of owners are foreign investors. C. Any corporation willing to pay the necessary fees and fill out the required paperwork can become an S corporation. D. Only large corporations with operations in more than one state can qualify to be classified as S corporations.

The major attraction of S corporations is that they avoid the problem of double taxation.

Management

The process of accomplishing the goals of an organization through the effective use of people and other resources.

problem solving

The process of solving the everyday problems that occur; less formal than decision making and usually calls for quicker action.

Max Weber

The theory of social and economic organization . Emphasized job description, written rules, descion guidelines and detailed records consistent procedures regulations and policies staffing and promotion based on qualifications

Fayol List

Unity of command: each employee report only one boss to avoid confusion. Hierarchy of authority: who report to? expect to follow. Division of labor: jobs divided into areas of specialization (i.e. finance, mkt, etc.) Subordination of individual interests to the general interest: goals of team + Authority: enforce obedience. Conflict to empowering employees? Degree of centralization: decisions making vary btw. large org. vs. small org. Clear communication channels: quick and easy. (In) Order: maintained in proper location. Equity: treat others with respect and justice. Esprit de corps: A sprit of pride and loyalty

centralized authority

When decision-making authority is maintained at the top level of management at the company's headquarters.

decentralized authority

When decision-making is delegated to lower-level managers and employees more familiar with local conditions than headquarters is.

vision

Why the organization exists and where it's trying to go; Provide a sense of purpose and a common set of values To unite the workers and give them a sense of direction.

job enlargement

a job enrichment strategy that involves combining a series of tasks into one challenging and interesting assignment

job rotation

a job enrichment strategy that involves moving employees from one job to another

Conventional (C) Corporation

a state-chartered legal entity with authority to act and have liability separate from its owners

hierarchy

a system or organization in which people or groups are ranked one above the other according to status or authority.

Goal Setting Theory

a theory that says that specific and difficult goals, with feedback, lead to higher performance

publicly held

allows public invesments more stock holders regulated by the sec

2. Organizations that require consistent production standards to help create a high-quality public image would tend to favor A. centralized authority. B. an inverted organization. C. a high level of employee empowerment. D. flat organizational structures.

centralized authority

One of the most difficult management challenges today is managing change. Why is this? A. Change requires cooperation and an awareness of a need for change. B. Change requires a lot of bailout money from the government. C. Change requires decentralization of decision making. D. Change will invariably result in an inverted organization and management does not want to relinquish its position power in order to make that happen.

change requires cooperation and an awareness of need for change

Controlling involves

checking to determine whether goals and objectives are being met, and taking corrective action if they are not.

Brainstorming

coming up with as many solutions to a problem as possible in a short period of time with no censoring of ideas

a basic difference between goals and objectives is that goasl are A. precise, while objectives are vague. B. set by tactical plans, while objectives are set by strategic plans. C. set by middle management, while objectives are set by first-line managers. D. concerned with broad, long-term accomplishments, while objectives focus on specific short-term details.

concerned with broad long-term accomplishments while objectives focus on specific short-term details.

leading

creating a vision for an organization and communicating, guiding, training, coaching and motivating workers so that they can work effectively toward achieving an organization's goals.

Organizing

creating the conditions and systems in which everyone and everything works together to achieve an organization's objectives. Many of today's organizations attempt to organize in ways that enable them to please their customers at a profit

tactical planning

devloping detailed short term statement about what is to be done who is to fo it and how to be done

Promote corporate ethics

embrace change stress accountability and responsibility

Which statement about worker motivation is most consistent with the findings of the Hawthorne studies?. A. Worker motivation will fall significantly if lighting conditions, temperature, and other elements of the physical environment are not kept at their optimal levels. B. Employees are more motivated if they feel they are part of a special group or project. C. The best way to motivate employees is to offer pay raises, bonuses, and other financial incentives. D. Worker motivation is not important in determining the level of worker productivity because productivity is primarily determined by external factors such as the speed of the machinery the employees operate

employees are more motivated if they feel they are part of a special group or project

challenges

employees have tendency to do things the way they always have managers stock to their years of experience at one way costly to get rid of old inefficient facilities and equipment

According to equity theory, which statement is most accurate? A. The best way to motivate employees is to offer everyone the same reward. B. Employees' perceptions of fairness will affect their level of motivation. C. Employees generally do a good job of estimating their contributions to a firm. D. In the United States, employees tend to focus on their own situation and pay little attention to the efforts and rewards of other employees.

employees perception of fairness will affect their level of motivation

Melissa has been an assistant at Star Equity Bank for more than 14 years. She earns a good salary and has made friends at work, but she has been passed over for promotion twice and feels that no one appreciates her abilities and skills. Melissa is concerned with satisfying her A. physiological needs. B. social needs. C. safety needs. D. esteem needs.

esteem

Christa's supervisor was so impressed with her efforts in the marketing program that he named her the employee of the month. This praise from her supervisor is an example of a(n) __________ reward. A. extrinsic B. intrinsic C. secondary D. extraneous

extrinsic

top management

highest level of management, consisting of the president and other key company executives who develop strategic plans

Fayol believed that decision-making authority should remain in the hands of top management A. in small organizations, but should be delegated to middle and first-line managers in large organizations. B. in large organizations, but could be delegated to middle and first-line managers in small organizations. C. in all types and sizes of organizations. D. only in organizations subjected to significant government regulation.

in small organizations but should be delegated to middle and first line managers in large organizations

Mcdoalds

initial downpayment of a minimum 500,000 in liquid cash franchise fee of 45,000

Strategic Planning

involves setting the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals. The setting of broad, long-range goals by top managers. This type of planning looks at which customers to serve, what products or services to offer, and the geographic areas where the firm will operate.

. Which activity is part of the planning function of management? A. Assigning a particular worker to do a specific task B. Looking at market forecasts to identify future business opportunities and challenges C. Praising a sales representative who has far exceeded her monthly sales objectives D. Conducting a job interview with a potential new employee

looking at market forecasts to identify future business opportunities and challenges.

privatley held corporation

no public invesments fewer stock holders not regulated by sec

aquisition

one companys purchase and own the property and obligation of another company A+B=A (Amazon aquired whole foods).

limited partnership

partnership in which only one partner is required to be a general partner. The general partner may be a corporation instead of an individual. A limited partner invests money in a partnership but cannot legally take an active role in its management.

General Partnership

partnership in which partners share equally in both responsibility and liability

Maslow's Hierarchy of Needs

physiological, safety, love/belonging, esteem, self-actualization safety social esteem self actualization

Functions of Management

planning, organizing, leading, controlling

type of leaders in the future

provide vision establish corporate values

restructing

redesigning an organization so that it can more effectively and efficiently serve its customers

Supervisory Management

responsible for supervising workers and evaluating their daily performance

Fredrick Taylor

scientific management

extrinsic rewards

something given to you by someone else as recognition of good work' -praise -pay raise -promotions

Holden is part of a group of managers at Community Engineering examining whether the company should offer some significant new services that would increase business by appealing to a different group of potential clients. Holden's group is involved with A. contingency planning. B. operational planning. C. strategic planning. D. tactical planning.

strategic planning

SWOT analysis

strengths, weaknesses, opportunities, threats

intended study and research (EM)

study worker efficiency under different levels of light

Scientific Management

studying workers to find the most efficient ways of doing things and then teaching people those techniques

vertical merger

the combination of two or more firms involved in different stages of producing the same good or service (Ebay + Paypal)

Departmentalization

the dividing of organizational functions into separate units

Equity Theory

the idea that people are happiest with relationships in which the rewards and costs experienced by both parties are roughly equal

conglomerate merger

the joining of firms in completely unrelated industries (ge, p&g etc)

horizontal merger

the joining of two firms in the same industry (exxon +Mobile)

chain of command

the line of authority that moves from the top of a hierarchy to the lowest level

intrinsic rewards

the personal satisfaction and enjoyment felt after attaining a goal pride in performance sense of achievement

Transparency

the presentation of a company's facts and figures in a way that is clear and apparent to all stakeholders

Planning

the process of anticipating future events and determining strategies to achieve organizational objectives in the future

Strateguc planning

the process of developing and maintaining a strategic fit between the organization's capabilities and its changing marketing opportunities.

Hawthorne effect

the tendency for people to behave differently when they know they are being studied

core competencies

those functions that the organization can do as well as or better than any other organization in the world

2. A merger involving a commercial bakery and a grocery retailer would be an example of a __________ merger. A. horizontal B. vertical C. linear D. conglomerate

vertical

ethical decisions

weighing potential course of action against ethical standards

middle management

who are responsible for tactical planning and controlling

organizational or corporate culture

widely shared values within an org that provide unity and cooperation to achieve common goals.

further study and interview those workers (EM)

workers felt special workers ideas are accepted workers are more stratified by their special working atmosphere