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