BUS 105
"Maslow's Hierarchy of Needs"
Physiological, Safety, Social, Esteem, and Self-actualization. When 1 need is satisfied another higher lever need emerges. What would happen if you didn't do your job? It's A Wonderful Life scenario.
4 Key Functions of Management + Details of the "Leading" Function.
Planning, Organizing, Leading, & Controlling. Leading is creating a vision for the organization and communicating, guiding, training, coaching and motivating others to achieve goals and objectives in a timely manner.
Our Economy
The U.S., like many, has a mixed economy.
* Benchmarking
"Compares an organizations practices, processes, & products against the world's best."
* Demography
"The statistical study of the human population with regard to its size, density, and other characteristics such as age, race, gender, & income."
2 Classes of Bonds/Debenture/Risky
2 different classes of bonds: Unsecured (debenture) not backed by collateral, firm must have excellent credit rating in order to issue and Secured (mortgage bonds) backed by collateral, such as land or assets.
Funding for a New Business. What Plan to Prepare?
A Business Plan. This plan consist of 9 sections: executive plan, management team, financial plan, capital required, marketing plan, location analysis, manufacturing plan, and an appendix.
Sole Proprietorship
A business that is owned and ran by one individual. Advantages: Easy to start/ end, being your own boss, pride of ownership, legacy to leave, keep profit, no special taxes. Disadvantages: Hard, unlimited liability, limited resources, large time commitment, few fringe benefits, limited growth & lifespan
"C" Corporation
A state-chartered legal entity with authority to act and have liability separate from its owners. Advantages: Limited liability, ability to raise more $, size, perpetual life, ease of ownership change, easier to attract talent, separate ownership/management. Disadvantages: High initial costs, paperwork, "double" tax, 2 tax returns, size, difficult to terminate, conflicts may arise w/ shareholders.
3 Different Leadership Styles & Situations
Autocratic, Participative, & Free Rein. A: making managerial decisions without consulting others. Effective in emergencies and when absolute leadership/authority is needed. P: involves managers and employees working together to make a decision. May not increase effectiveness but increase job satisfaction. FR: managers set objectives and employees are free to do whatever it takes to get these objectives accomplished. Effective in organizations where employees have leadership skills and do not need to be directed, ex. Dr.s.
Empowerment & Its Affects on the Manager's Role
Empowerment is giving front-line workers the responsibility, authority, freedom, training, and equipment they need to respond quickly to customer request. The manager's role is less that of a boss and director and more of that of a coach, assistant, counselor or a team member.
Adam Smith
Endorsed the freedom to own land & property. The Invisible Hand was the thought that the profits generated would benefit many people. Through its profits, products, & ideas.
Formal & Informal Organizations + Benefits
Formal organization is organizations that give detail lines of responsibility, authority and position. Formal organization that provide helpful guidelines and lines to authority for routine situations. Informal organization is an organization that develops spontaneously as employees meet and form cliques, relationships and lines of authority outside the organization. Informal organization is effective in generating creative solutions to short-term problems and creating camaraderie and teamwork among employees.
Capitalism
Free market economy where the market determines what goods & services are produced, who gets them, & how the economy grows.
IPO + Primary & Secondary Market
IPO: Initial Public Offering. The Primary Market is the IPO, this is where the company makes $. The Secondary Market is when stockholders sell their stock (trading). The company does not make $ in this market.
LLC
Looks like a corporation but is taxed like a sole proprietorship. Advantages: Limited liability, choice of taxation, flexible ownership, flexible distribution of profits. Disadvantages: No stock, limited life span, fewer incentives, taxes (self-employment taxes, Medicare/ SS), paperwork.
Managerial vs Financial Accounting
Managerial: Accounting used to provide info to managers WITHIN the organization. Financial: Accounting prepared for people OUTSIDE the organization.
3 Major U.S. Exchanges
NYSE Euronext, OTC, & NASDAQ.
* Exchange w/o Trading Floor or Building
Over the Counter. A network of several 1000 brokers. Trading is between 2 parties directly, not though an exchange.
Type of Info Found on Balance Sheet
Reports the organization's financial condition on a specific date. Current Assets, Fixed Assets, Intangible Assets, Current Liabilities, Long-Term Liabilities, Owner's Equity.
Characteristics of Successful Entrepreneurs
Self-directed, a strong belief in self, action/goal oriented, highly energetic, tolerant of uncertainty, ability to take risks.
SWOT Analysis
Strength, Weakness, Opportunities, & Threats. The organization's strengths & weakness (internal). Opportunities & threat for/to the organization (external).
Mixed Economy
System in which some allocation of resources is made by the government and some by the market.
3 Key Financial Statements
The Balance Sheet, Income Statement, & Statement of Cash Flow.
4 "P"s of Marketing
The Marketing Mix: Product, Price, Place & Promotion.
SEC
Who is the federal agency charged with the responsibility of regulating the various exchanges.
Assumptions of Theory X & Y.
X: employees dislike work and will avoid it if possible, employees must be forced, controlled, directed or threatened to make them work, and worker needs to be directed, avoids responsibility and has little ambition, motivators are fear and money. Y: people that like work, work toward goals in which they are committed. Seek responsibility, problem solvers, personal intellectual potential is only partially realized.