BUSINESS 101 Midterm-Correct

Value proposition:

The unique benefit a company provides customers who buy their products or services.

Assets:

Things of value owned by a firm.

Franchise

Through a legal arrangement with a company, an individual can own and operate a store. Example: Mom owns real estate franchise

Malware:

Unwanted or malicious software programs designed to damage and exploit computer systems. Examples included Trojan Horses, spyware, ransomware, worms Malware vs Spam Malware: Software that is purposefully designed to destroy, take over, and maliciously take over your system in order to steal your information.

Liabilities:

What a firm owes to its creditors; also called debts.

Unique Value Proposition (UVP):

What an individual company proposes that others don't. What makes one unique compared to others. What makes the company unique and draws in consumers

Barrier Label:

When a talent theme is mistakenly devalued and dismissed as a weakness

Dropshipping:

Wherein the seller accepts customer orders without keeping stock on hand. Ships directly from the producer to the consumer. Online websites use this form in order to not have a physical store. A middle man who never touches the product.

Production

The creation of products and services by turning inputs, such as natural resources, raw materials, human resources, and capital, into outputs, which are products and services Managing this conversion process is the role of operations management

Operations:

The design, execution, and control of operations that convert resources into desired goods and services and implement a company's business strategy.

Inventory management:

The determination of how much of each type of inventory a firm will keep on hand and the ordering, receiving, storing, and tracking of inventory.

Local Area Network (LAN

A collection of devices connected together in one physical location, such as a building, office, or home.

Database:

An organized collection of data stored and accessed electronically.

Shadow Side

Application of talent themes in a negative way

Services

Are intangible offerings of businesses that can't be held, touched, or stored. Physicians, lawyers, hairstylists, car washes, and airlines all provide services."

Natural Preferences:

Are ways we would operate if left to our own devices

Data Literacy

Being able to read data

Profit

The difference between the amount earned and the amount spent in buying, operating, or producing something" (Oxford dictionary). Another way to say this is revenue - expenses. Revenue is what you earn from selling goods and services. Expenses are what it costs you to operate your business.

Revenues:

The dollar amount of a firm's sales plus any other income it received from sources such as interest, dividends, and rents.

Supply chain:

The entire sequence of securing inputs, producing goods, and delivering goods to customers.

Information technology:

The equipment and techniques used to manage and process information.

ESG (Governance)

The internal system of practices, controls, and procedures your company adopts in order to govern itself, make effective decisions, comply with the law, and meet the needs of external stakeholders. Every company, which is itself a legal creation, requires governance

Supply chain sustainability:

The management of environmental, social, and economic impacts, and the encouragement of good governance practices, throughout the lifecycles of goods and services.

Hardware:

The physical components of a computer system.

Corporate Philanthropy:

The practice of charitable giving by corporations; includes contributing cash, donating equipment and products, and supporting the volunteer efforts of company employees.

What is accounting: Accounting:

The process of collecting, recording, classifying, summarizing, reporting, and analyzing financial activities.

Auditing:

The process of reviewing the records used to prepare financial statements and issuing a formal auditor's opinion indicating whether the statements have been prepared in accordance with accepted accounting rules.

Supply chain management

The process of smoothing transitions along the supply chain so that the firm can satisfy its customers with quality products and services; focuses on developing tight bonds with suppliers.

Sensing V. Intuition (The Myers-Briggs Framework)

The sensing type prefers concrete things, whereas intuitives prefer abstract concepts

Shareholder vs. Stakeholder

The terms shareholder and stakeholder are sometimes used interchangeably, but they're actually quite different. A shareholder is someone who owns stock in your company, while a stakeholder is someone who is impacted by (or has a "stake" in) a project you're working on

At the base of the corporate social responsibility pyramid is:

economic responsibilities

Inputs:

natural resources, raw materials, human resources, and capital

Critical thinking is:

objective analysis and evaluation of data to form a judgment.

The __________ is the starting point for building an argument in support of a point of view or a course of action.

problem, question, or opportunity

Outputs

products and services.

Profit is ____ minus ______.

revenue, expenses

Stakeholder

Anyone involved with or affected by an organization - such as shareholders, customers, employees, community members, etc. Basically individuals or groups to whom a business has a responsibility; include employees, customers, the general public, and investors. Typical stakeholders are investors, employees, customers, suppliers, communities, governments, or trade associations. ***ESG tries to get you to focus on Stakeholders***

Goods

Are tangible items manufactured by businesses, such as laptops.

Which of the following best describes revenue?

Assets Sales ******** Correct Answer Cash Inventory

Accounting equation:

Assets = Liabilities + Owner's Equity

Many large companies entrust an executive with managing all information resources. What is a typical title for this position?

Chief Information Officer (CIO)***** Correct Answer Chief Knowledge Officer (CKO) Chief Technology Officer (CTO) Chief Executive Officer (CEO)

__________________ involve(s) analyzing data at a deeper level using reason and logic, discerning the interests of various stakeholder groups, differentiating facts from opinions, and evaluating the data sources for validity and reliability.

Critical reasoning and evaluation

Supply Chain Management (SCMT)

Moving a product from one place to another; they recommend ways of adapting to external demands efficiently.

Which of the following includes the critical thinking steps in the correct order?

Organize the information, define the problem, analyze the data, construct arguments that address the problem, critique the arguments, communicate your conclusions.

Natural resources, raw materials, human resources, and capital are examples of:

Outsourcing Compensation Outputs Inputs ******* Correct Answer Inventory

Virtual Private Networks (VPN):

Private networks that are connected over a public network such as the internet. Strong security measures allow only authorized users for these networks.

Which of the following would be included on the income statement?

Revenue ****** Correct Answer Cash Assets Liabilities

Profit

Revenue - Expensive. Gross Income - Cost of goods sold = Net Income/Profit The money leftover after expenses are paid. Net Income (money after expenses) Notes: Net Income (profit) -Gross Profit-Other Expenses

How do you calculate gross profit

Revenue - cost of goods sold = Net Income/Profit (Gross profit, also called gross income, is calculated by subtracting the cost of goods sold from revenue

Which of the following is not an example of malware?

SPAM Virus Trojan Operating System- ********* Correct Answer

Cost of Goods Sold is: Salaries The cost to buy or produce a firm's goods Advertising Revenue minus expenses

Salaries The cost to buy or produce a firm's goods ****Correct Answer Advertising Revenue minus expenses

Database management system

Software that allows you to quickly and easily enter, store, organize, select, and retrieve data in a database. It tracks the data and allows users to query the database for the information they need.

Word Processor:

Software that is primarily designed to help with the input, editing, formatting and output of text.

_____ are all the individuals or groups to whom a business has a responsibility.

Stakeholders

Which financial statement would show investors a firm's revenue?

Statement of revenue Income statement **** Correct Statement of assets Balance sheet

Information Systems:

Systems that allow users to leveraging technology, information, and people to further organizational goals

Management Info Systems (MIS)

Systems that you use to manage information Example: chalkboard, Computers (google docs, word), tablets The ways we secure the information / Security of information Example: Passwords to log on, some form of protection regarding info

Marketing (MKTG)

Taking a product to market and thinking of ways to best motivate, recruit, and strengthen human relationships. Creating and communicating information to customers: (Marketing)

Target Information Breach

Target did not have their information/data segmented which allowed a third party to breach and capture a large portion of information.

Procurement:

The action of obtaining equipment or supplies for a business

Gross profit:

The amount a company earns after paying to produce or buy its products but before deducting operating expenses. Notes: Revenue - cost of goods sold All the money coming in - expenses directly related to production Revenue - COGS = Gross Profit

Expenses:

The costs of generating revenues.

Social Investing:

The practice of limiting investments to securities of companies that behave in accordance with the investor's beliefs about ethical and social responsibility to encourage businesses to be more socially responsible.

Information security:

The processes and tools designed and deployed to protect sensitive business information from modification, disruption, destruction, and inspection.

Software:

The set of instructions, data or programs used to operate computers and execute specific tasks.

Owners' equity:

The total amount of investment in the firm minus any liabilities; also called net worth. Includes owners' investments (stock issued for a public company), net income, minus dividends since the inception of the company.

Cost of goods sold (COGS)

The total expense of buying or producing a firm's goods or services. Notes: How much raw materials cost How much does labor cost Any money directly related to the production of a good or acquisition of the product. Labor directly related and involved in the production of a good or service is included Advertisement and the Salary of the manager or president of the company are NOT INCLUDED . . .

Traditional purpose of a business:

To maximize the value of the firm to its owners" (book, Chapter 16 - introduction). Another way of saying this that you will likely hear in many classes is to maximize shareholder's wealth. Traditionally, we have thought the best way to do that is to increase profit.

Triple Bottom Line:

Triple bottom line is an accounting framework with three main components: social, environmental, and financial. Companies incorporating this framework believe that, instead of a single bottom line, there are three: people, planet, profit

The purchasing function, sometimes called _____, is an important part of any firm's production strategy.

delivery coordination recruitment procurement ***** Correct Asnwer buying procedure

The _____ is the entire sequence of securing inputs, producing goods, and delivering goods to a customers.

demand chain channel of distribution product life cycle production life cycle supply chain ****** Correct Answer

Wide Area Network (WAN

A computer network in which the computers connected may be far apart, generally having a radius of half a mile or more.

Enterprise Resource Planning Systems

A computerized resource-planning system that incorporates information about the firm's suppliers and customers with its internally generated data.

Spreadsheet:

A file made of rows and columns that help sort, organize, and arrange data efficiently, and calculate numerical data.

Balance sheet:

A financial statement that summarizes a firm's financial position at a specific point in time Notes:Assets What you physically have Liabilities How much one owes Stockholders' equity (SHE) How much one owns Assets = Liabilities = SHE Liabilities + equity

Income statement:

A financial statement that summarizes a firm's revenues and expenses and shows its total profit or loss over a period of time.

Shared Value:

A management strategy in which companies find business opportunities in social problems; rather than focusing on "giving back" or minimizing harm, shared value focuses leaders on maximizing competitive value of solving social problems in new customers and markets, cost savings, talent retention, and more.

Wide Area Network (WAN

A private network of an organization that connects computers at different sites.

Learning Management System (LMS):

A type of Management Information System specifically designed for the teaching needs of an educational institution.

Financial accounting:

Accounting that focuses on preparing external financial reports that are used by outsiders such as lenders, suppliers, investors, and government agencies to assess the financial strength of a business.

Managerial accounting:

Accounting that provides financial information that managers inside the organization can use to evaluate and make decisions about current and future operations.

ESG (Social)

Addresses the relationships your company has and the reputation it fosters with people and institutions in the communities where you do business. S includes labor relations and diversity and inclusion. Every company operates within a broader, diverse society.

Revenue:

All money coming in. Gross Income (Total amount/entirety of money)

Certified public accountant (CPA

An accountant who has completed an approved bachelor's degree program, passed a test prepared by the American Institute of CPAs, and met state requirements. Only a CPA can issue an auditor's opinion on a firm's financial statements

Chief Information Officer (CIO) / Chief Technology Officer (CTO):

An executive with responsibility for managing all information and or technology resources in an organization.

Intranet:

An internal corporate-wide area network that uses internet technology to connect computers and link employees in many locations and with different types of computers.

SPAM

Any unwanted, unsolicited digital communication that gets sent out in bulk. These messages could include harmless marketing message or attempts to steal or access important information.

Raw materials (Most Likely Multiple Companies Producing) To Supplier To Manufacturing To Distribution To Retail To Customer

"One Organization's customer is another's supplier" What is a retailer? Business selling to final consumer What Is a Wholesaler? Business/supplier selling other businesses in bulk What About Sam's/Coscos Privatized Wholesale Pay a membership fee

Bloom's Taxonomy

1. Knowledge: Surface level 2. Comprehension: Understand ending 3. Application: Using in life 4. Analysis: Breaking it down 5. Synthesis: 6. Evaluation When writing or presenting, Keep audience and purpose in mind

Six steps for demonstrating Critical Thinking

1. Organize the information 2.Define the problem 3. Analyze the data 4. Construct arguments the address the problem 5. Critique the argument 6. Communicate your conclusion.

Six Steps For Demonstrating Critical Thinking (REPEATED)

1. Organize the information Identify info Categorize and classify data Decide what information might be missing 2. Define the problem 3. Analyze the data 4.Construct arguments that address the problem 5. Critique the arguments 6. Communicate your conclusions

Talent x Investment =

= Strength

Corporate Social Responsibility

A business' concern for the welfare of the society is called

UN SDGs

A collection of 17 interlinked global goals designed to be a "blueprint to achieve a better and more sustainable future for all"

Equity

A form of business financing consisting of funds raised through the sale of stock (i.e., ownership) in a business My definition: What value a group has/brings The quality of being fair and impartial . . . . . . the value of the shares issued by a company. Equal: standard that people are expected to or required to meet v.s. Businesses are trying to expand from just trying to treat people with equity. Giving people compensation in order reach a certain standard.

Internet:

A large, usually public, network of interconnected computers.

Greenwashing

A marketing ploy to entice consumers. Companies say they are environmentally friendly.

Responsible Investing:

A philosophy that includes ESG factors during the investment selection, portfolio construction, and monitoring processes, with the goal of maximizing opportunities, ensuring high performance, and mitigating risks.

Critical reasoning and evaluation

Ability to distinguish between back board options.

Communication effectiveness

Ability to form a logical argument when you speak

Myers Briggs Type Indicator: Four different scales Which side are you naturally on?

E (extroversion) Attuned to their outside environment Prefer face to face communication I (Introversion) Keeps energy and enthusiasm inside Like to think before responding S (sensing) Focuses on facts and details N (Intuition) Focuses on 'big picture' Understanding the main idea Sees patterns and meanings in facts T(Thinking) Like pros/cons listed F(Feeling) Assess impact on people J (Judging) Decision makers Don't like surprises Get things done P (Perceiving) Enjoys surprises and enjoys change Likes taking in information Wondering about things.

ESG

ESG stands for Environmental Social and Governance, and refers to the three key factors when measuring the sustainability and ethical impact of an investment in a business or company

Service Business

Exchange a Service for money. Examples: Lawyers, Uber, etc

Good Business

Exchanges Goods for money. Examples: fast food, clothing stores, etc

Extraversion/Introversion (The Myers-Briggs Framework)

Extraverts get their energy from being around other people, whereas Introverts are worn out from other people and need solitude to recharge their energy

From an information technology perspective, data and information are the same thing.

False

Wired Local Area Networks and "WANs" are the same thing.

False

Watch Linked In Video Test questions on MIS will be derived from this short video.

Find Link

Finance (FINC)

Forward looking; like financing a house/car What are ways I can take the income opportunities I can use to purchase something I can not afford at the moment.

MIS (Management Information Systems)

Functional area of business. System that helps you manage information/businesses. Learning about systems and which one is best. Security of these systems. MIS people keep track of possible information which will affect the business. MIS people keep track of users of information. MIS people analyze systems they should use to manage this information.

Greed in Capitalism

Greed pushes people to work harder Greed drives competition

To Be A Good Writer

Have to keep audience and purpose in mind.

Functional areas of business

IT is important to understand business as a whole - how all the parts work together. Regardless of what major you choose it is also important to Understand all parts of business and how they relate to each other. A focus of this course will be the relationship between all the functional areas: Accounting Finance Management Management information systems Marketing Supply chain management

ESG (Environmental)

Includes the energy your company takes in and the waste it discharges, the resources it needs, and the consequences for living beings as a result. Not least, E encompasses carbon emissions and climate change. Every company uses energy and resources; every company affects, and is affected by, the environment.

Network:

Interconnected computers that share system resources.

An internal corporate-wide area network that uses internet technology to connect computers and link employees in many locations and with different types of computers is known as what?

Internet Sub-system Intranet************** Correct Answer VPN

Who uses Accounting?

Investors Managers Many people use Financial It is important to ensure that Financial Information is accurate in order to ensure that public, private, and non-profit organizations are truthful and intact correctly.

Inventory Management

Involves deciding how much of each type of inventory to keep on hand and the ordering, receiving, storing, and tracking of it. The goal of inventory management is to keep down the costs of ordering and holding inventories while maintaining enough on hand for production and sales.

What is ESG business model?

It measures how your business integrates environmental, social, and governance practices into operations, as well as your business model, its impact, and its sustainability. The three components that make up ESG are environmental, social and governance. Environmental Energy Efficiency GHG (Greenhouse Gas) Emissions Deforestation Circular Economy Water Management Social Diversity and Inclusion Working Conditions Employee Relations Community Relations Human Rights Governance Risk Management Executive Compensation Reporting and Disclosure Board Structure Cybersecurity

Accounting (ACCT)

Keeping track of money and numbers in order to help people of companies save money or perform better in the future.

Logistics

Logistics activities are usually the responsibility of the marketing department and are part of the large series of activities included in the supply chain, The coordination of a complex operation involving a large amount of people, facilities, or supplies According to the council of supply chain management professionals, the part of the supply chain management that plans, implements and controls the forward and revers flow and storage of goods, service and related information between the point of origin and point of consumption to meet the customer's requirements

Which of the following should not be included in the critical thinking process of organizing the information?

Making judgments or conclusions.

Management (MGMT)

Making sure the human resources are up to par. Like Buzz Williams and Jimbo Fisher

_____ is the management of the production conversion process for both goods and services.

Manufacturing Functional management Operations management******** Correct Answer Specialization Total quality control

_____ is the process that converts inputs into outputs that can be sold as goods and services.

Marketing Operations Specialization Production *********** Correct Asnwer Mechanization

Cross-Functional Teams

My definition: Cross functional teams are groups of people from various departments in an organization—such as marketing, product development, quality assurance, sales and finance—who work together to achieve a common goal.

Corporate Culture

My definition: How a business (employees and management) conducts themselves and interacts outside a business transaction. Corporate culture refers to the beliefs and behaviors that determine how a company's employees and management interact and handle outside business transactions.

Inclusion

My definition: Making sure everyone/thing is involved. To be included. Proactive , on the leader's part, in order to get everyone involved.

Diversity

My definition: Having a group with many different skills, styles, and backgrounds Variety! Is the presence of differences Primary Something you have zero control over. Secondary Things you decided about religion Workplace What position you have in a company Style

Private traded companies

Not on stock market Can buy stock in private enterprise by communicating with owners.

Publicly traded companies

On stock market Can by stock

Shareholder:(or stockholder)

Owns a share of a company's stock. A shareholder could be an individual, a company, or an institution (financial, educational, medical, etc.). A common stock shareholder has the right to vote on major decision made by the company. A shareholder hopes the stock's value will increase and or the company will pay a dividend (a distribution of the company's earnings). Stockholders (or shareholders) are the owners of a corporation, holding shares of stock that provide them with certain rights.

Operations Management

Part of the business that manages the transformation of inputs into outputs that customers demand. A specialized area in management that converts or transforms resources (including human resources) into goods and services. Related to Production

Judging vs. Perceiving (The Myers-Briggs Framework)

People who are the judging type enjoy completion or being finished, whereas perceiving types enjoy the process and open-ended situations Approaching tasks by planning and setting goals vs preferring to have flexibility and spontaneity when performing tasks Whether a person prefers order and control or acts with flexibility and spontaneity

Environmental Supply Chain

Pollution, Raw Materials

Accounting (continued)

Prepares and analyses financial information Accounting is the language of business

Procurement or Purchasing

Purchasing, or procurement, is the process of buying production inputs from various sources. production-planning process

The Push behind ESG

Purported to stop valuing companies by how much money they make money. Change the evaluation based on how responsible they are.

Constructing and critiquing an argument

Put forward a position on something and defend it with evidence and logic.

Income Statement

Revenue The money coming in. Has no information about profit. A financial statement that reports a company's revenues and expenses and resulting net income or net loss for a specific period of time.

Outsourcing

Sending domestic jobs to another country is called outsourcing, a topic you can explore in more depth. Many U.S. companies, such as Dell, IBM, and AT&T, have set up call service centers in India, the Philippines, and other countries.

_____ is the concern of businesses for the welfare of society as a whole.

Social responsibility

A Goal of Supply Chain Management is to make the chain as streamlined and efficient as possible.

Some Suppliers will start to sell their own products to consumer in order to maximize profits. Companies as a whole are attempting to be completely aware of the entire process; they are trying to see if the process is environmentally stable, are workers being treated good, Government Might get involved with supply chain in order to make it better for various reasons.

Social Supply Chain

Sweatshops, labor

Talent

Talent: Something you are naturally good at, need to work/practice to make into a strength

Businesses are organizations that strive for _______ by providing goods and services desired by its customers.

a profit