FBLA Introduction to Business Procedures (Complete) [States]
Caveat Emptor
"Let the buyer beware."
Narrow Span
- A high level of interaction required - High frequency of new problems
Why are performance appraisals beneficial?
- Allows managers to make objective HR decisions. - Informs employees how well they're doing; how they can do better. - Helps the company monitor its selection, training, and development activities.
What are some air pollution problems?
- Aviation emissions of carbon dioxide are contributing to global warming. - Weather and geography contribute to air pollution.
Why do people think businesses should engage in social responsibility?
- Business is a part of society. Therefore, they cannot ignore social issues. - Businesses have the resources to tackle social issues. - Businesses can create a stable environment for long-term profitability. - It prevents increased government intervention.
What are some examples of internal influence that encourage ethical behavior?
- Code of Ethics - Employee Training
What are the disadvantages of a joint venture?
- Complexity of agreements. - High level of commitment required of all parties.
How can services be described?
- Consumed immediately - Provided when and where the customer desires - Usually labor intensive - Intangible
What are the advantages of a partnership?
- Easy to start - Capital is available - Combined skills and knowledge - Retention of profits - No special taxes
What are the advantages of a sole proprietor?
- Easy to start and cancel - Pride of ownership - Flexibility - No special taxes - Retention of profits
What are the disadvantages for a franchisor?
- Failure of the franchisee to operate properly - Disputes and lawsuits by franchisees over franchise terms
What are the disadvantages for a franchisee?
- Franchisor retains much control over activities
What are the disadvantages of a corporation?
- Government regulation and increased paperwork - Difficulty and expense in formation - Double taxation - Lack of secrecy
What are some examples of external influence that encourage ethical behavior?
- Governmental - Trade Association
What are some water pollution problems?
- High levels of pollutants still remain. - Cleanup is complicated and costly. - Acid rain from sulfur emissions of industrial smokestacks.
Human Resource Planning
- How many employees? - What qualifications?
What are some land pollution problems?
- How to restore contaminated land. - How to protect unpolluted land. - Shortage of landfill space for waste disposal. - Incinerators help solve the landfill problem, but produce toxic ash. - Other causes include strip-mining, cutting of forests, and using agriculture land for housing and industry.
What are the disadvantages for licensing?
- Image impacted if standards not upheld. - Original producer does not gain foreign marketing experience.
What are the advantages of a joint venture?
- Immediate market knowledge. - Reduced risk. - Control over the product.
What are some characteristics of a pure competition?
- It is easy to enter leave the market - All prices are basically the same
What the advantages of a corporation?
- Limited liability - Easy to raise capital - Specialized management
What are some characteristics of a monopoly competition?
- No competition - Great degree of power - Power of pricing - Hard to enter and leave the mark
Psychological Pricing
- Odd-number - Multiple-unit - single price for two or more units. - Bundle - complementary products at a single price - Everyday low prices (EDLPs)
What are the advantages for a franchisee?
- Opportunity to start a proven business with limited capital - Guaranteed customers - Available guidance
What are the five P's of entrepreneurship?
- Planning - Persistence - Patience - People - Profit
What are the 4 P's of the marketing mix?
- Price - Promotion - Place - Product
What are examples of selection?
- Resumes - Applications - Employment tests - Interviews - References - Social media
What do small businesses fail?
- Several years to profit - Time - Money - Over - Overexpansion
What are some characteristics of a monopolistic competition?
- Similar products, different characteristics. - Good degree of information (not perfect though). - Most common type of market. - Easy to enter and leave the market.
What are some characteristics of a oligopoly competition?
- Sizable investment needed to enter. - Compete on price and characteristics.
Wide Span
- Standard operating procedures - Few new problems
Why don't people think businesses should engage in social responsibility?
- The focus should be on providing a return on investments. - Business resources should be used to maximize profits, not solve social issues. - Problems affect society in general, so businesses should not be expected to solve them. - Social issues are the responsibility of government officials.
What are the disadvantages of a sole proprietor?
- Unlimited liability - Lack of capital - Limited management skills - Difficulty in recruiting
What are the disadvantages of a partnership?
- Unlimited liability - Management disagreement - Frozen investment
What are examples of external influence?
- Websites - Want ads
What are the advantages for a franchisor?
- Well controlled distribution of products - Leaves capital for expanded production and advertising - Motivated work force of franchisees
Board of Directors
A group of people elected by the stockholders of a corporation to set the policies for the corporation.
Organization
A group of people who work together to achieve goals. NOTE: May or may not be a business.
Minorities
A group of people with physical or cultural traits different from those of the dominant group in the society.
Monopolistic Competition
A large number of small businesses that sell similar products.
Autocratic
A leadership style when workers told what to do and how to do it.
Retention schedule
A list of how long each type of record should be kept
Chain of Command
A list of who reports or answers to whom.
Hard disk
A magnetic medium used to store electronic data that can be read by a computer
Operations Manager
A manager who manages systems that convert resources into goods and services.
Teleconference
A meeting of people in different locations conducted using telecommunicating equipment
Sales channel
A method of marketing products such as through retail stores or catalogs
Factory System
A method of production that brought many workers and machines together into one place.
Internal control
A method used by a business to safeguard assets
Embargo
A nontariff barrier that halts trading with a particular nation or in a particular product.
Import Quota
A nontariff barrier that limits the amount of a good that can be imported.
Currency Devaluation
A nontariff barrier that lowers the value of a nation's currency relative to the currencies of other nations.
Foreign Exchange Control
A nontariff barrier that restricts foreign currency.
Monopoly Competition
A one seller market.
Target Market
A particular group of consumers at which a product or service is aimed.
Limited Partnership
A partnership that includes at least one general partner who actively manages the company and accepts unlimited liability and one limited partner who gives up the right to actively manage the company in exchange for limited liability.
Stockholder
A person who owns a corporation's stock.
Data mining
A process in which a software program searches for significant patterns in data
The Right to Safety
A product must be safe and should warn us of dangers.
Affirmative Action Programs (AAP)
A program that requires companies doing business with the federal government hire minority, female, and handicapped employees.
Newsgroup
A publication of online articles and messages related to a certain topic
Interactive voice response
A recorded message accessed and directed by the use to provide or record information
Orientation
Acquainting new employees with the firm.
What are the four resources a business needs in order to be successful?
Human resources, material resources, informational resources, and financial resources.
Analytical Skills
Identify problems, generate alternatives and select the best solution.
Job Redesign
Involves the restructuring of a job, usually with the employees' involvement and agreement to make it more interesting.
What is true of centralized organization?
It gives all authority to top-level management
Benefits
Rewards in addition to compensation. Ex: Pay for time not worked, insurance packages, health insurance, parking, etc.
Demographic data
Statistics that describe a population such as age or race
Franchisor
The giver of the franchise.
Job Sharing
To share the responsibilities and duties of a single full time job with one or more other employees.
Inflection
Tone of voice
What are the three levels of management?
Top management, middle management, and first-line management.
Human Resource Developing
Training and development.
Simulation Training
Training that replicates the work environment.
Dual Branded Franchise
Two franchisors offer their products together. Ex: Baskin Robin's and Dunkin' Donuts
Vertical Merger
Two or more firms involved in different stages of producing the same good or service. Ex: Twitter + Apple
initiative
ability to act or think without prompting or guidance
proficiency
ability to perform at a satisfactory level
virtual training
allows people to simulate real situations using a computer
database program
allows you to collect, store, and organize data, such as contact information for you customers, suppliers, and vendors
documentimaging system
allows you to covert paper into electronic files
telecommuting
an arrangement that allows employees to work at home while communicating with the workplace by phone, fax, or modem
virtual reality
an artificial, three-dimensional visual world created by a computer
Money laundering
an ethical business issue that is associated with human relations;
extranet
an extension of the intranet of a compnay or organization that gives authorized outsiders controlled access to the intranet
decentralized organization
an organization that gives authority to a number of different managers
centralized organization
an organization that puts authority in one place, with top management
line and staff authority
an organizational structure with direct lines of authority as well as staff who advise line personnel
owner's equity
an owner's claims to the assets of a business
nonterritorial workspace
area not assigned to a specific person or task
accounting equation
assets = liabilities + owner's equity
current assets
assets that are either used up or converted to cash during the normal cycle of the business
hoteling
assigning temporary office workspace to workers as needed
online
available in electronic format such as on the Internet or an intranet
speech recognition software
computer programs that allow the user to input text and commands by speaking into a microphone
World Wide Web
computers on the Internet that use and transmit HTML documents
franchise
contractual agreement to use the name and sell the products or services of a company in a designated geographic area
Federal Trade Commission
created by the federal government to enforce antitrust laws
What is NOT an aspect of the organizing function?
creating strategies
liabilities
creditors' claims to the assets of a business
CRM software
customer relationship management software used for sales and marketing, which organizes contact information for current and prospective customers, and allows multiple users to track customers' buying habits
What term refers to management responsibility divided among managers?
decentralization
reliable
dependable, trustworthy
ergonocis
design factors for the workplace that are intended to maximize productivity by minimizing a worker's discomfort
Hardware
desktop computers, laptops, phones and wireless devices
departmentalization
dividing responsibility among specific units, or departments
financial statements
documents summarizing the changes resulting from business transactions that occur during an accounting period
What usually comes at the end of a resume?
education section
ezine
electronic magazine available on the World Wide Web
ERP system
enterprise resource planning system that pulls from both hardware and software programs to integrate various functions, such as distribution, shipping, and invoicing. It can be used to help a business owner figure out the amount of inventory needed to prevent overstocking.
total quality management
establishing and maintaining high standards in how work is done
projection
estimates or guesses about the future based on known data
financial forecast
estimates the financial outlook for a business over the next few years
mainframe
fast, powerful computer with a large storage capacity
What is the disadvantage of having a totally owned facility?
It's risky.
A ____ is a good opportunity to ask specific questions about the job opening, career paths, and the company.
Job interview
Which is NOT a common time-waster on the job?
Keeping a time log
Inventory Control
Keeping track of the amount of product on hand, sold, and on order.
Factors of Production
Land, labor, and capital.
Lecture Training
Large groups needing the same information.
Pure Competition
Large number of small that businesses that sell the same type of products with the same characteristics.
Articles of Partnership
Legal documents that set forth the basic agreement between partners. Ex: Duties of each partner, how much each partner will invest, and how the partnership can be dissolved.
Accession log
List of numbers assigned in a numeric filing system
Penetration Pricing
Low price for a new product; quickly build market share.
Postage meter
Machine that prints postage in the amount needed
How do you implement lean manufacturing?
Make business investments in facilities, equipment, and training.
Time Utility
Making products available when they're needed (this adds value).
What is a disadvantage to the line authority structure of management?
Managers sometimes lack the specialized help they need.
Lean Manufacturing
Manufacturing whose goal is to eliminate waste in all aspects of the process (saves time and money).
Coding
Marking a record to indicate how it was indexed
Speech recognition software
Computer programs that allow the user to input text and commands by speaking into a microphone
How can you control inventory?
Computerized systems.
Prejudgments
Conclusions reached before having full information
The Right to Courteous Service
Consumers are entitled to convenience, courtesy, and responsiveness from manufacturers and sellers.
The Right to be Informed
Consumers have access to complete information about a product before they buy it.
The Right to be Heard
Consumers have the right to complain about a product and to be listened to.
The Right to Choose
Consumers should have access to a variety of products and services at competitive prices.
Pollution
Contamination of Earth's land, water, and air.
Corporate Charter
Contract between the company and the state; state recognizes the artificial person.
Electronic imaging
Converting paper documents to pictures stored and displayed via computer
Micrographics
Converts documents to very small photographs for storage on microfilm
The laws that regulate which documents or other information can be legally copied are known as:
Copyright laws
Which statement below would be a good way to achieve your career goals?
Educate yourself, get experience in a field you think you would like, and consider an internship.
Personal digital assistant
Electronic device for storing contact information and scheduling appointments and tasks
Optical character reader
Electronic equipment that scans text in a form that can be used by computers
Human Resource Maintaining
Employee relations, compensation, and benefits.
Expectancy Theory
Employees believe the rewards for accomplishing a task are worth the effort.
How can a business be run informally?
Employees can share duties. This is typically for small companies
Flexible Time
Employees may choose whether to be at work.
Employee Ownership
Employees own the company by being stockholders.
Employee empowerment
Enabling employees to make decisions
Scheduling
Ensuring materials and resources are at the right place at the right time.
Quality Control
Ensuring that goods and services are produced in accordance with specifications (to make sure goods are suitable for sale).
At what level do most managers begin their careers?
Entry-level position
Fair Labor Standards Act (1938)
Established a minimum wage and an overtime pay rate.
Total quality management
Establishing and maintaining high standards in how work is done
Planning
Establishing goals and deciding how to accomplish them.
Medium/media
Materials or forms on or in which information may be stored
Seminar Training
Meetings to discuss and exchange ideas.
Equal Pay Act (1963)
Men and women who do equal jobs must be paid the same wage.
This level of management sets goals for specific areas of the business and decides what the employees in each area must do to meet those goals.
Middle Management
Gross salary
Money earned before any deductions are made
Petty cash
Money kept on hand for paying small expenses
Job Rotation
Moving employees from one specialized job to another.
Records disposition
Moving records to permanent storage or destroying records
Brand
Name, symbol, term, and design.
bureaucracy
formal organization with several levels of management
Demographic
gender, age.
GAAP
generally accepted accounting principles which are rules that provide a way to communicate financial information to others
What is a disadvantage to being a manager?
getting blamed when things go wrong
delegating
giving managers and employees the power to run things and make decisions
general managing
handling work time and tasks efficiently, creating and monitoring schedules, and tracking and reporting the progress of tasks or projects
What traits do employers value?
hard work, honesty, dependability, and an ability to finish tasks
accounting software program
helps organize your business finances, track outstanding invoices and figure out how much cash your company has available.
What is NOT part of the leadership function for a manager in charge of a project?
hiring employees
HTML
hypertext markup language, authoring language, used for World Wide Web and intranet documents
Developing a career plan
identify potential careers, research them, getting involved, set goals
objectively
in a detached manner without bias or prejudice
freelancer
independent contractors who work for others, usually on a project-by-project basis
IT
information technology; using computing, electronics, and telecommunications to process and distribute information in digital and other forms
An ideal leader should...
inspire others
telephony
integration of computer and telephone technologies
Each job in a career should build on what?
interests, knowledge, and experience
interactive
involving the user or receiver, exchanging information
What is a noise pollution problem?
Excessive noise due to traffic, aircraft, and machinery.
Electronic funds transfer
Exchange of money by sending bank records via a computer network
What are the advantages for licensing?
Expansion with little investment.
Goal
Expected result over a one-to-ten year period.
Objective
Expected result over a shorter period of time.
If you need to send a business document through the United States Postal Service and you need to get the document to the receiver in one day, which mail service would you use?
Express Mail
Incinerators
Facilities that burn trash at high temperatures.
What do businesses purchase after they sell their goods and services?
Factors of production.
360-Degree Evaluation
Feedback from everyone a worker interacts with on a daily basis.
Net pay
Final earnings amount after all deductions
networking devices
router, hubs, and stitches that tie workstations together and provide security features, such as firewalls
human resources does:
selecting, evaluating, and firing employees
career ladder
series of different jobs within a career
personality
the sum total of a person's feelings, actions, habits, and thoughts
accounts payable
the total amount a business owes to creditors
accounts receivable
the total amount of money owed to a business. It represents money to be recieved in payments after goods or services are sold on credit
telecommunications
the transmission of information over communication lines
analog
transmitted by a single that corresponds to a physical change such as sound
Totally Owned Facilities
Firm's own production and marketing facilities in one or more foreign nations.
Trading Companies
Firms that develop international trade and serve as intermediaries between international businesses. NOTE: Take title to products and move them from one country to another. Or, they just act as a trader.
Nontariff Barriers
Nontax policies that governments enact to discourage imports.
Communication Skills
Ability to speak, listen and write effectively.
Conceptual Skills
Ability to think in abstract terms.
corporation
company that is registered by a state and operates apart from its owners
Steps in Entering International Markets:
1. Find product 2. Find foreign markets for the products 3. Find out how to sell in each priority market 4. Set export prices and payment terms, methods, and techniques 5. Estimate resource requirements and returns. 6. Establish overseas distribution network. 7. Determine shipping, traffic, and documentation procedures and requirements. 8. Promote and sell (of course get paid). 9. Continuously analyze current marketing, economic, and political situations.
What are the 4 steps of behavior modification?
1. Identify 2. Measure 3. Reward 4. Measure
Steps for Planning Production:
1. Research and development 2. Design planning 3. Facilities planning 4. Operational planning
How do you develop a program for social responsibility?
1. Secure the commitment of top executives. 2. Plan the program. 3. Appoint a top-level executive as director to implement the plan. 4. Prepare a social audit.
Maslow's Hierarchy of Needs
1. Self-actualization 2. Esteem 3. Social 4. Safety 5. Physiological
What is the structure of a corporation?
1. Stockholders elect board of directors 2. Board of directors appoint officers 3. Officers hire employees.
General Agreements on Tariffs and Trade (GATT)
164 nations dedicated to reducing or eliminating trade barriers.
What % of corporation businesses are there in the U.S.?
19% (6 million)
How many types of partnerships are there?
2
patents offer protection for how long?
20 years
What % of sole proprietor businesses are there in the U.S.?
72% (23 million)
What % of partnerships businesses are there in the U.S.?
9% (3 million)
Fiscal year
A 12-month period used for financial accounting purposes
Modem
A Device that allows computer data to be transmitted via the telephone system
Franchise
A business operated under an authorization to sell or distribute a company's goods or services in a particular area.
Sole Proprietorship
A business owned by one person.
Partnership
A business owned by two or more people.
International Business
A business that buys, sells, and trades across national boundaries.
Small Business
A business that is independently owned and operated for profit and is not dominant in its field.
Corporation
A business that is owned by many investors.
Open Corporation
A corporation whose stock can be bought and sold by any individual.
Closed Corporation
A corporation whose stock is owned by relatively few people and is not sold to the general public.
Business Plan
A description of the goals of a business and how it will operate.
Organization Chart
A diagram that shows the relationships between personnel in an organization.
Routing slip
A document attached to an item that shows the names of individuals to whom the item should be sent
Referral slip
A document that accompanies items sent to another person and indicates a requested action
Requisition form
A document that has space for charge out information for a record
Voucher
A document that provides information and approval to make a payment
Environmental Protection Agency (EPA)
A federal agency that enforces laws affecting human and environmental health.
Oligopoly
A few large business that sell identical or very similar products. (Ex: Automobiles, oil industries, tire companies, etc.)
Multinational Enterprise
A firm that operates on a worldwide scale without ties to any specific nation or region.
Product Line
A group of closely related product items.
Local area network
A group of connected computers that are closest to each other
Wide area network
A group of connected computers that are separated by long distance
Social Audit
A report of what the organization has done and is doing with regard to social issues.
Income statement
A report that details the results of business operations for a certain period of time
Balance sheet
A report that presents the financial condition of a company as of a specific date
Bank reconciliation
A report used to compare bank and company account records
Sales Forecast
A report, usually prepared by marketing, predicting future sales of a product.
Flextime
A schedule that allows workers to choose work hours that fit their particular needs.
Code of Ethics
A set of guidelines for maintaining ethics in the workplace.
Record management
A set of procedures used to organize, store, retrieve, and dispose records
Job Description
A short few sentences that describes the position and duties a person has.
Endorsement
A signature on the back of a check authorizing a bank to cash or deposit the check
Microfiche
A small rectangular sheet of microfilm that contains a series of records arranged in rows and columns
Tactical Plan
A smaller scale plan developed to implement a strategy.
Relational database
A software program that allows the user to link data from a number of database files or tables to find information or generate reports
Technical Skills
A special skill to accomplish a specialized activity.
Magnetic tape
A storage medium for computer and other electronic data
Relationship Marketing
A strategy that focuses on keeping and improving relationships with current customers.
Capitalism
A system in which individuals own and operate the majority of businesses that provide goods and services.
Barter System
A system in which people buy and sell goods by exchanging one item for another; no money is involved.
Socialism
A system in which the government owns and controls the means of production.
Ethics
A system of moral principles.
Communism
A system where factors of production are owned and directed by the state.
Behavior Modification
A systematic program of reinforcement to encourage desirable behavior.
Equity Theory
A theory that states that people will be motivated when they perceive that they are being treated fairly.
File transfer protocol
A tool that allows files to be uploaded to or downloaded from a remote computer
Network Structure
A type of organizational structure viewed as less hierarchical , more decentralized, and more flexible than other structures.
Operational Plan
A type of plan designed to implement tactical plans.
server
central computer that shares data, files, and applications and allows you and your employees to access the Internet or use the same printer
electronic information transfers
ATMs
Interpersonal Skills
Ability to deal effectively with other people.
Role Playing Training
Acting out the roles of others.
Purchasing
Activities involved in obtaining required materials. Ex: Price, quality, and reliability.
Modulated
Adjusted to a proper level
Kerning
Adjusting the space between characters in text
World Trade Organization (WTO)
Administers the rules governing trade between its 164 members. Helps international business conduct their business and ensure that trade flows smoothly.
Licensing
Agreement where one firm permits another to produce & market its product and use its brand name in return for payment.
Human Resource Management
All activities involved in acquiring, maintaining, and developing an organization's human resources.
Operations
All activities involved in producing goods.
Core Time
All employees are expected to be at work.
Product Mix
All products that an organization sells.
Possession Utility
Allowing consumers to take legal ownership of a product (this adds value).
Strategic Alliance
An alliance formed as a part of a plan with important aims. NOTE: This does not create a 3rd party.
Command Economy
An economic system in which the government controls a country's economy.
Service Economy
An economy in which more effort is devoted to the production of services than to the production of goods.
Surge suppressor
An electrical outlet that controls unexpected sharp increases in electricity
Controller
An employee who oversees company finances
Morale
An employee's feelings about their job and about the firm itself.
Job Enlargement
An increase in job tasks and responsibilities.
Grapevine
An informal communication network along which unofficial information flows.
Extranet
An information network like an intranet but partially available to select outside users
Countertrade
An international barter transaction.
Release mark
An official approval to file a record
Matrix Structure
An organization structure that creates dual lines of authority (vertical and horizontal; the employees of the organization have more than one boss).
Which one of the following steps would NOT help a person learn to listen actively?
Assess the speaker's appearance
Networth (equity)
Assets - liabilities
Delegation
Assigning part of a manager's work and power to others.
Centralized
Authority is concentrated at the upper levels.
Decentralized
Authority is spread in the lower levels.
What is the benefit of countertrade?
Avoids restrictions on converting domestic currency to foreign currency.
Competition
Competing on sales for potential customers.
What do laws protect?
Competition, business agreements, and creative rights
Is it good or bad if imports are greater than exports?
Bad
Companies need to be sure that receipts and payments shown in their records are reflected also in the bank's record. You may have the task of comparing these records to prepare a:
Bank Reconciliation
Continuous improvement
Being alert at all times to ways of working more productively
Can a board of directors be on the inside or outside of the company?
Both
Communications
Business communications that are false, misleading, or deceptive are both illegal and unethical.
Overhead
Business costs not directly related to a product or service sold
Fairness and Honesty
Business people are expected to refrain from knowingly deceiving, misrepresenting, or intimidating others.
Organizational Relationships
Business people should put the welfare of others and the company above their own welfare.
What do marketing intermediaries do?
Buy products and resell them (retailers).
The easiest way to become a business owner is to:
Buy stock in a corporation
What type of economy is the U.S.?
Capitalist
What are the disadvantages of a matrix structure?
Chain of command conflicts, poor communications, and unclear responsibilities.
Form utility
Changing the nature of the good (putting it in a more attractive form for customers).
Satisficing
Choosing an alternative that is not the best, but it solves the problem.
Data processing
Collecting, organizing, analyzing, and summarizing data
Research and Development (R&D)
Combining old and new research and putting the knowledge to use.
Consensus
Common agreement or mutual understanding
To find the working capital of a business, calculate:
Current assets minus current liabilities
Social Responsibility
The duty to do what is best for the good of society. Note: Social responsibility costs money, but is also good for business.
Performance Appraisal
The evaluation of employees' job performance.
Common problems encountered when using the traditional file concept do NOT include:
Data independence
The process of collecting, organizing, analyzing, and summarizing data is known as:
Data processing
Indexing
Deciding how to identify each record to be filed
Operational Planning
Deciding the amount of products the facility will produce.
Strategic Plan
Designed to achieve long-term goals.
Process layout
Different operations required for different parts of a product.
Magnetic media
Disks or tapes used to store documents electronically
data processing
collecting, organizing, analyzing, and summarizing data
What are the advantages of a matrix structure?
Flexibility and higher morale.
How do small businesses provide competition?
Force larger firms to become more efficient and responsive.
What are the four types of utility?
Form, place, time, and possession.
What kind of leader does the most delegating?
Free-rein
Selection
Gathering information and choosing the most appropriate applicant (most appropriate vs. most qualified).
Revenue Tariffs
Generate income for the government. Ex: Barbados has no rice growers. So, they have a tariff of 40% on rice imported from South Korea.
Preferred Stock
Gives its holders certain privileges that common stockholders don't have. If a company pays dividends, preferred stockholders are paid before common ones. Unfortunately, they don't get to vote.
Intermediary
Go-between; mediator.
Is it good or bad if exports are greater than imports?
Good
Small Business Administration (SBA)
Governmental agency that assists and protects the interests of small businesses.
Franchising
Granting of a franchise.
For presentation purposes, a circular or oval arrangement is conducive for:
Group discussions and shared communications
Human Resource Acquiring
HR planning, job analysis, recruiting, selection, and orientation.
General managing
Handling work time and tasks efficiently, creating and monitoring schedules, and tracking and reporting the progress of tasks or projects
Place Utility
Having a product where customers can buy it (this adds value).
What is NOT true of a manager's job?
He or she should spend most of the time doing paperwork
What are the disadvantages of a network structure?
High turnover, low morale, and reliance on outside contractors.
Price Skimming
Highest possible price during the introduction.
Hypertext
Highlighted, underlined, or contrast-colored words or images that, when clicked, takes the user to another location
accounting system
collects, records, and reports financial transactions that affect the operation of a business
Product Refinement
Improving and adding features to a product.
Specialization
In production, a system in which each worker performs a single part of an entire process.
Demand > Supply
Increase the workforce.
Employee Empowerment
Increasing employee participation in decision making.
Whistle-Blowing
Informing the press or government officials about unethical practices within one's organization.
Nonprofit Organizations
Institution that functions much like a business, but does not operate for the purpose of generating profits. Ex: Church, schools, or charities.
Bonding
Insurance for financial loss due to employee theft or fraud
Goal-setting Theory
The theory that people will be motivated to the extent to which they accept specific, challenging goals and receive feedback that indicates their progress toward goal achievement.
Tickler file
Notes or records arranged by date for keeping track or future actions
What classifies a small businesses a small business?
Number of employees and average annual sales.
Information management
Organizing, maintaining, and accessing records or data
Small Business Fact:
Over 70% of small businesses expected to fail within first five years.
Hostile Takeover
Ownership change that occurs when one company purchases large quantities of outstanding stock in another company, thereby giving controlling interest to the acquiring company.
General Partnership
Partnership in which partners share equally in both responsibility and liability
Joint Venture
Partnership set up for a specific purpose for a short period of time. NOTE: A 3rd party is created.
Compensation
Payment employees receive for their labor. Ex: Hourly wage, salary, commissions, incentives, profit sharing, etc.
Commission
Payments bases on the price of items sold
Human Resources
People who provide labor and skills in a business.
Part-time Work
Permanent employment in which individuals work less than a standard work week.
Consulate
Person appointed by a government to serve its citizens and business interests in another country
Workstation
Physical area in which a worker performs a job
Direct deposit
Placing money in a bank account by electronic means rather than issuing a check
Contingency Plan
Plan for unexpected problems (backup).
Floppy disk
Portable magnetic medium used to store small amounts of computer data
Negotiated Pricing
Price through bargaining.
Courier service
Private mail delivery company
Proprietary information
Privately owned information, such as a design or formula, also called intellectual property
Recruiting
Process of attracting qualified job applicants.
Management
Process of coordinating people and resources to achieve the goals of an organization
Work simplification
Process of improving the procedures for doing work
Mass Production
Process of making large quantities of a product quickly and cheaply.
desktop publishing
Producing high-quality printed documents that include both test and graphics
Word processing
Producing written documents such as letters or reports by using software programs and computers
Dividend
Profit distributed over shareholders quarterly.
What should be determined to calculate the earning power of a business?
Profitability ratio
Title VII of the Civil Right Act
Prohibits discrimination in employment practices based on sex, race, color, religion, or national origin.
What are examples of internal influence?
Promotion and transfer.
Information processing
Putting facts or numbers into a meaningful and useful form
Demand
Quantity of a product buyers are willing to purchase.
Supply
Quantity of a product producers are willing to sell.
Microwave transmissions
Radio waves that carry data
Growth
Rapid sales increase; lower price, lower profit. More competition. Improve product or expand product line. Reduce price; broaden distribution (placement).
Currently, it is legal for your employer to:
Read your e-mail
Storyboarding
Recording and organizing ideas, as for a presentation
A computer program that allows electronic tracking and control of records is called:
Records management software
Demand < Supply
Reduce the workforce.
Charging out
Removing a record from the file and recording related information
A schedule that shows how long particular types of records should be stored in a company is called a:
Retention schedule
What is the formula for profit?
Sales revenue - expenses
Maturity
Sales still increasing at slower rate, will decline in later stage. Price competition, more segmented market. Redesign packaging. Encourage new product uses; increase promotional efforts and personal selling
What are major decisions for operational planning?
Select a time period, estimate a market demand, compare market demand to capacity, and adjust capacity to meet demand.
Dumping
Selling large quantities of goods in another country below prices in the home market.
Exporting
Selling or shipping materials to other nations.
Job Specialization/Division of Labor
Separation of activities into distinct tasks and assigning these to different people.
Preventive maintenance
Servicing equipment and replacing parts to prevent failure
What do the board of directors do?
Set corporate goals, develop plans, and are esponsible for firm's overall operation.
Stock
Share of ownership in a corporation.
Decline
Sharp decrease in volume, profits continue to fall. Cover costs, maintain market share, reduce inventory. Retain or eliminate product.
Accounts payable
Short-term debts a company owes
Accounts receivable
Short-term debts owed to a company by others, such as its customers
Conflict of Interest
Situation in which an employee must choose between a business's welfare and personal gain.
What type of economies are in command economy?
Socialism and communism.
Firewall
Software and hardware designed to prevent unauthorized users from gaining access to a computer or network
Project management programs
Software with advanced features for planning large or long-term tasks
What is the simplest for of business ownership?
Sole proprietor
Secondary storage
Storage media or devices outside the internal memory of a computer system
Ergonomics
Study of the effects of the work environment on the health of workers
Job Analysis
Studying jobs to determine their various elements and requirements.
Importing
Taking in materials into one's own country.
Tariff
Tax on a foreign product entering the country.
Limited Liability Company
Taxed like partnership. Avoids double taxation, offers limited liability
Protective Tariffs
Taxes placed on foreign goods, making them less attractive to consumers and thus protecting domestic industries from foreign competition
A(n) ____ is a meeting of people in different locations connected by a telecommunications system.
Teleconference
Syndicates
Temporary association to perform a specific task requiring a large amount of capital. Ex: Insurance and investments.
Periodic Discounting
Temporary reduction on a systematic basis.
Random Discounting
Temporary reduction on an unsystematic basis.
Utility
The ability of being useful (products). Ex: Moreton Bay pine is chiefly known by the utility of its wood.
Leadership
The ability to influence others.
Comparative Advantage
The ability to produce a good at a lower cost than another nation.
Absolute Advantage
The ability to produce something more efficiently than any other nation.
Productivity
The amount of production per worker per hour.
Capacity
The amount of products that can be produced in a given amount of time.
Business Ethics
The application of moral standards to business situations.
Corporate Officers
The chairman of the board, president, executive vice presidents, corporate secretary, treasurer, and any other top executive appointed by the board of directors
Horizontal Merger
The combination of two or more firms competing in the same market with the same good or service. Ex: AT&T + T-Mobile
File path
The compete location designation for an electronic file
Entrepreneurial Spirt
The desire to create a new business.
Design Planning
The development of a plan for converting an idea into an actual product.
Balance of Trade
The difference between a country's total exports and total imports. NOTE: The U.S. has a HORRIBLE balance of trade.
Departmentalization
The dividing of a organization into separate units.
groupware
communication, conferencing, and coordination tool
Motivation
The internal process that energizes and directs behavior.
Conglomerate Merger
The joining of firms in completely unrelated industries.
Domestic System
The manufacture of goods in the household setting; a production system that gave way to the factory system.
Quorum
The minimum number of members that must be present to conduct business at a meeting
How are team leaders like managers?
The motivate other team members
When a letter or memorandum extends beyond one page, the second and succeeding page heading should consist of:
The name of the addressee, the page number, and the date
Resolution
The number of dots per inch in printed text or images
Span of Management/Span of Control
The number of employees reporting to a supervisor.
Business
The organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society's needs.
Bureaucratic Red Tape
The overwhelming amount of government rules, regulations, and paperwork.
Market Price (equilibrium)
The price at which the amount that buyers wish to buy equals the amount that sellers wish to sell.
Common Stock
The primary form of ownership in a corporation. You get a vote in how to run the corporation. Each year the stockholders have a meeting where they vote on various issues and elect members to the Board of Directors.
Facilities Planning
The process of determining where products are to be produced.
Incorporation
The process of forming a corporation. NOTE: consult a lawyer
Reprographics
The process of making copies of graphic images, such as printed documents
Management Development
The process of preparing managers to assume increased responsibility in both present and future positions.
Job Design
The process of specifying the tasks, duties, and responsibilities of a job.
Accounting
The process of systematically collecting, analyzing, and reporting financial information.
Onboarding
The process that a company uses to integrate new employees into an organization.
Merger
The purchase of one corporation by another; essentially an acquisition.
Franchisee
The receiver of the franchise.
Profit
The remains after all business expenses have been deducted from sales revenue.
The Right to Consumer Education
The right to be fully informed about their rights as consumers.
Intonation
The rise and fall in voice pitch
Economics
The study of how wealth is created and distributed.
Microeconomics
The study of the decisions made by individuals and businesses.
Macroeconomics
The study on how the aggregate economy behaves. (Ex: Inflation, price levels, rate of growth, national income, GDP, and changes in unemployment.)
Economy
The system through which a society creates and distributes wealth.
Group dynamics
The way people interact and communicate within a group
What is the benefit of having a totally owned facility?
There is a complete control over operations.
Why is the U.S. a mixed economy?
They include both capitalism and socialism.
What do manufacturing businesses do?
They process various materials.
What does the government do in exchange for taxes?
They provide public services not provided by businesses. (Ex: Law Enforcement, Public Education)
What do service businesses do?
They provide services. (Used as it is purchased) (Ex: Haircuts, legal advice, tax preparation, etc.)
If something is at the tertiary level, it appears:
Third
Individual Branding
Use a different brand for each product.
How can a manager raise the odds that their commands will be accepted and obeyed?
Use formal channels of communication that assigns each organization member a specific one, the line of communication is as direct as possible, the complete chain of command is used to issue orders, the manager possesses adequate communication skills
Family Branding
Use the same brand for all or most of the products.
Audit
Verify or check facts or procedures
Product Layout
When products undergo the same operations in the same sequence (assembly line).
Modular workstation
Work area made up of parts that can be put together in various ways
Telecommuting
Working at home all or part of the work week.
On-the-job Training
Working under the supervision of an experienced employee.
Charter
Written grants of rights from a government
Are businesses that understand customer needs, and work to satisfy those needs successful?
Yes
Do small businesses produce more innovations that large firms?
Yes (2.5 times more) Ex: Airplane, heart valve, penicillin, etc.
intermediary
a business that moves goods from one business to another
organizational chart
a chart that shows how the firm is structured and who is in charge of whom
limited liability
a claim that holds a firm's owners responsible for no more than the capital that they have invested in it
suite
a collection of integrated application programs or software applications that work as a single program
intranet
a computer network withing an organiztion
database management
a computer program used to store data organized especially for rapid search and retrieval
spreadsheet
a computerized worksheet for entering and charting data
modem
a conversion device for digital and analog data
What kind of company would most likely hire a professional manager?
a corporation
statement of cash flows
a financial report that shows incoming and outgoing money during an accounting period (often monthly or quarterly)
Internet
a global computer network that connects many computer networks to allow information to flow freely around the world
trust
a group of companies that band together to form a monopoly
full-time job
a job that requires at least 40 hours of work each week
democratic leadership
a leadership style in which managers work with employees to make decisions
autocratic leadership
a leadership style in which one person runs everything and makes all decisions without consulting others
patent
a legal grant for the sole right to own and invention
priorities
a listing of items in order of importance
In a large company, to whom would an operational manager generally report?
a middle manager
trademark
a name, symbol, or characteristic that identifies a product
aptitude
a natural ability or talent
balance sheet
a report of the balances in all asset, liability, and owner's equity accounts at the end of an accounting period; gives a snapshot, as it essentially gives only one day of a company
income statement
a report of the revenue, expenses, and net income or net loss for an accounting period; typically over 12 months)
wearable computer
a small portable computer that is designed to be worn on the body during use
spyware
a software that tracks what a user does on the Internet
What is NOT necessary in a mentor
a specific knowledge of the mentoree's job
job objective
a statement about the type of job a job applicant wants
resume
a summary of an individual's skills education and work experience to persuade an employer to interview you
VoIP
a technology that allows users to make telephone calls using a high-speed Internet connection instead of standard telephone channels
facsimile
a technology used to send images (text, photographs, drawings) using telephone or VoIP channels
internship
a temporary paid or unpaid position that involves direct work experience in a career field
employability skills
basic skills you need to get a job, keep it, and do well at it
point-of-sale system
basically an electronic cash register that allows you to track sales
continuous improvement
being alert at all times to ways of working more productively
Behavioristic
benefit expectations.
cookies
bits of information about a computer user that are stored on the computer user's hard drive
e-commerce
business conducted electronically, as in making purchases or selling products via the World Wide Web
global marketplace
buying and selling of goods or services throughout the world
fixed assets
items of value that are held for more than one year
entry-level job
job suitable for a worker who is new to a job, field, or subject
controlling
keeping the company on track and making sure goals are met
Fortune 500 companies
largest companies listed in Fortune magazine
cover letter
letter that accompanies a resume and tells the employer about an applicant, explaining why the person is applying for a job
what three main types of authority are there?
line authority, staff authority, functional authority
Geographic
location.
Introduction
low customer awareness and acceptance; sales rise gradually; high marketing costs, low profits. Make potential customers aware of product.
top-level managers
managers responsible for setting goals, planning for the future, and leading and controlling the work of others
operational managers
managers who are responsible for the daily operations of a business
middle managers
managers who carry out the decisions of top managaement
capital
money or wealth needed to produce goods and services
ethics
moral principles by which people conduct themselves personally, socially, or professionally
code of ethics
moral standards or values and related behavior; also called code of conduct
innovation
new method or idea
mobile office
office temporarily located at a particular site or can move from place to place
management
the process of achieving company goals by planning, organizing, directing, controlling, and evaluating the effective use of resources
Which deals with non-management workers most often?
operational management
which managerial function comes first when executing business goals?
organizing
information management
organizing, maintaining, and accessing records or data
financial plan
outlines the financial projections about a new firm or venture; include the amount of money a business will need to start and operate
severance pay
payment made to an employee being dismissed from a job
Psychographic
personality.
What management task is part of the controlling function?
planning projects
hardware elements of a computer
processor, memory, input and output devices, and storage devices
software
programs and applications
assets
property or other items of value owned by a business; doesn't include insurance
RAM
random access memory that is used to hold all of the data and instructions required during operations
diversity
reflected in a workforce with people form a wide range of ethnic and cultural backgrounds
word processing
writing, editing, and producing documents through the use of a computer program
cash flow statement
shows how cash is flowing in and out of a business; used as a guide for business decisions like adding employees or planning major purchases
income or Profit and Loss Statement
shows where and how money goes in and out of a company for a period of time
microprocessor
small computer chip that acts as the brain of a computer
operating software
software that controls the operations of a computer, maintains files, runs software applications, and handles devices such as computer mice and printers.
business intelligence software
something a business owner might invest in that culls data from arious areas and delivers reports and analysis. It can be used to figure out what's driving profits and pinpoint areas that aren't running smoothly.
digital
sotred or transmitted by a process using groups of electronic bits of data
job shadowing
the act of following another worker for a few days on a job
cash flows
the amount of money that is available to a business at any given time, esp. to pay upcoming bills
virtual office
the capability to perform work activities away from a traditional office setting
copyright
the exclusive legal right given to artists to own their creations
networking
the practice of building informal relationships with people whose friendship could bring advanages such as job or business oppotunities
telecommute
the practice of working and communicating with others from a remote location
email marketing software
used to promote your business via electronic newsletters that helps you develop targeted, spam-free emails to send to your distribution lists
outsourcing
using outside sources to do tasks traditionally handled by internal staff
equity
value of a piece of property less the amount still owed on the money borrowed to purchase it; how much is actually owned
What does an organizational chart show?
who is in charge of whom in a firm
cooperative
willing to act or work with others for a common purpose