intro mangment chapter 5 and 6
Partnership
A business in which two or more persons combine their assets and skills
Sole proprietorship
A business owned by one person
Corporation
A business owned by stockholders who share in its profits but are not personally responsible for its debts
Goals and objectives
Setting goals is often a team process, Objectives detail how to achieve goals
Managers need to be
Skilled communicator A team player A planner An organizer A leader A motivator
Foreign corporations
operate in states other than their state of incorporation
Domestic corporation
operates in the state that granted the charter
Franchise
owner, one selling Franchise
Interns
-doing lots of work for little money they are future of the company and industry
Limited partnership
1 general partnership Multiple Limited partnerships, do have to file proof or partnerships with state, 1 GP is not protected from liability, Multiple LP's are protected
General Partnerships
2 or more people % of business Written agreements No liability protection Access to money Pass through taxes
S corporation
A unique government creation that looks like a corporation but is taxed like sole proprietorships and partnerships
Benfits of home based business
Ability to start your business Minimal start up capital needed No rent or excessive set up charges Comfortable working conditions
Limited liability Partnership
All partners are limited partners and not responsible for the debts and other liabilities of other partners
Nonprofit organizations
Business organizations that provide goods and services without seeking to earn a profit.
Advantages to going global
Buyers could be different not wanting to deal with corporations Small companies can ship much faster Small companies can provide different information
Board of directors
CEO gives direction to officers
Entrepreneurial teams
Combine their creative skills with production and marketing skills from the start Ensure more cooperation and coordination among functions
functions of a manager
Controlling-measuring results against corporate objectives Monitoring performance relative to standards Rewarding outstanding performance Taking corrective ac1 when necessary
Decision making
Define the situation Describe and collect needed information Develop alternatives Decide which alternative is best Do what is indicated Determine whether the decision was a good one and follow up
Delware
Delaware has a court system that is basically a business court, Corporations go to Delaware to start to protect themselves.
Down sides of home based business
Difficult to establish work habits Limited support system Isolation Clients may be uncomfortable
Mistakes Busiesses owners make
Don't commit Hire wrong people Don't want to give up control Failed to use technology
Participative (democratic leadership)
Employees participate in decisions usually increases job satisfaction
Leaders must-communicate a vision and rally others around that vision
Establish corporate values Promote corporate ethics Embrace change Stress accountability and responsibility Transparency
Controlling
Establishing clear performance standards Monitoring and recording actual performance or results Comparing results against plans and standards Communicating results and deviations to the appropriate employees Taking corrective action when needed and providing positive feedback for work well done
Disadvantages of corporations
Expensive to start a corporation Extensive and specific paperwork Double taxation-corporation as well as shareholders are taxed Two tax returns Size Difficulty of termination Possible conflict with stockholders and board of directors
LLC
FEDERAL GOVERNMENT DOES NOT FORM LLC PARTNERSHIPS ONLY STATE CAN DO SO
steps to start a business
Find a need Write copy that sells Design an easy website to use Use search engines to traffic your site Increase income Follow with customers and subscribers
Managing knowledge
Giving employees the information they need to complete their job Rise of big date requires determining what is most important Key to success is learning how to process information effectively and turn it into knowledge
Conventional Corporation
Has stockholders Limits liability of owners Enables many people to share in ownership
Disadvantages of franchises
Large start up costs Shared profit Management regulation Coattail effects Restrictions on selling Fraudulent franchisors
functions of a manager 3
Leading-Guide and motivate employees to work effectively to accomplish organizational goals and objectives Giving assignments Explaining routines Clarifying policies Providing feedback on performance
Advantages of corporations
Limited liability Ability to raise more money for investment Size Perpetual life Ease of ownership change Ease of attracting talented employees Separation of ownership from management, decisions aren't made by owners vs managements
Advantages of Limited liability Companies
Limited liability Choice of taxation Flexible ownership rules Flexible distribution of profits Operating flexibility
Types of partnerships
Limited liability partnership-group of people Limits partners risk Limited partnership Has general partners and limited partners who have limited liability General partnership- 1-2 partners Shared ownership and limited liability
Disadvantages of home based franchises
Long hours Home all the time
Low managers
Low managerstechnical skills,human relations skills,conceptual skills
Advantages of franchising
Management and marketing assistance Personal ownership Nationally recognized name Financial advice and assistance Lower failure rate IF ITS A SUCCESSFUL FRANCESE FROM THE TOP IT WILL MOST LIKELY BE SUCCESSFUL FROM THE BOTTOM
Advantages of partnerships
More financial resources Shared management and pooled/complementary skills and knowledge Longer survival No special taxes
Advantages of Home based franchises
No commuting Extra time for family Low overhead
Disadvantages of Limited Liability companies
No stock Fewer incentives Taxes Paperwork Established by state law
Individuals can incorporate
Normally do not issue stock to other Limited liability and tax benefits
Reasons to become an entrepreneur
Opportunities Profit Independence challenge Job loss
functions of a manager 2
Organizing- allowing resources assigning tasks and establishing procedures for accomplishing goals, Preparing a structure showing lines of authority, Recruiting selecting training and developing, Placing employees where they are most affective
Functions of business
Planning your business Financing your business Knowing your customers Managing your employees Keeping records
Functions of a manager 1
Planning- understand environment that the business operates
Mission statement
Self concept Philosophy Long term survival needs Customer needs Social responsibility Nature of its products or services
What does it take to be an entrepreneur
Self directed Self nurturing Action oriented
4 areas of planning
Strategic planning-setting of broad long range goals by top management Tactical planning-identification of specific short range objectives by lower level managers Operational planning-setting of work standards and schedules Contingency planning-back up plans in case primary plans fail
Tasks and skills at different levels of management
Technical skills Human relations skills Conceptual skills
C Corporation
The most common type of corporation, which is a legal business entity that offers limited liability to all of its owners, who are called stockholders
Disadvantages of partnerships
Unlimited liability-no protection Shared profits Disagreements among partners Difficulty of termination-end business because of disagreements
Disadvantages of sole proprietorship
Unlimited liability-risk of personal losses Limited financial resources Management difficulties Overwhelming time commitment Few fringe benefits Limited growth Limited life span
3 types of merges
Vertical merger-competition coming together Horizontal merger-2 seperate companies in same industry Conglomerate merger-companies from different industries
Diversity
Women own half of all US companies but only 35% of franchise Lot of minorities are franchisors
Advantages of Sole proprietorship
You decide the rules of business Own boss Pride of ownership Leaving a legacy Retention of company profits No special taxes Dies when owner dies No liability protection Unlimited employees One person
Multinational corporation
a large business that operates in many countries
Franchise
agreement where someone has a good idea for a business and sells name and rights to use that business
Enabling workers
allows them to be able to assume responsibility and decision making
Officers
apply decisions and direction to employees
Quasi public corporations
are chartered by the government as an approved monopoly to perform services to the general public.
Cooperatives
are owned and controlled by the people who use them World wide, co-ops
Professional corporations
are owned by those who offer professional services
Public corporations
businesses that sell stock, or pieces of ownership, to the public on the stock market
Vp marketing
dept heads,domestic,overseases managers supervisor
Alien corporations
do business in the United States but are chartered (incorporated) in another country.
Autocratic leadership
effective in emergencies or with new unskilled workers who need clear direction and guidance
Progessive leaders
empower employees
PMI
gathering information and coming to a conclusion with facts
Micropreneurs
home based businessess
Lawyers
many do pro bono work even for nonprofit companies
intrapreneurs
people within an existing business
Franchisor
person selling franchise
Incubators
places where government or towns have created for a safe business
small business
small compared to other businesses in the industry
Free rein leadership
successful when supervising employees
Top managers
technical skills,human relations skills, conceptual skills
Middle managers
technical skills,human relations skills,conceptual skills
Empowering workers
telling employees what to do to meet organizational goals
Problem solving teams
two or more workers assigned to solve a problem