2 What is Management Flashcards
Qualities of a good manager?
- That he understands the context in which his org. exists
- That he understands the org’s unique culture
- That he gains the industry and organization-specific knowledge to get things done effectively
When would we be likely to see a sole proprietorship?
When the particular business is small
sole proprietorship: business is owned AND managed by one person in the community
Why would you want to enter into a (independent) partnership rather than sole proprietorship?
Because you’ll have more financial resources along with shared management and knowledge
Differentiate b/w general and limited partnerships
General partnerships mean that ALL partners are involved in the day-to-day management of a business
Limited partnerships have at least one general partner who’s involved in the business’ day-to-day management, but there’re also limited partners (“passive investors”) who basically inject funds into the business, and expect profits in return (their liabilities are limited to what they inject into the business, basically)
Define corporation.
Gp of inds that forms and acts as a SINGLE ENTITY w/ liability separate from its owners
Why do non-profit corporations receive special tax considerations?
Because their formations are encouraged given that they perform a valuable public service
What’s one reason a conglomerate merger would occur?
(Conglomerate merger: firms in completely unrelated
industries merge together”)
To diversify companies’ portfolios.
Why merge in general?
Cost savings
Enter new markets
Compete more efficiently
Adapt to change
Why don’t mergers sometimes work?
- Companies overpay for new company
- Cost savings were overestimated
- Managers refuse to integrate operations
- Cost-cutting post-merge hurts business and employees
I want to own a pharmacy, but I want less risk. Should I be a franchisee or an owner of my own pharmacy (independent sole proprietorship)?
Definitely be a franchisee since you’re basically borrowing the franchisor’s business model and brand, and plus you get financial advice and help, as well as help w/ management and marketing.
Profits are shared amongst members who pay a membership fee in THIS TYPE of business model.
Cooperatives
