Buisness test #2 Flashcards
On the job training
Training that is undertaken in your place of work
Minimum Wage
Minimum Wage is the lowest amount of money that employers can legally pay their employees
Overtime Pay
Overtime is the amount of time someone works beyond working hours. Normally the employers will pay the employee more money, like time and a half
Commission
The commission is a form of variable-pay of an amount of money for products sold. You get a percentage of everything you sell
Incentive Bonus
An Incentive Bonus is an extra payment made to an employee to reward good work
Entrepreneurship
An entrepreneur is a person who starts a business to solve a particular issue or take advantage of an opportunity
Venture
A venture is a business enterprise involving some risk, in expectation of financial gain
Franchise
A business licenses another to use its name, operating procedures, suppliers, etc.
Franchisor/Franchisee
A franchisor is a party contract that specifies methods to be followed/terms to be met by the other part.
A franchisee is an entrepreneur whose power is limited by a contractual agreement with a franchising organization.
Invention
An invention is a product or process that does something that has never been done before.
When the invented product or service fills a need, it can potentially be sold to consumers.
Innovation
An innovation requires using new technology, materials, or processes to improve existing products to create new production and distribution processes.
Piggyback markets
Piggyback marketing- Two or more firms represent one another’s complementary (but non-competing) products in their respective markets.
SWOT Analysis
SWOT Analysis is a useful tool that businesses can use to understand and analyze the factors that can affect them.
Using the analysis helps business managers develop the appropriate strategies for their business.
SWOT stands for
S= Strengths
W= Weaknesses
O= Opportunities
T= Threats
What’s an Internal factor
Internal factors of a business are things you can control in a business environment.
These include staff, company culture, processes and finance.
Roles of a human resource manager
- Recruitments
- Selecting employees
- Training and developing employees
- Assessing employees preformances
Roles of a human resource manager
- Recruitments
- Selecting employees
- Training and developing employees
- Assessing employees performances
- Motivating and managing employees
- Compensating employees (pay them)
Types of Leadership styles
- Autocratic Leaders
- Democratic Leaders
- Laissez- faire leaders
Steps in the selection interview
- Introduction
- Structuring statement
- Information Gathering
- Tell and Sell
- Candidate Questions
- Close
What’s an Internal factor
Internal factors of a business are things you can control in a business environment.
These include staff, company culture, processes, and finance.
What areas are in a job want ad
- Job responsibilities
- Prioritize skills
- Experience
- Salary
- Contact person
- Sell yourself
Accessing Prospect chart (clockwise)
Idea-Resources-Skills MIDDLE=MOTIVATION
Characteristics of an entrepreneur
- Risk Taker
- Perspective
- Curious
- Imaginative
- P
Characteristics of an entrepreneur
- Risk Taker
- Perspective
- Curious
- Imaginative
- Persistent
- Goal-Setting
- Hard-Working
- Self-Confident
Contributions of small businesses and explain
- Creating meaningful local jobs
- Foster local economies
- Keep money close to home
- Support neighborhoods and communities
- One-of-a-kind products and services
- Financial success and independence
- Easier to network with other businesses
Pros and cons of a franchise
Advantages
- Good chances of success
- It’s easier to borrow money because of proven success
Disadvantages
- The franchisee can not make all of your decisions
- Cannot sell the franchise without permission
Sole Proprietorship
Sole Proprietorships are owned by one person. It’s all your decisions and responsibilities. It’s also the simplest form of business ownership. You have unlimited Liability.
Sole Proprietorships Advantages and Disadvantages
Advantages
- You keep all of the profits
- You make all of the decisions
Disadvantages
- Unlimited Liability
- Borrowing money may be difficult as the bank doesn’t want to take risks as you are a new business
Partnerships
Partnerships are owned by two or more people
Partnerships Advantages and Disadvantages
Advantages
-Inexpensive to set up and organize (1000 to get a license)
-Two people to invest so it’s easier to borrow from a
bank
Disadvantages
- Unlimited Liability
- Conflicts between partners that you may not be able to work out
Cooperatives
Cooperatives are a business legally owned by their member
Cooperatives Advantages and Disadvantages
Advantages
- Less risk than a sole proprietorship or partnership
- Shared skills and experiences
Disadvantages
- Decision making can be difficult as a result of multiple members
- The commitment of members may vary as some have more money at stake and some might take it more seriously
Franchise
A franchise is when a business licenses another to use its name, operating procedures, suppliers, etc
Franchise Advantages and Disadvantages
Advantages
- Established brand name
- Customer recognition
Disadvantages
- Cost to buy a franchise
- Cannot make a lot of decisions on your own - most are made by the franchisor
Corporation
Is an artificial ‘person’ or entity created by law and owned by shareholders.
Corporation Advantages and Disadvantages
Advantages
Owners are only liable for the amount they invest
Ownership is easily transferable
Disadvantages
More complicated and expensive to set up
Closing a corporation can be time-consuming and expensive
What not to ask during an interview
Race Colour Sex Religion National Origin Birthplace Age Disability Marital/Family status
