Business Flashcards
What is the Hatch Act?
Applies to federal employees to restrict their involvement in political activities while employees.
Related to Federal Corrupt Practices Act and Taft Hartley Act
PACs are legal for unions or employee groups
What is the Sherman Clayton Act?
Deals with engaging in activity that ruins business competition
What is Regulation Fair Disclosure?
Concerns publicly traded companies and the disclosure of material information to all investors AT THE SAME TIME
What is the Federal Lobbying Act?
Deals with individuals that lobby elected officials (and are compensated for it) on behalf of an organization or an individual and applies only if a person is aiding in the passage or defeat of legislation.
What are Porter’s Five Forces?
- supplier power, 2. buyer power, 3. competitive rivalry, 4. threat of substitution and 5. threat of new entry
What are four methods to determine PR budgets?
- Overall money available for operations.
- Competitive necessity of the public relations function.
- Specific tasks or goals set for the public relations function.
- Excess money after expenses.
What is a proxy statement?
A proxy statement is issued to shareholders to inform them of topics to be discussed at the firm’s annual meeting of shareholders.
What is an 8K report?
It provides UNSCHEDULED disclosure of any significant problems the company may be facing, such as litigation, executive malfeasance, or other problems.
What is corporate social responsibility?
The platform to demonstrate to stakeholders that it is possible to do well and do good at the same time.
What is sustainability?
Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.
What is a borderless society?
Globalization; shattered geographic boundaries and pervasiveness of social media; communicating in borderless society requires ability to see the business and stakeholders from a global perspective, leverage technology, understand global media and be sensitive to cultural differences.
What does a balance sheet show?
Assets (the things it owns), liabilities (obligations or $$ owed) and equity (what’s left over); a snapshot in time
What is the difference between non-profit and not-for-profit business?
Nonprofit exists for a specific charitable purpose, tax-exempt; can accept donations;
Not-for-profit can exist to benefit the interests of its members - no profits distributed or donations (Example: churches, NGO)
Basic Forms of Business
Sole proprietorship
Partnerships
a. General and b. Limited Liability
Corporations
a. S Corp and b. C Corp
Vertical Business Structure
Top down; centralized; control all parts of supply chain
Can create distance from the market and its needs
Horizontal Business Structure
Decentralized decision making distributes decision making across organizational units
Flexible
Responsive
Focus on accountability and ownership
Line functions vs. staff functions
Profit and product producing functions (LINE) vs. HR, PR and Finance and Legal (STAFF)
What is Sarbanes-Oxley Act?
Expands range and depth of financial statements and
other disclosure requirements of many publicly held
companies and substantially shortens the period for
making certain SEC filings.
What is the Federal Corrupt Practices Act of 1925?
Prevent organizations including UNIONS from contributing to any political campaign or candidate and prohibit any candidate from accepting such contributions.
Defining Business Literacy
Understanding exactly how various organizations make money and what differentiates an org from its compeptition; knowing the legal, political and regulatory environment
SEC Filings: 10K
Annual report
SEC Filings: 10Q
Quarterly report
SEC: Rule 5c
Gag period - An embargo of material information. No comments or written statements on future sales or earnings projections can be given during the gag period.
Blackout is not the same.
SEC Act of 1934
Mandates disclosure
SEC Rule 10 b-5
Fraud in disclosure
1963 SEC Study
Insider trading, material information violations
Section 14 of SEC 1934
Solicitation of proxies; must be filed with the SEC
SEC Form 8K
Provides current information for informed buying decisions
Quiet period
Interval between when a company registers a public offering of securities and the team the SEC declares the registration effective.
What is an income statement?
Shows the profitability of a business over a specific time; aka a profit and loss statement
What is statement of cash flow?
Shows cash in and cash out
