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
