Business computer test prep Flashcards
Entrepreneurship
the process of starting, organizing, managing, and assuming the responsibility for a business. The foundation of the free market economy. Create diverse product market.
Basic Organization Structure
function, product, market, customer, location. Division of labor, structure for making decisions. Goal: Maintain efficiency in business.
Management Problems.
Span of Management - too many immediate subordinates to be effective. Job assignments unclear.
Management Structure
Functional, territorial, product and matrix
Functional Management Structure
Divides the parts of the business by what they do. Production, Acctg, marketing, etc.
Territorial structure
operations are spread out over a variety of areas each operating independently
Product structure
break along product lines(auto manufacturer)
Matrix structure
functional and product structures - both financial and production oversee a project
Management style-Exploitative/Authorative
managerial decisions are imposed on subordinates and management has greater responsibility; little communication overall on the hierarchy; Employees very dependent on jobs and exploited by management. Ex: bad factories. Ineffective
Management style-Exploitative/benevoloent
managerial assumption that management acts in the best interest of the workers; little communication overall on the hierarchy; Management patronizing and fail to take into account employees feelings. Ineffective
Consultative style
small degree of trust in employees by management; all employees feel some responsibility for the overall success of the company, there is some degree of teamwork and freedom to act on minor issues among employees. But management handles larger issues and does not trust lower level employees with important manners.
Participative-group style
most effective. Managers have trust in subordinates b/c every employee is well trained and competent. Motivation by reward not punishment.
Sole proprietorship
owned and operated by one person. Suffer from limited sources of capital, high risk. Do not have to pay income taxes on profits, only personal income.
Corporations
distance and viable entity. Ownership of a corporation is held by individuals who own shares of corporation’s stock. Individual shareholders are not responsible for the actions of the corporation-just lose initial investment. Employees cannot be prosecuted for the acts of the corporation at large. Attract solid managers, manipulate/influences govt policy to suit their ends.
Corporate governance
Stockholders elect the members of a board of directors who oversee the operations of the corporation. Real power held by management group not stockholders who cooperate with a few major stockholders to ensure they remain in power.
