Chapitre 2 Flashcards
What is a LLC?
Limited Liability Company: is a hybrid legal entity that had the characteristics both of a corporation and a partnership.
What are the 3 different structures in business ?
Sole proprietorship
Partnership
Corporation
What is a sole proprietorship?
Most common business structure, run by one owner with no distinction between the firm and the owner.
Advantages: Not expensive, all profits goes directly to the owner
Disadvantages: have unlimited liability, difficulty to raise capital
What is a partnership?
defined as the association of two or more individuals, who forms an agreement to operate a business together and split the profits and liability
Advantage: not overly complex, they are flexible, , relatively free from the government
Disadvantages: Possibility of partnership conflicts, profit must be shared, might be difficult to dissolve
What is a corporate?
Is a legal entity that is subject to the national and local laws where the corporation was formed. They differ in size from large MNE, with thousands of employees and billions of dollars in sales. They have the power to own a property, Sue/be sued, engage in commercial operations set in terms of its charter
Advantages: liability is limited, share are transferable, life is unlimited, they are tax deductible.
Disadvantages: Profits are doubly taxed, business formation is costly and complex, regulation are stricter
What is the basic economic system of the world?
Capitalism, Communism, Socialism, and mixed economy.
What is the capitalism ?
Capitalism is a system where businesses are privately owned, focused on profit, and shaped by supply, demand, and competition.
`What is the communism?
Is a system where property is publicly owned, and goods are shared based on need, aiming for equality and no social classes
What is the socialism?
Is a system where key industries are owned or regulated by the community or government, aiming to reduce inequality and provide for everyone’s needs.
What is the macroeconomic?
Is the economic study of the marketplace ant it uses aggregate data for large groups of people, businesses, compagnies and products
What is the microeconomic ?
Is the economic study of households and firms.
What is the end role of a manager?
Organising
What are the three activities of organising ?
Division of labor (dividing up tasks)
Departmentalization (grouping jobs and employees)
Delegation (assigning roles and responsibilities)
What is the management hierarchy ?
1/Executive management: corporate objectives, environmental scanning
2/ Middle management: executive management reporting, lead front-line management, operational development, and ressource allocation
3/Front line: middle management reporting, employee supervision, and activity coordination
What leadership means?
Is the process of motivating and guiding other team members to achieve corporate goals, leader can be anyone the position doesn’t matter.
What are the five types of power?
Legitime power
Reward power
Coercive power
Expert power
Referent power
What are the different styles of leadership?
Autocratic: direct approach, allowing for little input or advice
Participative: share decision making
Free rein: All responsibility and authority are turn over to the group.
What are the differences between production and service firms?
1/ Output tangibility
2/ Product demand
3/ Production specificity
4/ Labor and automation
5/ Location
What is OECD?
Organization for economic Cooperation and development, organisation forum, consist of 36 members states and 70 non-members states.
What are the 4 categories of organizational structures ?
Micro enterprise: 10 employee or less
Small enterprise: 10-49 employees
Medium enterprises: 50-249 employees
Large enterprises: 250 employees or more
