Larry Jarrell BUSN 110-001, 5-8 Flashcards
define communication:
the transmission of information between a sender and receiver.
define intercultural communication:
communication among people with differing cultural backgrounds
define nonverbal communication:
communication that does not use words; hand gestures, posture, facial expression, tone of voice, eye contact…
define active listening:
attentive listening that occurs when the listener focuses his or her complete attention on the speaker
Tips for better listening: 5 things
try to figure out why it matters, take a few notes, listen with your ears and pay attention with your eyes, use nonverbal communication, use verbal feedback
define communication channels:
the various ways in which a message can be sent, ranging from one-on-one in-person meetings to internet message boards.
Biases to avoid in communication: 2 things
slang, bias (gender, age, race, ethnicity, and nationality)
define active voice:
subject performs the action expressed by the verb
define passive voice:
subject does not do the action expressed by the verb, rather the subject is acted upon
Parts of Verbal presentations: 7 things
questions, visual aids, google presentations, handling nerves and hostility, humor incorporation, eye contact
Keys to dynamic delivery: 10 things
- practice
- know the material
- eye contact
- change your tone in voice facial expressions and body language
- use selective notes
- have a time frame
- slow down and really listen to yourself
- do not apologize
- use natural gestures
- PRACTICE
Four major choices of ownership:
- sole proprietorship
- general partnership
- corporation
- and limited liability company (LLC)
Advantages and disadvantages of sole proprietorship: 5 advantages and 5 disadvantages
Advantages- ease of formation, retention of control, pride of ownership, retention of profits, and possible tax advantages
Disadvantages- limited financial resources, unlimited liability, limited ability to attract and maintain talented employees, heavy workload and responsibilities, and lack of permanence.
Advantages and disadvantages of general partnership: 4 advantages and 4 disadvantages
Advantages- ability to pool financial resources, ability to share responsibilities and capitalize on complementary skills, ease of formation, and possible tax advantages.
Disadvantages- unlimited liability, potential for disagreements, lack of continuity, and difficulty in withdrawing from a partnership.
Advantages and disadvantages of C corporation: 5 advantages and 4 disadvantages
Advantages- limited liability, permanence, ease of transfer of ownership, ability to raise large amounts of financial capital, and ability to make use of specialized management.
Disadvantages- expense and complexity of formation and operation, complications when operating in more than one state, double taxation of earnings and additional taxes, and more paperwork, more regulation, and less secrecy
Advantages and disadvantages of limited liability company (LLC): 4 advantages and 5 disadvantages
Advantages- limited liability, tax pass-through, simplicity and flexibility in management and operations, and flexible ownerships.
Disadvantages- complexity of formation, annual franchise tax, foreign status in other states, limits on types of firms that can form LLCs, and differences in state laws
define franchisor:
an individual or company that sells or grants a franchise for the sale of goods or the operation of a service.
define franchisee:
an individual or company that holds a franchise for the sale of goods or the operation of a service.
Pros/cons of franchises: 4 pros and 6 cons
Pros- less risk, training and support, brand recognition, and easier access to funding.
Cons- costs, lack of control, negative halo effect, growth challenges, restrictions on sale, and poor execution
define franchise disclosure document:
a detailed description of all aspects of a franchise that the franchisor must provide to the franchisee at least 14 calendar days before the franchise agreement is signed.
define acquisition:
a corporate restructuring in which one firm buys another .
define merger:
a corporate restructuring that occurs when two formerly independent business entities combine to form a new organization.
Types of mergers: 3 types
horizontal, vertical, and conglomerate merger
define horizontal merger:
a combination of two firms that are in the same industry.
define vertical merger:
a combination of firms at different stages in the production of a good or service.
define conglomerate merger:
a combination of two firms that are in unrelated industries
define divestiture:
the transfer of total or partial ownership of some of a firm’s operations to investors or to another company
Characteristics of entrepreneurs: 6 characteristics
vision, energy, tolerance of uncertainty, self-reliance, confidence, and tolerance of failure.
define market niches:
a small segment of a market with fewer competitors than the market as a whole; attractive to small firms
Reasons motivating entrepreneurs: 4 reasons
independence, flexibility, challenge, and survival
Factors motivating angel investors: 4 factors
knowledge, network, fun, and money
______ can be difficult for small entrepreneurs just starting out
Financing
Lack of business knowledge and expertise is often a _______ for small business
major hindrance
Nonprofit organizations/tax benefits for donors:
you can deduct up to 60% of your adjusted gross income via charitable donations
Forbes magazine lists 400 richest people in U.S.A: who are they?
mainly entrepreneurs
Ethics in accounting:
related requirements have been added by many accounting boards due to accounting scandals
Stakeholders of a business company: 6 stakeholders
managers, stockholders, employees, creditors, suppliers, and government agencies
Three main financial statements:
balance sheet, income statement, and cash flow statement
Types of accountants: 3 types
public, management, and government are the three types of accountants
The accounting equation:
assets = liabilities + owner’s equity
define independent auditor’s report:
an official opinion issued by an external or internal auditor as to the quality and accuracy of the financial statements prepared by a company.
define budgeting:
management tool that shows how a firm will acquire and allocate the resources needed to achieve its goals over a specific time period.
define horizontal analysis:
analysis of financial statements that compares account values reported on these statements over two or more years to identify changes and trends
define comparative statements:
a document used to compare a particular financial statement with prior period statements.
Types of costs: 7 types
variable, fixed, implicit, out-of-pocket, direct, indirect, and activity-based
Types of budgets used in a business: 3 types
operating, financial, and master budgets
define balance sheet:
a financial statement that reports the financial position of a firm by identifying and reporting the value of the firm’s assets, liabilities, and owners’ equity
define income statement:
reports revenues, expenses, and net income that resulted from a firm’s operations over an accounting period.
define cash flow statement:
identifies the amount of cash that flowed into and out of a firm through the following activities– cash flows from operating, investing, and financing activities.
define variable cost:
costs that vary directly with the level of production
define fixed cost:
costs that remain the same when the level of production changes within some relevant range
define implicit cost:
the opportunity cost that arises when a firm uses owner-supplied resources
define out-of-pocket cost:
a cost that involves the payment of money or other resources
define direct cost:
costs that are incurred directly as the result of some specific cost object
define indirect cost:
costs that are the result of a firm’s general operations and are not directly tied to any specific cost object
Activity-based cost:
a technique to assign product costs based on links between activities that drive costs and the production of specific products
