Larry Jarrell BUSN 110-001, 5-8

Question 1

define communication:

Answer 1

the transmission of information between a sender and receiver.

Question 2

define intercultural communication:

Answer 2

communication among people with differing cultural backgrounds

Question 3

define nonverbal communication:

Answer 3

communication that does not use words; hand gestures, posture, facial expression, tone of voice, eye contact…

Question 4

define active listening:

Answer 4

attentive listening that occurs when the listener focuses his or her complete attention on the speaker

Question 5

Tips for better listening: 5 things

Answer 5

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

Question 6

define communication channels:

Answer 6

the various ways in which a message can be sent, ranging from one-on-one in-person meetings to internet message boards.

Question 7

Biases to avoid in communication: 2 things

Answer 7

slang, bias (gender, age, race, ethnicity, and nationality)

Question 8

define active voice:

Answer 8

subject performs the action expressed by the verb

Question 9

define passive voice:

Answer 9

subject does not do the action expressed by the verb, rather the subject is acted upon

Question 10

Parts of Verbal presentations: 7 things

Answer 10

questions, visual aids, google presentations, handling nerves and hostility, humor incorporation, eye contact

Question 11

Keys to dynamic delivery: 10 things

Answer 11

1. practice
2. know the material
3. eye contact
4. change your tone in voice facial expressions and body language
5. use selective notes
6. have a time frame
7. slow down and really listen to yourself
8. do not apologize
9. use natural gestures
10. PRACTICE

Question 12

Four major choices of ownership:

Answer 12

1. sole proprietorship
2. general partnership
3. corporation
4. and limited liability company (LLC)

Question 13

Advantages and disadvantages of sole proprietorship: 5 advantages and 5 disadvantages

Answer 13

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.

Question 14

Advantages and disadvantages of general partnership: 4 advantages and 4 disadvantages

Answer 14

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.

Question 15

Advantages and disadvantages of C corporation: 5 advantages and 4 disadvantages

Answer 15

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

Question 16

Advantages and disadvantages of limited liability company (LLC): 4 advantages and 5 disadvantages

Answer 16

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

Question 17

define franchisor:

Answer 17

an individual or company that sells or grants a franchise for the sale of goods or the operation of a service.

Question 18

define franchisee:

Answer 18

an individual or company that holds a franchise for the sale of goods or the operation of a service.

Question 19

Pros/cons of franchises: 4 pros and 6 cons

Answer 19

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

Question 20

define franchise disclosure document:

Answer 20

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.

Question 21

define acquisition:

Answer 21

a corporate restructuring in which one firm buys another .

Question 22

define merger:

Answer 22

a corporate restructuring that occurs when two formerly independent business entities combine to form a new organization.

Question 23

Types of mergers: 3 types

Answer 23

horizontal, vertical, and conglomerate merger

Question 24

define horizontal merger:

Answer 24

a combination of two firms that are in the same industry.

Question 25

define vertical merger:

Answer 25

a combination of firms at different stages in the production of a good or service.

Question 26

define conglomerate merger:

Answer 26

a combination of two firms that are in unrelated industries

Question 27

define divestiture:

Answer 27

the transfer of total or partial ownership of some of a firm’s operations to investors or to another company

Question 28

Characteristics of entrepreneurs: 6 characteristics

Answer 28

vision, energy, tolerance of uncertainty, self-reliance, confidence, and tolerance of failure.

Question 29

define market niches:

Answer 29

a small segment of a market with fewer competitors than the market as a whole; attractive to small firms

Question 30

Reasons motivating entrepreneurs: 4 reasons

Answer 30

independence, flexibility, challenge, and survival

Question 31

Factors motivating angel investors: 4 factors

Answer 31

knowledge, network, fun, and money

Question 32

______ can be difficult for small entrepreneurs just starting out

Answer 32

Financing

Question 33

Lack of business knowledge and expertise is often a _______ for small business

Answer 33

major hindrance

Question 34

Nonprofit organizations/tax benefits for donors:

Answer 34

you can deduct up to 60% of your adjusted gross income via charitable donations

Question 35

Forbes magazine lists 400 richest people in U.S.A: who are they?

Answer 35

mainly entrepreneurs

Question 36

Ethics in accounting:

Answer 36

related requirements have been added by many accounting boards due to accounting scandals

Question 37

Stakeholders of a business company: 6 stakeholders

Answer 37

managers, stockholders, employees, creditors, suppliers, and government agencies

Question 38

Three main financial statements:

Answer 38

balance sheet, income statement, and cash flow statement

Question 39

Types of accountants: 3 types

Answer 39

public, management, and government are the three types of accountants

Question 40

The accounting equation:

Answer 40

assets = liabilities + owner’s equity

Question 41

define independent auditor’s report:

Answer 41

an official opinion issued by an external or internal auditor as to the quality and accuracy of the financial statements prepared by a company.

Question 42

define budgeting:

Answer 42

management tool that shows how a firm will acquire and allocate the resources needed to achieve its goals over a specific time period.

Question 43

define horizontal analysis:

Answer 43

analysis of financial statements that compares account values reported on these statements over two or more years to identify changes and trends

Question 44

define comparative statements:

Answer 44

a document used to compare a particular financial statement with prior period statements.

Question 45

Types of costs: 7 types

Answer 45

variable, fixed, implicit, out-of-pocket, direct, indirect, and activity-based

Question 46

Types of budgets used in a business: 3 types

Answer 46

operating, financial, and master budgets

Question 47

define balance sheet:

Answer 47

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

Question 48

define income statement:

Answer 48

reports revenues, expenses, and net income that resulted from a firm’s operations over an accounting period.

Question 49

define cash flow statement:

Answer 49

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.

Question 50

define variable cost:

Answer 50

costs that vary directly with the level of production

Question 51

define fixed cost:

Answer 51

costs that remain the same when the level of production changes within some relevant range

Question 52

define implicit cost:

Answer 52

the opportunity cost that arises when a firm uses owner-supplied resources

Question 53

define out-of-pocket cost:

Answer 53

a cost that involves the payment of money or other resources

Question 54

define direct cost:

Answer 54

costs that are incurred directly as the result of some specific cost object

Question 55

define indirect cost:

Answer 55

costs that are the result of a firm’s general operations and are not directly tied to any specific cost object

Question 56

Activity-based cost:

Answer 56

a technique to assign product costs based on links between activities that drive costs and the production of specific products