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Intro to business management > Unit 2 exam > Flashcards

Unit 2 exam Flashcards

1
Q

3 rules for starting a business

A

Do you have technical skills in that business?
Do you have management experience?
Do you have the financial capacity to get the start up funds required?

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2
Q

Sole proprietorships

A

One owner solely owned the business

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3
Q

Adv of sole proprietorships

A

Make important decisions
All money goes to you
Tax benefits

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4
Q

Disadvantages of sole proprietorships

A

Unlimited liability for the owner
Complete responsibility for tallest and financing
Business dissolves if owner dies

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5
Q

partnership

A

A business owned by two or more people

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6
Q

Limited partnership

A

Partnership where one person (general partner) runs the business and in turn has unlimited liability and another partner (limited partner(s) have limited involvement are are limited to their amount an investment

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7
Q

General partnership

A

runs business and is responsible for liabilities

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8
Q

Adv of partnerships

A

more resources and talents come with an increase in partner

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9
Q

Disadvantages of partnerships

A

partner disputed, unlimited liability, and shared profits

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10
Q

Corporation

A

A legal entity that’s separate from the parties who own it, the shareholders who invest by buying shares of a stock
Corporations are governed by a board of directors, elected by the shareholders

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11
Q

Advantages of a corporation

A

limited liability, easier access to financing, unlimited life for corporations

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12
Q

Disadvantages of a corporation

A

the agency problem, double taxation, and incorporation expenses and regulations

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13
Q

Mergers

A

A merger occurs when two companies combine to form a new company

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14
Q

Acquisition

A

An acquisition is the purchase of one company by another with no new company being formed

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15
Q

Why conduct M&A

A

Gain complementary products
Attain news markers
Realize synergies

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16
Q

Double tax

A

corporations are taxed on their profits and on distribution of dividends
-corperation pays first time and shareholders pay second time

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17
Q

hostile takeover

A

an act of assuming control that is resisted by the targeted company’s management and its board of directors
example: enough stockholders agree that another company should buy the company they have invested in without the owner wanting to sell it

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18
Q

Funding sources

A

Crowdfunding, angel investors, venture capital

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19
Q

Crowdfunding

A

No ownership in the business, kickstarter, gofundme, normally receives some type of token for donation

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20
Q

Angel investors

A

Provide capital to start ups in exchange for an ownership position in the company, normally entrepreneurs themselves, want to help mentor

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21
Q

Venture capital

A

Venture firms also take ownership in the company, they tend to have higher expectations of making a return on investment

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22
Q

Vision statement

A

More than a goal, a broad explanation of where the organization is trying to go

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23
Q

Mission statement

A

outlines the organization’s fundamental purposes, Why does this organization exist?

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24
Q

Swot

A

Strength, weakness, opportunities, threats

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25
Goals
Goals are major accomplishments over a long period of time
26
Objectives
Objectives are the stepping stones to get to your goal
27
Tactical plans
Shorter components of the overall plan
28
Operational plans
Short durations. 1-2 months
29
Contingency planning
Develop alternative course of action in case an anticipated change does occur Also known as a backup or fallback plan
30
Autocratic manager
Tends to make decisions without input and expects subordinates to follow instructions
31
Democratic managers
seek input into decision making
32
Free rein managers
Provide no more guidance than necessary and let subordinates make decisions and solve problems
33
Transactional style managers
Exercise authority according to their rank in the organization, let subordinates know what's expected of them and step in only when mistakes are made
34
Transformational style managers
Mentor and devolve subordinates and motivate them to achieve organizational goals
35
Production planning process
How goods will be produced Where production will take place How manufacturing facilities will be laid out
36
Product control process
Continually schedule and monitor the activities that makeup that process Must solicit and respond to feedback make adjustments when needed oversee the purchase of raw materials and inventories
37
Quality Control Process
Ensure that goods are produced according to specifications
38
Make to order
Products customized to meet the needs of the buyer Low volume, high variety goods according to customer specifications Often results in a longer production and delivery cycle than other approaches Commonly used by such businesses as print or sign shops
39
Mass production
Practicer of producing high volumes of identical products at a low cost Goods are made in anticipation of future demand Kept in inventory for later sale Shorter cycle times than a make to order process Appropriate for standardized goods
40
Mass customization
Combines the advantages of made to order with those of mass production Requires that a company interact with the customer Need to manufacture the good, using efficient production methods to hold down costs
41
Site selection factors managers must consider
Distance to suppliers and customers Located in areas with ample numbers of skilled workers Where their family will enjoy living Cost of resources and cost of living is low
42
Critical path
The sequence of activities that will entail the greatest amount of time
43
Purchasing/ procurement
Process of acquiring the materials and services to be used in production
44
Supplier Selection Process
Finding the best supplier for the product, technology, or process
45
Just in time
production, materials arrive just in time to enter the manufacturing process
46
Material requirements planning
a software tool to determine material needs, it uses sales forecasts to anticipate materials that will be needed before ordering them
47
Total quality management
Quality insurence
48
3 tasks of Total quality management
Customer satisfaction Employee involvement Continuous improvement
49
Organizational Behavior (OB)
The study and application of knowledge about how people, individuals, and groups act in organizations
50
Human Resources management (HRM)
The process of determining human resource needs and then recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals
51
Job descriptions
Lists the duties and responsibilities of a position
52
Job specifications
the qualifications, skills, knowledge, abilities needed to perform the job
53
New employee orientation
Be prepared and make the new hire feel welcome, comfortable, and prepared for work
54
Employee development
Formal and informal on the job training to enhance employee skills
55
Job rotation
formal program to assign employees within a specific time frame
56
Job enlargement
varying the tasks of an employee to reduce boredom and turnover
57
Job enrichment
Varying the tasks of an employee to invest in development
58
Wages
Paid according to the number of hourrs you work
59
Salaries
Paid for fulfilling the responsibilities of a position, regardless of hours
60
Piecework
Employees paid based on number of items produced
61
Fringe benefits
Sick leave, vacation pay, pension and health plans that provide additional compensation to employees beyond base wage
62
Agency problem
Managers put their needs ahead of the needs of the company, a conflict of interests
63
Why do small businesses fail
Lack of formal planning Insufficient market analysis Undercapitalization Insufficient organization structure Lack of formal policies and procedures
64
POLC
Planning, Organizing, Leading, Control
65
Capacity requirements
Maximum number of units that can be built in a certain amount of time
66
3 characteristics of entrepreneurship
Innovation Running a business Risk taking
67
Benchmarking
Comparison to other organizations practices and processes with the objective of learning and improving

Intro to business management (2 decks)

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