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This 6 page Class Notes was uploaded by Berta Von on Wednesday September 23, 2015. The Class Notes belongs to BUSN111 at Drexel University taught by EricRios in Fall. Since its upload, it has received 33 views. For similar materials see /class/212354/busn111-drexel-university in General Business at Drexel University.
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Date Created: 09/23/15
FOUNDATIONS OF BUSINESS 7 FINAL REVIEW 1 Know what the most common form of business ownership is sole proprietorship 2 2 important considerations for starting a business a Taxes b Liability 3 Know the 3 key elements of a general partnership as according to uniform partnership act common ownership shared pro ts and losses and the right to participate in managining the operations of the business Be able to provide a reason why partnerships spell out the partnership statementagreement a Written will reduce 39 J I and I Know difference between general and limited partnership general partnerships are owned by owners partners who have unlimited liability and are active in managing the company Limited partnerships are owned by owners partners who have limited liability and are not active in the company 6 If you re going to put an agreement together as business partners who else should be reviewing the document a A lawyer 7 When someone decides to become a corporation they receive their charter from who What former government a Most of them get it from the state government 8 Know the advantages of a corporation form of business the advantages include more money for investment limited liability size perpetual life ease of ownership change ease of drawing talented employees and enaratirm of ownership from t 9 Know the functions of a corporation and why it eXists 4 kJI 10 Know what a franchise is and what a franchise agreement is franchise an arrangement to buy the rights to use the business name and sell its products or services in a given territory is called a franchise franchise quot an a whereby nmenne with a good idea for a business franchisor sells the rights to use the business name and sell a product or service franchise to other franchisees in a given territory a Why would someone want to buy a franchise Because it is already established 11 Understand the franchise agreement more than 900000 franchised businesses operate in the US employing approximately 10 million people a It is good to buy a franchise because you re buying an already established product and brand name 12 Can managers effect motivation in employees a YES THEY CAN 13 The Hawthome studies revealed concluded that employees respond more to being watched than lighting temp or anything else IT WASN T ABOUT LIGHTING IT WAS ABOUT BEING WATCHED AND PEOPLE CARING l4 Maslow 7 physiological needs concerned with higher order needs 7 need to satisfy one before you can satisfy another Psychologist Abraham Maslow believed that to understand motivation at work we must understand human motivation in general It seemed to him that motivation arises from need That is people are motivated to satisfy unmet needs Needs that have already been satisfied no longer provide motivation psychological needs basic survival needs such as the need for food water and shelter safety needs the need to feel secure at work and at home social needs the need to feel loved accepted and part of the group esteem needs the need for recognition and acknowledgment from others as well as a self respect and a sense of status or importance self actualization needs the need to develop to ones fullest potential 15 In mgmt a theog called expectancy theory is about one performing if they will get something back In essence it says employees will not achieve if the result isn t sufficient 16 The equity theory says I will do my share fair of work if everyone else is doing their fair share of work 17 What s the ultimate resource of any firm a Employeespeople 18 Know that human resources today is not the same as the past It is something all managers take part in now 19 What s the diff between job description and job specification job description specifies the objectives of the job the type of work the re quot quotquot39 and duties working conditions and the iob s relation bin to other functions job specification is a written summary of the minimal education and skills to do a particular j ob in short job descriptions are about the job and job specifications are about the person who does the job 20 Know definition forjob analysis iob analysis a study ofwhat employees do who hold various iob titles It is necessary in order to recruit and train employees with the necessary skills to the iob The results of iob analysis are 2 written t iob description and iob specifications a Know definitions for 19 20 well 21 I want to evaluate the performance of employees while they are working I will use performance appraisal a It s an evaluation system used to judge employees performance against the standard of the organization 22 US rms have become a world class competitor because they focus on Quality 23 Know what productions process requires a Input b Controls c Outputs 24 Know the concepts of operation management and know the term well It focuses not only on production but on goods and services as well operation a ner iali Pd area in that converts or transforms re nnrr e into goods or39 it includes39 inventory quality control nmdm tinn 39 J quot follow up services in an automobile plant operation transforms raw materials human resources parts supplies paints tools and other resources into automobiles 25 In the service side it s all about a good experience 26 Know how a company becomes lean a You focus on the ability to make high quality goods while reducing cost or the need for more resources 27 Know what iso 9000 and iso 14000 are iso 9000 the common name given to quality management and assurance standards iso 14000 a collection of the best practices for managing an organization s impact on the environment certification of in both shows that a firm has a world class management system in both quality and environmental standards a International standards organization b Ritz Carlton has this c All about reducing service failures and product defects 28 Know definition of ethics J J of moral behavior that is behavior accepted by society as right ethics versus wrong a It covers more than just legal behavior 29 scenario question There is an act to help whistleblowers a Servings OXley act 7 keeps people responsible to provide employee info without getting into trouble b According to servings OXley act everyone is in trouble not just employee includes ceo cfo managers 30 Understand the terms importing and eXporting importing buying products from another countpy eXporting selling products to another county 31 US imports the most 32 China eXports the most 33 Understand the concept of free trade free trade the movement of goods and services among nations without political or economic barriers global trade enables a nation to produce what it is most capable of producing and buy what it needs from others in a mutually bene cial eXhange relationship and this happens through free trade 34 Know NAFTA MERCOSUR CAFTA NAFTA north American free trade agreement created a free trade are among the US Canada and meXico ratif1ed in 1994 CAFTA central American free trade agreement created a free trade zone with costa rica el Salvador C t Hnndnra and 39 passed in 2005 MERCOSUR unites Brazil Argentina Paraguay Urugay and associate members Chile and Bolivia into a trading bloc its economic goals also include a single currency among member nations 35 Know the difference between strategic tactical and operation plans t 39 39 done by top and determines the maior goals ofthe oroam39 atinn and the policies procedure t 39 and re mm e it will need to achieve them At this stage top managers decided which customers to serve when to serve them what products or services to sell and the geographic areas in which to compete tactical the process of developed detailed short term t t about what is to be done who is to do it and how ie 7 annual budgets mneratinnal39 the process of setting work J J and 39 J 39 necessary to 39 t the company s tactical obiectives 36 Know what a mission statement is an outline of the f J t 39 purposes of an organization 37 Know the different theories theory X and theory y a Theory X of management says when boss isn t around people won t do job b Theory y says people are good they ll do job even if boss isn t around 38 Know diff between sole proprietorship partnership and corporation function a Know how they function b Know the advantagesdisadvantages a sole proprietorship a business owned and usually managed by one person advantages ease of starting and ending the business being your own boss pride of ownership leaving a legacy retention of company prof1t no special taxes disadvantages unlimited liability any debts or damages incurred by the business are your debts even if it means selling your home car or anything else limited financial resources management diff1culties overwhelming time commitment few fringe benefits limited growth limited life span partnership 2 or more people legally agree to become co owners of a business advantages more financial resources shared management and pooled skills knowledge longer survival no special taxes disadvantages unlimited liability division of profits difficult to terminate disagreement among partners corporation a legal entity with authority to act and have liability apart from its owners advantages limited liability size perpetual life ease of ownership change ease of attracting talented employees separation of ownership from management ability to raise money for investment disadvantages initial cost extensive paperwork double taxation 2 tax returns size difficulty of termination possible con icts with stockholders and board of directors 39 Understand the advantages of each from 38 for a new business that is starting up ADDITIONAL Joint venture exists to split liabilities not assuming all the risk by one s self Cultural differences can get in the way of doing business CAFTA Central American Free Trade Agreement Nicaragua Costa Rica Embargo 7 restricting trade with other countries lWhy are Mexico and Canada America s biggest trade partners Answer NAFTA North American Free Trade Agreement Other trading associations APEC Asian Pacific An agreement amongst Asian countries to trade freely 2 MERCOSUR 7 are the South American trade markets Chile Venezuela Columbia Brazil Tariff is a tax imposed on an import this done to restrict trade Licensing 7 having the permission to build or sell something Examples 7 franchising
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