Book Notes - Chapters 4, 8, 6, 9 Flashcards Preview

Intro to Business 1 > Book Notes - Chapters 4, 8, 6, 9 > Flashcards

Flashcards in Book Notes - Chapters 4, 8, 6, 9 Deck (132)
Loading flashcards...
1
Q

(CIO) Chief Information Officer

A

Executive responsible for managing all information resources and processes in an org

2
Q

Knowledge Worker

A

Worker who develops and uses knowledge, contributing to and benefiting from information used in performing various tasks, incl: planning, acquiring, searching, analyzing, organizing, storing, programming, producing, distributing, marketing or selling functions

3
Q

Technology Transfer

A

Formal transfer of rights to use technology given to the user by the owner (usually developer)

4
Q

Intrapreneurs

A

Entrepreneurs who apply their creativity, vision and risk taking within large organizations rather than starting companies of their own

5
Q

Small Business

A

Business that is independently managed, is owned by an individual or a small group of investors, is based locally ad is not a dominant company in its industry

6
Q

Business Plan

A

Formal written statement that describes in detail the idea for a new business and how it will be carried out, and includes a general description of the company, the qualifications of the owner(s) a description of the product or service, an analysis of the market, and a financial plan

7
Q

Debt

A

Form of business financing consisting of borrowed funds that must be repaid with interest over a stated period

8
Q

Equity

A

Form of business financing consisting of funds raised through the sale of shares

9
Q

What is technology?

A

Technology is the practical application of knowledge

10
Q

What is information technology?

A

The study or use of systems (especially computers and telecommunications) for storing, retrieving, and sending information.

11
Q

What is technology planning?

A

Technology planning is a continual process to ensure that businesses are effectively and efficiently managing their Technologies

12
Q

List the steps involved in technology planning

A
1 requirements analysis
2 design
3 implementation
4 testing
5 feedback
6 evolution
13
Q

What are complementary Technologies and why are they important?

A

Complementary technology is like apps for iOS or Android, they are important because as complementary technology grows so does the supporting technology (installed base). As they all grow together they become more popular and more users tend to jump on board. The opposite can also happen, when less complimentary technology is available

14
Q

Why is the installed base important?

A

The installed base is important because if not only allows complimentary technology to be developed an integrated within the installed base but the size and number of users of the installed base will also determine the exposure amount. This can greatly affect the success rate of complementary technology and the lifespan of the installed base

15
Q

What are network effects?

A

Network effects exist when the value of a product depends on the number of users Facebook and Twitter are good examples of this. You would not be using Facebook or Twitter if your friends were also not using it.

16
Q

How can tracking day-to-day activities increase business success?

A

Tracking day-to-day activities help increase business success as businesses can adapt to changing market conditions rapidly, reducing the risk of sales loss and increasing the chance of success by tailoring the business strategy to meet the market conditions.

17
Q

Why is it important to protect our information?

A

Supporting to protect your personal information since your information can be collected, shared, and used to personally and financially harm you or your business

18
Q

What expenses are associated with technology acquisition and maintenance?

A

Technology development requires companies to continually evaluate their existing technology and determine if new technology would provide better competitive advantages.

One of the critical considerations in mergers and Acquisitions is the compatibility of different Technologies used in each company some considerations would be whether to keep the technology separate, use one of them, or combine both. Regardless of the decision it is a very expensive process in both time and money

19
Q

Why is it important that social media is current and relevant to customers?

A

Social media benefits includes increased brand recognition, increased brand loyalty, ease of switching from one retailer to another, lower marketing cost, increased numbers of consumers visiting social media sites. Social media allows small businesses with Niche markets to expand and have a global presence.

20
Q

Why has online retailing increased?

A

Retail companies are taking on intermediaries and selling directly to their customers. New technologies has allowed retailers to sell globally such as language and customer support translation tools.

21
Q

Describe several types of entrepreneurs

A

Classic Entrepreneur - Some are Micropreneurs, they start small and plan to stay small. Mainly for personal lifestyle reasons. Contrary there are also Growth-Oriented entrepreneurs, who are individuals who want their businesses to grow into huge corporations.

Multipreneurs/Serial Entrepreneurs - Thrive on the challenge of building a business and usually start a series of companies

Intrapreneurs - Employees that work for a business but enjoy the freedom to nurture their ideas, develop new products. They have a high degree of autonomy to run their own mini-companies within the larger enterprise.

22
Q

Describe the traits and skills of successful entrepreneurs.

A

Ambitious, Independent, Self-Confident, Risk Taking, Visionary, Creative, Energetic, Passionate, Committed

23
Q

What is the difference between entrepreneurs and business owners?

A

Business owners are more managers than creators.

24
Q

What are some common major factors that motive entrepreneurs to start businesses?

A

Reasons include: Financial Independence, frustration working for someone else, feeling of personal satisfaction for the work you created and developing the lifestyle you want.

25
Q

What does it mean when they say an entrepreneur should work “on a business” and not “in it”?

A

There is a bridge every entrepreneur must cross in order to grow a business beyond a certain point, a point where they must transition from “doing” to “leading.”

26
Q

Why are small businesses becoming so popular?

A

Independence and a better lifestyle, Personal satisfaction from work, Rapidly changing technology, Outsourcing, Major corporate restructurings and downsizing.

27
Q

Advantages and Disadvantages of small businesses

A

Advantages - Flexibility to adapt quickly to changing market conditions, innovation can happen faster, operate more efficiently, increased personal one-on-one customer service.

Disadvantages - Difficulty obtaining financing, limited variety of employee skill-set may impact growth, complying with regulations is expensive for smaller companies, major time commitments by the owners

28
Q

Angel investors

A

Individual investors or groups of experience investors who provide funding for start-up businesses

29
Q

What are the drawbacks of sole proprietorship?

A
Unlimited Liability
Difficulty in raising capital
Limited managerial experience
Trouble finding qualified employees
Personal time commitment
Unstable business life
Losses are the owners responsibility
30
Q

Business Development Bank of Canada BDC

A

The bank that provides small and medium-sized businesses with flexible financing, affordable consulting services, and venture capital

31
Q

Angel Investors

A

Individual investors are groups of experienced investors who provide funding for start-up businesses

32
Q

Venture capital

A

Financing obtained from investment companies that specialize in financing small, high growth companies and receive an ownership interest and a voice in management in return for their money

33
Q

Business Development Bank of Canada BDC

A

A bank that provides small and medium-sized businesses with flexible financing, affordable consulting services, and venture capital

34
Q

How can potential business owners find new business ideas?

A

Many Executives get ideas for their companies while working in the same or related industry, other sources of inspiration or personal experiences as a consumer, hobbies and personal interest, suggestions from customers, family, and friends, and college courses and other education. Reading entrepreneurship and small-business magazines along with visiting their websites regularly is an excellent way to keep up with trends.

35
Q

Why is it important to develop a business plan? What should a plan include?

A

If you require financing for your startup business you need to find Angel Investors and create an interest for them a solid business plan to show potential for solid return on their Investments is a good way to start.

Plans should include the following: cover page, table of contents, executive summary, Target customers, competitor analysis, description of company, product or service plan, marketing plan, operations and development plan, management team, critical risks, offering, exit strategy, financial plan, and finally the appendix of supporting documents.

36
Q

What financing options do new business owners have?

A

Loans, government-sponsored programs, 3F, venture capitalist, short-term loans, line of credit, and reinvesting profits or selling off shares of the company

37
Q

Summarize the risks of business ownership

A

Tech risks: is the idea possible? How long will it take, how much will it cost?

Management: can you pull off the idea? What’s your skill-set? Do you have the team to do it?

Market: are their customers that will use the product or service?

Finance: loans, government-sponsored programs, three F’s, venture capitalist, short-term loans, line of credit, and reinvesting profits or selling off shares of the company

38
Q

How is the Internet affecting small business?

A

Internet driven entrepreneurs are 25% more likely to be women and 25% more likely to be university-educated customers are more comfortable with technology technology is not only having a significant impact on traditional business but also providing new opportunities to start a business many internet users are either starting internet based businesses or buying from them. The popularity of eBay and other e-commerce sites of giving the rise to a new kind of entrepreneur, mumpreneur X corporate professionals using web driven businesses specializing in the sales of specific items.

39
Q

How did the economic crisis of 2008 and 2011 encourage some to become business entrepreneurs?

A

The crisis of 2008 and 2011 and the economic challenges that began in 2014 resulted in many people without jobs, well for the most part this was devastating for Summit provided the motivation to live their dream and start their business. Some entrepreneurs feel that small businesses offer more Financial Security than larger corporations that have the potential to lay off employees. Small businesses are in the hands of the owners while large businesses are in the hands of other people.

40
Q

Partnership

A

An association of two or more individuals who agree to operate a business together for profit

41
Q

General partnership

A

A partnership in which all Partners share in the management and profits, each can act on behalf of the company and has unlimited liability for all its business obligations

42
Q

Limited partnership

A

A partnership with one or more General Partners who have unlimited liability and one or more limited partner whose liability is limited to the amount of their investment

43
Q

General partners

A

Partners who have unlimited liability for all of the company’s business obligations and who control its operations

44
Q

Limited partners

A

Partners whose liability for the company’s business obligations is limited to the amount of their investment, helped to finance the business but do not participate in the company’s operations

45
Q

Limited liability partnership LLP

A

Partnership in which each partner is protected from responsibility for the acts of other partners and each party’s liability is limited to harm resulting from the Partys own actions

46
Q

Corporation

A

Legal entity with its own rights and responsibilities separate from its shareholders, who therefore are not personally liable for the entities actions and liabilities

47
Q

Public corporation

A

Corporation who shares are widely held and available to the General Public

48
Q

Private Corporation

A

Corporation whose number of shareholders is limited, normally restricts the transfer of shares to third parties, and shares do not trade on a recognized Stock Exchange

49
Q

Shareholders

A

The owners of a corporation who hold shares of stock, share or shares, that provide certain rights, also known as stockholders

50
Q

Board of directors

A

A group of people elected by the shareholders to handle the overall management of a corporation, such a setting major corporate goals and policies, hiring corporate officers, and overseeing the company’s operations and finances

51
Q

One-person Corporation

A

A corporation with only one person as a shareholder common and professional practices, examples such as medical doctors, accountants, or lawyers, and in trades such as plumbers and electricians

52
Q

Crown corporations

A

Companies that only the provincial and federal governments can set up

53
Q

Cooperative

A

A legal entity typically formed by people with smaller interest such as suppliers or customers to reduce costs and gain economic power, has limited liability, and unlimited lifespan, and elected board of directors, and an administrative staff, all profits distributed to the member owners in proportion to their contributions.

54
Q

Joint venture

A

Business agreement in which two or more businesses agree to pool their resources for specific project or business venture

55
Q

Franchising

A

A form of business organization based on a business Arrangement between a franchisor, which supplies the product concept, and the franchisee, which sells the goods and services of the franchisor in a certain geographic area

56
Q

Franchisor

A

Franchising Arrangement, the company that supplies the product concept to the franchisee

57
Q

Franchisee

A

Franchising arrangement to the individual or company that sells the goods or services of the franchisor in a certain geographical area

58
Q

Franchise agreements

A

Contract setting out the terms of a franchising agreement, including the rules for operating a franchise, the service provided by the franchisor, and the financial terms, under the contract, the franchisee is allowed to use the franchisor’s business name, trademark, and logo

59
Q

Merger

A

Combination of two or more companies to form a new company, which often takes a new corporate identity

60
Q

Acquisition

A

The purchase of one company by another company or by an investor group, the identity of the acquired company might be lost

61
Q

Friendly takeover

A

I take over that is supported by the management and board of directors of the targeted company

62
Q

Hostile takeover

A

I take over that goes against the wishes of the target company’s management and board of directors

63
Q

Horizontal merger or acquisition

A

Merger or acquisition involving companies at the same stage of the supply chain in the same industry, done to reduce cost, expand product offerings, or reduce competition

64
Q

Vertical mergers and acquisitions

A

Mergers or Acquisitions involving companies at different stages of the supply chain in the same industry, done to gain control over supplies of resources or to gain access to different markets

65
Q

Conglomerate merger or acquisition

A

Emerger or an acquisition involving companies in unrelated businesses done to reduce risk

66
Q

Leveraged buyout LBO

A

Corporate takeover Finance buy large amounts of borrowed money, can be done by outside investors or by a company’s own management

67
Q

What is sole proprietorship a popular form of business organization?

A
Easy and inexpensive to form
Profits all go to the owner
Direct control of the business
Relative freedom from government regulations
No special taxation
Ease of dissolution
68
Q

What are the drawbacks of sole proprietorship?

A
Unlimited Liability
Difficulty in raising capital
Limited managerial experience
Trouble finding qualified employees
Personal time commitment
Unstable business life
Losses are the owners responsibility
69
Q

How does partnership differ from a sole proprietorship?

A

While sole proprietorship relies on only 1 owner a partnership adds layers of complexity such as: Potential conflict between partners, complexity of profit sharing, difficulty exiting or dissolving a partnership

70
Q

What are the three main types of partnerships?

A

General - All parties share management and profits, all act on behalf of the company and have unlimited liability

Limited - Includes one or more general partners with unlimited liability along with one or more partners with limited liability based on their initial investment.

Limited Liability - Each partner is protected from the responsibility and acts of other partners, each parties liability is limited to harm resulting from that parties own actions.

71
Q

What are the three main advantages and disadvantages of a partnership?

A

Advantages

1) Ease of formation
2) Availability of capital
3) Diversity of skill and expertise

Also: Flexibility, No Special Taxes and Relative freedom from gov’t control

Disadvantages

1) Unlimited liability
2) Potential for conflicts between partners
3) Complexity of profit sharing

Also: Difficulty exiting or dissolving a partnership

72
Q

What is a corporation? Describe how they are formed and structured.

A

A company or group of people authorized to act as a single entity (legally a person) and recognized as such in law, who therefore are not personally liable for it’s debts.

They are formed as Shareholders who elect Directors who hire Top Management/Officers (President, Vice President, Treasurer an Secretary)

73
Q

What are the advantages and disadvantages of corporations?

A

Advantages:
Limited liability, Ease of transferring ownership, Unlimited life, Ability to attract financing, Ability to attract potential employees

Disadvantages:
Double taxation of profits, Cost and complexity of formation, More government restrictions, Losses not written off.

74
Q

What is a cooperative and what are the advantages to the membership?

A

A cooperative is a legal entity with several corporate features, such as limited liability for the membership, an unlimited lifespan, an elected board of directors and an administrative staff.

Advantages:
Helps improve the quality of life and economic opportunities by providing members with credit/financial services, energy consumer goods, affordable housing, telecommunications and other services.

75
Q

How do cooperatives differ from other forms of ownership?

A

Cooperatives primary focus is to meet the common needs of their members, whereas the primary focus of investor owned businesses is to maximize the value of the company.

One member one vote as opposed to votes per amount of shares

Profits are based on the extent to which members use the cooperative as opposed to number of shares

76
Q

What are the benefits of joint ventures?

A

Benefits are:

  • Large projects are easier to handle
  • Gain access to new markets, products and technology
77
Q

Describe franchising and the main parties to the transaction?

A

Franchising is a business organization based on an agreement between a franchisor and a franchisee. The franchisor offer a per-packaged business with proved products/services for a fee and the franchisee retains an agreed upon % of profit from net sales.

78
Q

Summarize the major advantages and disadvantages to franchising

A

Advantages:

  • Increased ability for franchisor to expand (investment $ comes from franchisee)
  • Recognized name, product and operating concept
  • Management training and assistance

Disadvantages:

  • Loss of control (less decision making ability)
  • Cost of franchising (may incl. expensive equip and facilities)
  • Restricted operating freedom (strict rules, design, inventory and supply standards)
79
Q

Different types of mergers and buyouts

A

Horizontal - Businesses same stage of supply chain

Vertical - Businesses different stage int he supply chain

Conglomerate - Companies in unrelated business

Leveraged Buyouts (LBO’s) - Corporate take-over financed by large amt of borrowed money

80
Q

Management

A

Process of guiding and directing the development, maintenance, and allocation of resources to attain organizational goals

81
Q

Efficiency

A

Using the least amount of resources to accomplish the organization’s goals

82
Q

Effectiveness

A

Ability to produce the desired results are Goods

83
Q

Leadership

A

Relationship between a leader and the followers who want real changes, resulting in outcomes that reflect their shared purposes

84
Q

Planning

A

Process of deciding what needs to be done to achieve organizational objectives, knowing what is needed to accomplish these objectives, identifying when and how it will be done, and determining by whom it should be done

85
Q

Strategic planning

A

Process of creating long-range, 1 to 5 years, broad goals for the organization and determining what resources will be needed to accomplish these goals

86
Q

Mission

A

Organizations purpose and reason for existing, its long-term goals

87
Q

Mission statement

A

Clear, concise articulation of how the company intends to achieve its Vision, how it is different from its competition and the keys to its success

88
Q

Tactical planning

A

Process of beginning to implement a strategic plan by addressing issues of coordination and allocation of resources to different parts of the organization, has a shorter time frame, less than 1 year, and more specific objectives than strategic planning

89
Q

Operational planning

A

Process of creating specific standards, methods, policies, and procedures that are used in specific functional areas of the organization, helps guide and control the implementation of tactical plans

90
Q

Contingency plans

A

Plans that identify alternative courses of action for very unusual or unforeseen situations and simply won the assumptions on which the original plan is built do not hold true

91
Q

Organizing

A

Process of coordinating and allocating a company’s resources to carry out its plans

92
Q

Top management

A

Highest level of managers, including CEOs, presidents, and vice presidents, they develop strategic plans and address long-term issues

93
Q

Middle management

A

Managers who design and Carry Out tactical plans in specific areas of the company

94
Q

Supervisory management, operational management

A

Managers who design and Carry Out operational plans for the ongoing daily activities of the company

95
Q

Leading

A

Process of directing, guiding, and motivating others towards the achievement of organizational goals

96
Q

Power

A

Ability to influence others to behave in a particular way

97
Q

Legitimate power

A

Power that is derived from an individual’s position in an organization

98
Q

Reward power

A

Power that is derived from an individual’s control over Rewards

99
Q

Coercive power

A

Power that is derived from an individual’s ability to threaten negative outcomes

100
Q

Expert power

A

Power that is derived from an individual’s extensive knowledge in one or more areas

101
Q

Referent power

A

Power that is derived from an individual’s personal Charisma and the respect or admiration the individual inspires

102
Q

Leadership style

A

The relatively consistent way in which individuals in Leadership positions attempt to influence the behavior of others

103
Q

Autocratic leaders

A

Directive leaders who prefer to make decisions and solve problems on their own with little input from subordinates

104
Q

Participative leaders

A

Leaders that share decision-making with group members and encourage discussion of issues and Alternatives, includes Democratic, consensual, and consultative styles

105
Q

Democratic leaders

A

Leaders who solicit input from all members of the group and then allow the members to make the final decision through a vote

106
Q

Consensual leaders

A

Leaders who encouraged discussion about issues and then require that all parties involved agree to the final decision

107
Q

Consultative leaders

A

Leaders who confer with subordinates before making a decision but retain the final decision-making Authority

108
Q

Free-rein leadership (laissez faire)

A

Leadership style in which the leader turns over all Authority and control to subordinates

109
Q

Empowerment

A

Process of giving employees increased autonomy and discretion to make decisions, as well as control over the resources needed to implement those decisions

110
Q

Corporate culture

A

Set of attitudes, values, and standards of behavior that distinguishes one organization from another

111
Q

Controlling

A

Process of assessing/evaluating the organization’s progress towards accomplishing its goals, includes monitoring the implementation of a plan and correcting deviations from it

112
Q

Informational roles

A

Managers activities as an information gatherer, information discriminator, or a spokesperson for the company

113
Q

Interpersonal roles

A

Managers activities as a figurehead, company leader, or liaison

114
Q

Decisional roles

A

Managers activities as an entrepreneur, a resource allocator, a conflict resolver, or a negotiator

115
Q

Programmed decisions

A

Decisions made in response to frequently occurring routine situations

116
Q

Non programmed decisions

A

Responses to infrequent, unforeseen, or a very unusual problems and opportunities where the manager does not have a precedent to follow in decision-making

117
Q

Tactical skills

A

Managers specialized areas of knowledge and expertise, as well as the ability to apply that knowledge

118
Q

Human relations skills

A

Managers interpersonal skills that are used to accomplish goals through the use of Human Resources

119
Q

Conceptual skills

A

Manager’s ability to view the organization as a whole, understand the various parts are interdependent, and assess how the organisation relates to external environment

120
Q

Global Management skills

A

Manager’s ability to operate in diverse cultural environments

121
Q

What are the four key functions of managers?

A

Planning, leading, organizing, controlling

122
Q

What is the difference between efficiency and effectiveness?

A

Efficiency is using the least possible amount of resources to get to work done = doing it right

Effectiveness is the ability to produce a desired result = doing the right thing

123
Q

How are management and Leadership connected?

A

Leadership is intricately connected to management but they are not the same thing, leadership implies a relationship between a leader and those who follow. While managers are concerned with managing the tasks, getting the job done.

124
Q

What is the purpose of planning, and what is needed to do it effectively?

A

Planning begins with the anticipation of potential problems or opportunities that the organization might encounter, managers design strategies to solve these problems and prevent future ones or take advantage of opportunities.

Effective planning requires the extensive information about the external business environment in which the company operates, as well as the internal environment

125
Q

Explain the managerial function of organizing. What is the managerial pyramid?

A

Organizing is the process of coordinating and allocating a company’s resources to carry out its plans which includes developing a structure for people, positions, departments, and activities within the company.

A managerial pyramid consists of top management, middle management, and supervisory management

126
Q

What are the five power bases?

A

Legitimate power, reward power, coercive power, expert power, and referent power

127
Q

How do leaders influence other people’s behavior?

A

Leaders influence other people’s behavior by reacting to people and situations in a particular way, this pattern of behavior is referred to as leadership style. Leadership styles can be placed on a Continuum that encompasses three distinctive Styles:

Autocratic
Participative
Free rein

128
Q

Describe the Control process.

A

The Control process involves five steps:

1) set performance standards and goals
2) measure performance
3) compare actual performance to established performance standards
4) take corrective action
5) use information gained from the process to set up future performance standards

129
Q

Why is the Control process important to the success of the organization?

A

It helps managers to determine the success of the three functions: planning, organizing, and leading. Second Control Systems direct employee Behavior towards achieving organizational goals. Third, Control Systems provide a means of coordinating employees activities and integrating resources throughout the organization

130
Q

What are the three types of managerial roles?

A

Informational roles, interpersonal roles, decisional roles

131
Q

List the four steps in the analytical and Creative decision making process

A

Problem or opportunity recognition
Incubation
Illumination / Insight
Verification and implementation

132
Q

Define the basic managerial skills

A

Technical skills, human relations skills, conceptual skills, Global Management skills