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WORLD OF BUSINESS > exam #3 > Flashcards

exam #3 Flashcards

(100 cards)

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1
Q

motivation

A

The combination of forces that move individuals to take certain actions and avoid other actions

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2
Q

engagement

A

An employee’s rational and emotional commitment to his or her work

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3
Q

scientific management

A

A management approach designed to improve employees’ efficiency by scientifically studying their work

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4
Q

the Hawthorne effect

A

employees change their behavior because they are being studied and given special treatment

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5
Q

Maslow’s hierarchy of needs

A

self-actualization needs, esteem needs, social needs, safety needs, physiological needs

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6
Q

theory X

A

employees are irresponsible, unambitious, and dislike work, and that managers must use force, control, or threats to motivate them

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7
Q

theory Y

A

employees enjoy meaningful work, are naturally committed to certain goals, are capable of creativity, and seek out responsibility under the right condition

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8
Q

Herzberg’s two factors

A

A model that divides motivational forces into satisfiers (“motivators”) and dissatisfiers (“hygiene factors”)

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9
Q

expectancy theory

A

employees put into their work depends on expectations about their own ability to perform, expectations about likely rewards, and the attractiveness of those rewards

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10
Q

equity theory

A

The idea that employees base their level of satisfaction on the ratio of their inputs to the job and the outputs or rewards they receive from it

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11
Q

management by objectives(MBO)

A

managers and employees work together to structure personal goals and objectives for every individual, department, and project to mesh with the organization’s goals

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12
Q

system

A

An interconnected and coordinated set of elements and processes that convert inputs to desired outputs

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13
Q

supply chain

A

A set of connected systems that coordinates the flow of goods and materials from suppliers all the way through to final customers

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14
Q

supply chain management

A

The business procedures, policies, and computer systems that integrate the various elements of the supply chain into a cohesive system

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15
Q

production and operations management

A

Overseeing all the activities involved in producing goods and services

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16
Q

capacity planning

A

Establishing the overall level of resources needed to meet

customer demand

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17
Q

what is the importance of capacity planning in Mike’s bikes?

A
  • determines the ability to meet future demand
  • initial cost of capacity
  • relationship between capacity and operating costs
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18
Q

what does SCUs stand for?

A

standard capacity units

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19
Q

How many SCUs does a road bike take up?

A

1.0 SCU

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20
Q

How many SCUs does a mountain bike take up?

A

.5 SCU

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21
Q

How many SCUs does a youth bike take up?

A

.25 SCU

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22
Q

total/theoretical capacity

A

the maximum output per unit of time the process can achieve for a short period of time under ideal operating conditions

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23
Q

effective capacity

A

the actual output per unit of time that the organization can
reasonably be expected to sustain in the long run under normal operating conditions

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24
Q

actual output

A

what is actually produced(% of total capacity)

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25
the formula for capacity requirements?
capacity requirements = (forecasted sales x required SCUs) / production efficiency
26
what are the two options to deal with not enough capacity?
improve efficiency or increase the size of the factory
27
what is the best option for dealing with having not enough capacity?
improving the size of the factory, because it is less expensive on a large scale
28
productivity
The efficiency with which an organization can convert inputs to outputs
29
lean systems
Systems that maximize productivity by reducing waste and delays
30
just-in-time inventory system
goods and materials are delivered throughout the production process right before they are needed
31
efficiency expenditures
money spent on reducing wastage during production
32
mass production
the creation of identical goods or services, usually in large quantities
33
customized production
The creation of a unique good or service for each customer
34
quality
The degree to which a product or process meets reasonable or agreed-upon expectations
35
quality control
Measuring quality against established standards after the good or service has been produced and weeding out any defective products
36
how is quality gauged?
by customer satisfaction
37
what are the two sources of external financing?
debt and equity
38
what is debt?
financing provided by lenders/creditors(banks or long tern loans/bonds)
39
what is equity?
financing provided by shareholders/stockholders(preferred stockholders or common stockholders)
40
details of debt
- No voting rights - Obligatory payment(coupon interest) - Fixed life/maturity(must be repaid) - Interest is a tax-deductible expense
41
details of equity
- Voting rights(elect board of directors), - Discretionary payments(dividends), - Permanent capital(principal never repaid), - Dividends are not tax-deductible(paid with after-tax income)
42
private equity
Ownership assets that aren’t publicly traded; includes venture capital
43
public equity
Common stock that is publicly traded after a public offering through an “initial public offering”(IPO)
44
underwriter
A specialized type of bank that buys the shares from the company preparing an IPO and sells them to investors
45
prospectus
An SEC-required document that discloses required information about the company, its finances, and its plans for using the money it hopes to raise
46
The Shareholders’ Equity section of a firm’s Balance Sheet typically contains 2 elements...
share capital(preferred stock/common stock) and retained earnings
47
retained earnings
consists of the firm’s cumulative net income minus any dividends paid out(i.e., that portion of the firm’s earnings that are reinvested/retained).
48
what does it mean when we say that C|S holders have a residual claim on income?
they receive dividends after creditors, taxes, and preferred stockholders have been paid, and then only at the discretion of the firm’s directors
49
what does it mean when we say that C|S holders have a residual claim on assets?
in liquidation, C|S holder get the last claim on the firm's assets
50
price/earnings ratio
The market value per share divided by the earnings per share
51
stock split
The act of dividing a share into two or more new shares and reducing the market value by the same ratio
52
what happens when a company issues stock?
- provides an inflow of cash - less financial obligations than issuing debt - unlike debt, stock never has to be repaid - dilutes ownership interest of existing shareholders
53
what happens when a company repurchases shares?
Concentrates ownership interest among remaining shareholders
54
dividends
payments to stockholders from a corporation’s after-tax profits
55
debt to equity ratio
total liabilities / book value of equity
56
earnings per share
net income / # of shares outstanding
57
dividend yield ratio
dividends per share / market price of stock per share
58
net income formula
total sales - expenses
59
financial management
Planning for a firm’s money needs and managing the allocation and spending of funds
60
risk / return trade-off
The balance of potential risks against potential rewards
61
what are the key activities of the financial manager?
- Financial planning(budgeting) - Investments(spending money) - Financing(raising money)
62
what is the goal of the financial manager?
maximize shareholder value
63
debt financing
Arranging funding by borrowing money
64
equity financing
Arranging funding by selling ownership shares in the company, publicly or privately
65
short-term financing
Financing used to cover current expenses (generally repaid within a year)
66
long-term financing
Financing used to cover long-term expenses such as assets (generally repaid over a period of more than one year)
67
leverage
The technique of increasing the rate of return on an investment by financing it with borrowed funds
68
capital structure
A firm’s mix of debt and equity financing
69
what are bonds?
a form of long-term debt; they are interest-bearing certificates of debt
70
how do bonds payments work?
The borrower agrees to pay interest(the coupon interest payments) at a specified rate of interest, then at the end of the bonds life(maturity) the borrower has to pay back the principal(par value)
71
Coupon interest rate
the percentage of the par value that will be paid out annually in the form of interest
72
par value(principle/face value)
the amount that is returned to the bondholder at the time of maturity
73
maturity
the length of time until the bond issuer(i.e., the firm) returns the par value to the bondholder
74
bond indenture
the contract between a firm and its bondholders
75
ethics
The rules or standards governing the conduct of a person or group
76
transparency
The degree to which affected parties can observe relevant aspects of transactions or decisions
77
insider trading
The use of unpublicized information that an individual gains from the course of his or her job to benefit from fluctuations in the stock market
78
code of ethics
A written statement that sets forth the principles that guide an organization’s decision
79
whistle-blowing
The disclosure of information by a company insider that exposes illegal or unethical behavior by others within the organization
80
ethical lapse
A situation in which an individual or a group makes a decision that is morally wrong, illegal, or unethical
81
ethical dilemma
A situation in which more than one side of an issue can be supported with valid arguments
82
conflict of interest
A situation in which competing loyalties can lead to ethical lapses, such as when a business decision may be influenced by the potential for personal gain
83
corporate social responsibility
The idea that business has obligations to society beyond the pursuit of profits
84
discrimination
denial of opportunities to individuals on the basis of some characteristic that has no bearing on their ability to perform in a job
85
affirmative action
Activities undertaken by businesses to recruit and promote members of groups whose economic progress has been hindered through either legal barriers or established practices
86
philanthropy
The donation of money, time, goods, or services to charitable, humanitarian, or educational institutions
87
Strategic corporate social responsibility
Social contributions that are directly aligned with a company’s overall business strategy
88
what is the triple bottom line?
1. profit 2. people 3. the planet
89
distribution strategy
A firm’s overall plan for moving products through marketing intermediaries and on to final customers
90
marketing intermediaries
Businesspeople and organizations that assist in moving and marketing goods between producers and consumers(Service providers may use marketing intermediaries too)
91
what is the order of the distribution channel?
1. producer 2. wholesaler 3. retailer 4. customer
92
what groups makeup marketing intermediaries?
the wholesaler and retailer
93
wholesalers
Intermediaries that sell products to other intermediaries for resale
94
retailers
Intermediaries that sell goods and services to individuals for their own personal use
95
what do wholesalers do?
– Transport and store products | – Break shipments into smaller units
96
what do retailers do?
– Provide promotional and sales support – Assume risks – Provide financing
97
what is a direct-distribution channel?
a distribution channel that goes right from producers to consumer
98
intensive market coverage
as many retail outlets as possible
99
selective market coverage
a limited number of outlets
100
exclusive market coverage
one(or very few) outlets in each geographical area

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