BUS 100 Final Exam Review 2022 Question and Answers

5 Components of Management Planning - ANSWER Planning Organizing Staffing Directing Controlling Planning - ANSWER Determining an organization objectives & how to accomplish them Types of Planning - ANSWER Strategic: long-term, senior management Tactical: Short range, implanting activities in strategic plan Operational: Short-term first line supervisors Organizing - ANSWER Structuring resources & activities to accomplish objectives Staffing - ANSWER Selecting & training employees to meet organizational objectives Directing - ANSWER Motivating & leading employees to meet organizational objectives Controlling - ANSWER Evaluating & correcting activities to keep organization on course 3 Ways Businesses can be formed - ANSWER Sole Proprietorships Partnerships Corporations Sole Proprietorships - ANSWER Businesses owned and operated by one individual; the most common form of business organization in the United States Advantage of Sole Proprietorship - ANSWER East of Cost of Formation Disadvantage of Sole Proprietorship - ANSWER Lack of qualified employees Partnerships - ANSWER A partnership that involves a complete sharing in both the management and the liability of the business Advantage of Partnership - ANSWER Ease of Organization Disadvantage of Partnership - ANSWER Unlimited Liability Corporations - ANSWER A legal entity, created by the state, whose assets and liabilities are separate from its owners' Advantage of a Corporation - ANSWER Limited Liability Disadvantage of a Corporation - ANSWER Double Taxation Organizational Culture - ANSWER A firm's shared values, beliefs, traditions, philosophies, rules, and role models for behavior Organizational Structure - ANSWER The arrangement or relationship or positions within an organization Departmentalization - ANSWER The grouping of jobs into working units usually called departments, units, groups, or divisions Functional - ANSWER The grouping of jobs that perform similar functional activities, such as finance, manufacturing, marketing, and human resources. Product - ANSWER The organization of jobs in relation to the products of the firm Geographical - ANSWER The grouping of jobs according to geographic location, such as state, region, country, or continent Customer - ANSWER The arrangement of jobs around the needs of various types of customers Business Ethics - ANSWER Principles and standards that determine acceptable conduct in business Social Responsibility - ANSWER A business's obligation to maximize its positive impact and minimize its negative impact on society Codes of Ethics - ANSWER Formalized rules and standards that describe what a company expects of its employees Business - ANSWER Individuals or organization who try to earn a profit by providing products that satisfy people's needs Profit - ANSWER The difference between what it costs to make and sell a product and what a customer pays for it Nonprofit - ANSWER Organizations that may provide goods or services but do not have the fundamental purpose of earning profits Inputs - ANSWER Capacity: max amount Labor-force: unique Inventory: Don't run out of supplies Facilities: Location Outputs - ANSWER Quality Innovation Responsiveness Efficiency Product Life Cycle - ANSWER Intro Growth Maturity Decline Intro - ANSWER Consumer awareness and acceptance of the product are limited, profits are negative Growth - ANSWER Sales increase rapidly and profits peak, then start to decline Maturity - ANSWER Start to increase at maturity then the sales curve peaks and starts to decline while profits continue to decline Decline - ANSWER Sales continue to fall rapidly Mayo - ANSWER Hawthorne Studies: Being paid attention to matters Maslow - ANSWER Hierarchy of Needs: Physiological, Security, Social, Esteem, Self-Actualization, un met needs matter Herzberg - ANSWER 2 Factor Theory: Hygiene factors absence motivates McGregor - ANSWER Theory X & Y: X forced to work, Y: wants to work Adams - ANSWER Equity Theory: fairness matters Vroom - ANSWER Expectancy Theory: Belief in attainment of reward matters Ouchi - ANSWER Theory Z: employee participation matters Price Skimming - ANSWER Charging the highest possible price that buyers who want the product will pay Penetration Price - ANSWER A low price designed to help a product enter the market and gain market share rapidly Price - ANSWER A value placed on an object exchanged between a buyer and a seller Place - ANSWER Making products available to customers in the quantities desired Product (Marketing) - ANSWER Is a complex mix of tangible and intangible attributes that provide satisfaction and benefits Promotion - ANSWER A persuasive form of communication Income Statement - ANSWER A financial report that shows an organization's profitability over a period of time Revenue - ANSWER Is the total amount of money received from the sale of goods or services as well as from other business activities Expenses - ANSWER Are the costs incurred in the day-to-day operations of an organization Net Income - ANSWER Is the total profit or loss after all expenses including taxes have been deducted from revenue Balance Sheet - ANSWER A snapshot of an organization's financial position at a given moment Assets - ANSWER All assets accounts are listed in descending order of liquidity Liabilities - ANSWER Total assets must be financed either through borrowing or through owner investments Owners' Equity - ANSWER Includes the owners' contributions to the organization along with income earned by the organization The Statement of Cash Flows - ANSWER Explains how the company's cash changed from the beginning of the accounting period to the end Cash from operating activities - ANSWER Combining changes in the revenue, expense, current assets accounts, and liability accounts Cash from investing activities - ANSWER Changes in the long-term or fixed asset accounts Cash from financing activities - ANSWER Changes in the long-term liability accounts in owners' equity Short-term working capital - ANSWER short-term working capital, manage short term assets & liabilities Long-term capital planning - ANSWER long-term capital planning, analyzing needs & selecting projects assets to Capital Structure - ANSWER Decisions to raise money via debt and equity Profitability Ratios - ANSWER Net income/sales Asset Utilization Ratios - ANSWER sales/total assets Liquidity Ratios - ANSWER Current assets-inventory/current liabilities Debt Utilization Ratios - ANSWER operating income/interest Per Share Data - ANSWER net income/# of shares outstanding Push Strategy - ANSWER an attempt to motivate intermediaries to push the product down to their customers Pull Strategy - ANSWER The use of promotion to create customer demand for a product so that consumers exert pressure on marketing channel members to make it available Components of Promotion - ANSWER Advertising: paid from of non-personal communication Personal Selling: Direct, two-way communication with buyers (most flexible) Publicity: through mass media (news story form) Sales Promotion: direct inducements offering added value or some other incentive for buyers