Ch.1 Business Functions
what does "business" mean?
an organization involved in activities aimed to produce and deliver a good or service TO MAKE A PROFIT!
a business owned by one person and has unlimited liability?
sole proprietor
what is equilibrium?
product supplied= quantity demanded
explain what MANAGEMENT is?
The planning, organizing, staffing, controlling, and leading people, processes, and assets in order to achieve a goal or task in the best way possible.
what is a roadmap of the business’s overall objectives, and the strategy and details of how those objectives will be achieved?
Business Plan
name the 6 business functions
HR
Strategy
Info. Management
Operations
Marketing
Finance/Accounting
what type of corp has to pay double taxation? meaning, the company pays taxes and then the owner pays taxes on their dividends?
C-Corp
explain the difference between a surplus and a shortage?
surplus: you have more supply than there is demand
shortage: there is a high demand but you don't have enough supply
why do people stay or leave companies?
because of poor management or leadership
give 2 benefits of an LLC
No double taxation so it is the preferred structure for most entrepreneurs.
Relatively easy to get started.
How a company sells its products to customers and its plan for making a profit is called what?
a Business Model
what is the main difference between LIMITED and GENERAL partnerships?
has to do with the amount of liability and the amount of loss that can occur!
Give examples of products that have an ELASTIC DEMAND
soda, fast food restaurants, clothes
what is the difference between recruiting and staffing?
Recruiting: The active searching for the appropriate candidates to fill open positions within an organization.
staffing: recruit, interview, hire, and orient the appropriate people to fill organizational roles.
what is the difference between the servant and coaching leadership styles?
servant: motivates and inspires others by serving them. uses influence rather than power
coaching: leader mentors people by saying “consider this” and seeks to develop and improve employees for the future
which business model buys products from a distributor or wholesaler or manufacturer and sells directly to the consuming public
retailer
What does LLC Stand for?
Limited Liability Company
explain the Law of Supply and the Law of Demand
Law of Demand: price increases, demand decreases (price decreases, demand increases)
Law of Supply: price increases, supply increases. (Price decreases, supple decreases)
what is the difference between an authoritative and democratic leadership style?
authoritative: creates and charts the plan. communications the message of:"follow me". confident and energizing. They take time to explain and gain the BUY IN
Democratic: involves employee input before making decision.
what type of business model collects information on the goods or service and connects YOU with the best possible solution
Name 5 different Business Models
manufacturer
Distributor
Wholesaler
Retailer
Bricks and Clicks
E-Commerce
Franchise
Nickel and dime
subscriptions
freemium
aggregator
online marketplace
direct sales
What does limited liability mean?
your liability is limited to the amount of money you invest
what does an item have when the demand for a product has no change (stays the same), no matter what the price is?
INELASTIC DEMAND
list all the leadership styles
autocratic
affiliative
authoritative
coaching
democratic
delegative
servant
explain what a joint venture is
two or more companies come together to develop a new product, sell a certain product, or combine certain business activities