Business Characteristics
What is a producer?
•Develop products for distribution from raw goods
Ex: Farming
What is a sole proprietorship and an example?
•Is owned and operated by one individual
•Is the most common form of business ownership
What are the 4 basic organizational structures?
Top Management, Middle Managers, Supervisors, Operative Employees
What does a CPA stand for?
Certified Public Accountant
What does cash flow indicate?
The financial health of a company
What is a non-profit organization?
•Provide goods and services to businesses and individuals
•Operate on donations, volunteers and philanthropists rather than income/profit
What does SBA stand for?
Small Business Administration
What are the advantages and disadvantages of a simple structures?
•Advantages
−fast
−flexible
−inexpensive
−accountability is clear
•Disadvantages
−effective only in small organizations
−has few policies and rules to guide operations
−can have too much decision-making power at the top level
What is the basic accounting equation?
Assets = Liabilities + Owner's Equity
What represents the total value of a company or an individual?
Net worth
What does a manufacturer do?
•Change raw or processed goods into finished goods
What are the two types of partnerships?
General and Limited
What are the advantages and disadvantages of a functional structure?
•Advantages
−productivity and work specialization
−job satisfaction
−minimizes duplication
•Disadvantages
−loses sight of employee interests in pursuit of goals
−individuals may become isolated and have little understanding of what people in other functions are doing
What is the term that is associated with making or acquiring a product?
Cost of goods sold
What is known as an obligations of one company to another?
Liabilities
What are the 4 steps of the employment process?
−assess employment needs
−recruit potential employees
−select employee who fulfills goals
−help employee get oriented
What is a franchise and an example of one?
•Is the right or license to sell a company’s product or service at a designated location
How many supervisors do you report to in the chain of command?
1
What type of asset can easily be converted to cash?
Liquid asset
How can we communicate information which gives specific details about a company?
Accounting Systems
What are the 2 types of motivation?
−extrinsic
•motivation through outside sources
−for example: money, benefits, recognition
−intrinsic
•motivation occurring internally
−for example: challenge, enjoyment, accomplishment
What are angel investors?
•Are wealthy individuals who seek high returns through private investments
What are the differences between formal and informal structures?
•Are clearly defined and organized
•Can be found in any business large or small
•Can be charted or described visually
•Include specific organizational details such as:
−work specialization
−span of control
−chain of command
−authority
•Are laid-back and undefined
•Involve employees completing tasks which may not always fit their job description
•Are normally found in smaller businesses with fewer employees
•Allow for social interactions and preferences
What measures the loss in value of an asset?
Depreciation
What are items of value of a company or an individual?
Assets