The Nature of Business
An organization that strives for a profit by providing goods and services desired by its customers.
What is a business?
The concern of businesses for the welfare of society as a whole; consists of obligations beyond those required by law or contracts.
A business with under 500 employees that is independently managed, is owned by an individual or a small group of investors, is based locally, and is not a dominant company in its industry.
What is a small business?
Departmentalization that is based on the primary functions performed within an organizational unit.
What is functional departmentalization?
The process of hiring, developing, motivating, and evaluating employees to achieve organizational goals.
What is human resource (HR) management?
an organization that exists to achieve some goal other than the usual business goal of profit.
What is Not-For-Profit?
A set of moral standards for judging whether something is right or wrong.
What is Ethics?
People with vision, drive, and creativity who are willing to take the risk of starting and managing a business to make a profit, or greatly changing the scope and direction of an existing firm.
What is an Entrepreneur?
The network of connections and channels of communication based on the informal relationships of individuals inside an organization.
What is the informal organization?
A study of the tasks required to do a particular job well.
What is a job analysis?
Tangible items manufactured by businesses.
What is a Good?
Individuals or groups to whom a business has a responsibility; include employees, customers, the general public, and investors.
What is a stakeholder?
Entrepreneurs who apply their creativity, vision, and risk-taking within a large corporation, rather than starting a company of their own.
What is an intrapreneur?
A visual representation of the structured relationships among tasks and the people given the authority to do those tasks.
What is an organizational chart?
The tasks and responsibilities of a job.
What is a job description?
The combined talents and skills of the workforce.
What is Knowledge?
A situation where a person must choose from a set of actions that may be ethical or unethical.
What is an ethical Issue?
A formal written statement that describes in detail the idea for a new business and how it will be carried out; 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.
What is a business plan?
The process of pushing decision-making authority down the organizational hierarchy.
What is decentralization?
A list of the skills, knowledge, and abilities a person must have to fill a job.
What is a job specification?
The money left over after all costs are paid.
What is Profit?
A set of guidelines prepared by a firm to provide its employees with the knowledge of what the firm expects in terms of their responsibilities and behavior toward fellow employees, customers, and suppliers.
What is a code of ethics?
A government agency that speaks on behalf of small business; specifically it helps people start and manage small businesses, advises them in the areas of finance and management, and helps them win federal contracts.
What is the Small Business Administration (SBA)?
The degree to which formal authority is concentrated in one area or level of an organization. Top management makes most of the decisions.
What is centralization?
A set of unique features of an organization that are perceived by customers and potential customers as significant and superior to the competition.
What is a competitive advantage?