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44 Cards in this Set
- Front
- Back
sole proprietorships
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unlimited personal liability and final authority
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partnerships
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general partnerships- share responsibility
limited liability partnership - involed as investors but no input on operations joint venture - like gp but for a limited time |
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corporations
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4 chracteristics:
1. liability limited to assests ownd by co 2. life can etend beyond original owner 3. central management structure 4.ownership transferred freely by selling stock |
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llc
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exists for a finite period of time and can be extended must have at most 2 characteristics of a corporation
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Organization functions
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-production and operations
-sales and marketing -finance and accounting -IT -People |
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Productions and operations
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*production
-process by which product is created *operations -all activities necessary to produce goods |
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activities in operations
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*Product design
*capacity *production layout *scheduling *quality management *inventory management *technology *facility location *cost control |
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Capacity
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determining how much can be produced with what is available (inputs) and what changes of inputs are needed
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Production Layout
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way in which goods or services will be produced e.g. the design of assemby line or process to provide service
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scheduling
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making sure serices are available at peak of customer demand
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sales and marketing
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*sales
-transferring from business to customer *marketing -promote and distribute products, support sales, research design, determine pricing, determine target market |
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4 p's of marketing
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*product
-product development *price -list price, discounts and allowances *placement -where to sell *promotion |
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finance and accounting
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*finance
-obtaining and granting credit -investing and managing -banking relationships *accounting -recording and reporting transactions |
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finacial analyst
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-# employees needed at each production level
-cost data -profit margin -project staffing levels |
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fiscal year
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annual reporting period for accounting
most on july 1 |
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balance sheet
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assets=liabilities+equity
financial condition of org for a specific day, usually end of accounting period: monthly, quarterly, and annual |
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income statement (P&L)
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info about financial results of operations
-revenue -cost -overhead -profit or los |
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statement of cash flows
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where money came from and what i was used for
-cash from sales -cash from investments -cash to assets |
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accrued expense
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expenses like vacation leave that have been incurred but not yet paid
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audited financial statements
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examined by auditor to see if they fairly represent the business
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budget
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projection of revenue and expenses to control current expenses
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equity
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value of the business to owners after all liabilities have been paid
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gross profit
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sales-cogs
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net profit
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gross profit-operating expenses
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gaap
generally accepted accounting principles |
established by fasb-financial accounting standrds board
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profit
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money earned after all expenses have been paid
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retained earnings
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net profits that aren't distributed to owners but remain in business as equity
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revenue
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money received from customers
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IT
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managing technology systems
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org. life cycles
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startup
growth maturity decline |
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risks of stages
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startup - funding is an issue, work close together and many things at the same time
growth -morale isues as more management comes in -needs exceed infrastructure for operations *maturity -becomes bureaucratic and resistant to competitive change *decline -with no reinvigorationsm may cease to exist |
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benefits of stages
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*startup
-work close together *growth -can provide more benefits to employees *maturity -compensation is enhanced and can bring in undeveloped talent to develop within *decline -acquisition -chance for revival |
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strategic planning
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systematic way of setting direction for success
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strategic planning process
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1. Pre-planning state
2. Environmental Scan 3. Formulate Strategy 4. Implement Strategy 5. Evaluate Strategy & adjust |
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1. pre-planning stage
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sets the stage, reduces errors in planning, ensures commitment from leaders
Decide on: -process -participants -time frame -planning tools for environmental scan |
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strategy
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uses strengths of a business for competitive advantage
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goal
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direction business will take and what it will achieve
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objective
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specific description of steps taken to achieve goals
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2. Environmental Scan
a. internal b. external |
collect info about factors needed for planning
a. Internal(talent&material) -statistical models -swot analysis b. external (business env.) -swot analysis -pest analysis -porter's 5 forces |
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Statistical Models
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quantitative analyzes to id trends e.g. turnover rates or buying habits
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SWOT Analysis
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As related to plan:
*stengths-internal support *weakness-internal obstacles *opportunity-external support *threat-external obstacles |
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PEST Analysis
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*political
-regulations & situations *economic -econ.strentgh,unemployment rate,inflation,fiscal policy *social -demographics:target market *technology -cost and advances |
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Porter's 5 factor analysis
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1. threat of new competitors entering market
2. reliance on suppliers 3. diversity of customer base 4. replacement products available at reasonable cost 5. level of market competition |
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3. Formulate strategy
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-vision statement
-mission statement -corporate values statement -corporate goals *SMART model |