Business

Businessy Things

The process of setting goals, determining actions to achieve them, and outlining strategies.

Planning

Recruiting and selecting employees for positions within the company (within teams and departments)

Staffing

Structuring tasks and resources to achieve organizational goals effectively.

Organizing

Guiding and motivating employees to work towards the organization's objectives.

Leading

Monitoring performance, comparing it with goals, and taking corrective actions when necessary.

Controlling

Ensuring that different parts of the organization work together harmoniously to achieve common goals.

Coordinating

Belief that employees inherently dislike work, seek to avoid it, lack ambition, need to be controlled, avoid responsibility, and primarily seek security.

McGregor’s Theory X

Belief that employees view work as natural, are capable of self-direction, seek responsibility, can make good decisions, and are motivated by more than just security.

McGregor’s Theory Y

The process of setting objectives and determining the best course of action to achieve them.

Planning

Establishing specific, measurable, achievable, relevant, and time-bound objectives to work towards desired outcomes.

Goal Setting

The process of creating a detailed plan for managing and allocating financial resources for a specific period.

Budgeting

The practice of predicting future financial outcomes based on historical data and trends to assist in decision-making and planning.

Forecasting

The process of identifying, assessing, and prioritizing risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and impact of unfortunate events.

Risk Management

The process of monitoring, analyzing, and optimizing the flow of money in and out of a business to ensure there is enough cash to meet short-term obligations and support the company's operations.

Managing Cash Flow

The process of identifying, assessing, and prioritizing risks to minimize, monitor, and control the probability or impact of unfortunate events.

Risk Management

The strategic distribution of resources such as money, personnel, and equipment to various projects or tasks based on their priority and importance.

Resource Allocation

Focuses on minimizing waste, optimizing processes, and maximizing efficiency to enhance productivity. It involves continuous improvement and eliminating activities that do not add value.

Lean Management

Aims to improve product and service quality by involving all employees in a systematic approach to continuous improvement, customer satisfaction, and efficient processes.

Total Quality Management (TQM)

Minimizes inventory levels by ordering and producing goods only when they are needed, reducing storage costs and waste.

Just-in-Time (JIT) Inventory Management

Involves coordinating the flow of materials, information, and services from suppliers to consumers to minimize costs and optimize processes.

Supply Chain Management

Involves redesigning business processes from the ground up to improve efficiency, quality, and customer satisfaction.

Process Reengineering

A continuous improvement philosophy that encourages small, incremental changes by involving employees at all levels to identify and address inefficiencies.

Kaizen

What are the six structures?

Functions, Divisional, Matrix, Flat, Hierarchical, Network

Which structure? Fosters skill development within departments

Functional Structure

Which structure? Specialized expertise and efficient use of resources

Functional Structure

Which structure? Enables collaboration with external partners and experts

Network Structure

Which structure? Cost-effective due to outsourcing and partnerships

Network Structure

Which structure? Reduced bureaucracy and hierarchy

Flat Structure

Which structure? Encourages employee empowerment and autonomy

Flat Structure

Which structure? Faster decision-making in each division

Divisional Structure

Which structure? Allows for flexibility and innovation within divisions

Divisional Structure

Which structure? Enhanced collaboration and communication across functions and projects

Matrix Structure

Which structure? Allows for specialization and cross-functional expertise

Matrix Structure

Which structure? Well-defined roles and responsibilities

Hierarchical

Which structure? Suitable for small organizations

Hierarchical

What are the six functions of management?

Planning, Controlling, Leading, Staffing, Organizing, Project Management

What are the six leadership types?

Affiliative, Democratic, Coercive, Pacesetting, Coaching, and Authoritative

Leadership style: Creates harmony

• Builds relationships

• People First

• Empathy

• Communication

• Overall positive impact

• Helpful with motivation and conflict resolution

Affiliative

Leadership Style:

• Encourages participation

• Collaboration

• Communication

• Overall positive impact

• Helpful when creating buy-in

Democratic

Leadership Style:

• Sets high-performance standards

• Urgency

• High drive to succeed

• Overall negative impact

• Helpful to get quick results from a highly motivated team

Pacesetting

Leadership Style:

• Develops people for the future

• Encourages trying new things

• Empathy, self-awareness

• Overall positive impact

• Helpful for employee development & long-term success

Coaching

Leadership Style:

• Demands compliance

• Wants things done their way

• High drive to succeed

• Overall negative impact

• Helpful with addressing problematic employees

Coercive

Leadership Style:

• Vision oriented

• Encourages employees to follow

• Self-confidence

• Empathy

• Overall positive impact

• Helpful when clear direction is needed

Authoritative

• Employees only receive compensation for sales completed during a time period

• There is a possibility that the employee will not be compensated if no sales are achieved

Commission

• A dollar amount paid per year

• Typically no overtime for employees who may be required to work well over the 40-hour workweek

Salary

• Set amount per hour up to 40 hours per week 

• Hours above 40 usually require overtime pay  (Typically 1 ½  times the regular hourly rate)

Hourly Pay

• Based on productivity.

• The more tasks or projects completed, the more money is earned

Per Unit Pay

• Utilized to improve employee satisfaction but not required

Bonuses & Pay Increases

This type of leader typically creates harmony and building relationships

Affiliative

This type of leader demands compliance and wants things done their way

Coercive

What kind of leader typically encourages participation and is helpful when creating buy-in

Democratic

(Blank) of employees is always preferable over new hires as the cost benefit is high

Retention

Refers to the professional maintenance of a favorable public image by a company or other organization

Public Relations

What is the goal of public relations?

To craft a narrative that is appealing to the public at large, but more importantly, prospective customers

What does the federal court system include?

Supreme Court, U.S. Courts of Appeals, the U.S. District Cours, and various other specialized courts, such as the U.S. Tax Court and the U.S. Court of Federal Claims.

This law prohibits anticompetitive behavior and unfair business practices, including price-fixing and monopolies.

Sherman Antitrust Act (1890)

This law further strengthens antitrust laws and makes it illegal for companies to engage in certain practices, such as exclusive dealing and tying arrangements.

Clayton Antitrust Act (1914)

These laws regulate the securities industry and require companies to disclose certain information to investors.

Securities Act of 1933 and Securities Exchange Act of 1934

This law prohibits discrimination on the basis of race, color, religion, sex, or national origin in employment, education, and public accommodations.

Civil Rights Act of 1964

This case established the principle of judicial review, which gives the Supreme Court the power to declare laws unconstitutional.

Marbury v. Madison (1803)

This case established the federal government's power to regulate interstate commerce.

Gibbons v. Ogden (1824)

This case narrowly interpreted the Sherman Antitrust Act and limited the government's ability to regulate monopolies

United States v. E.C. Knight Co. (1895)

This case declared segregation in public schools unconstitutional and paved the way for desegregation in other areas.

Brown v. Board of Education (1954)

This case removed restrictions on corporate and union spending in political campaigns, leading to increased corporate influence in politics.

Citizens United v. Federal Election Commission (2010)

Employers are prohibited from discriminating against a person with a disability. Requires that employers make reasonable accommodations for employees or applicants.  

Americans with Disability Act (1990)

A collection of exclusive rights automatically vested to you once you have created an original work. To be protected by this, the work must be original, creative, and fixed in a tangible medium.

Copyright

A word, phrase, symbol, and/or design that identifies and distinguishes the source of the goods of one party from those of others. 

Trademark

refers to the employer not complying with the terms of the collective bargaining agreement. A violation of this agreement can involve failing to provide required pay or not maintaining safe work conditions. 

Grievance

a method of dispute resolution used as an alternative to litigation. It is commonly designated in collective agreements between employers and employees as the way to resolve disputes. The parties select a neutral third party to hold a formal or informal hearing on the disagreement.

Arbitration

the process in which working people, through their unions, negotiate contracts with their employers to determine their terms of employment, including:

• Pay

  • Benefits

  • Hours

  • Leave

  • Job health and safety policies

  • Ways to balance work and family

Collective Bargaining

a standardized set of laws and regulations for transacting business. It is important because it helps companies in different states to transact with each other by providing a standard legal and contractual framework

Uniform Commercial Code (UCC)

a written or spoken agreement, especially one concerning employment, sales, or tenancy, that is intended to be enforceable by law.

Contract

Legality, Capacity, Offer, Consideration, Intention, Certainty, Acceptance

Elements of a Contract

an act or omission that gives rise to injury or harm to another and amounts to a civil wrong for which courts impose liability

Tort

1. The defendant owed a duty of reasonable care to the plaintiff

2. The defendant did not behave in a reasonable manner to demonstrate care

3. The plaintiff suffered an injury or loss as a result of the defendant’s actions or inactions

Three main components of a tort

The four courts in order from highest to lowest

U.S. Supreme Court, U.S. Court of Appeals, U.S. District Courts, and State Trial Courts

A set of rules and regulations that determine how taxes are calculated and applied to individuals or entities within a specific tax jurisdiction. Usually include provisions for determining taxable income, tax rates, deductions, and credits, as well as requirements for filing tax returns and paying taxes.

Tax Code

Regulations that promote transparency and fairness in the workplace and to help identify and address pay disparities based on gender, race, and other protected characteristics.

Reporting Pay Data

Regulations on businesses that employ workers and independent contractors in the form of federal and state laws.

Employment & Labor Law

Rules and requirements that individuals and businesses must follow in order to obtain a license or permit to conduct certain activities or operate certain types of businesses.

Licensing & Permits

Laws intended to protect consumers and small businesses from unfair business practices such as price-fixing, market allocation, and monopolization.

Antitrust Laws

Designed to protect consumers from spam and unwanted commercial emails, while also ensuring that businesses can effectively use email to promote their products or services.

Email Marketing Regulations

Established by government agencies and other bodies to govern the use of natural resources, prevent pollution, and mitigate the negative effects of industrial and commercial activities.

Environmental Regulation

What are the six considerations for business ethics?

Morality, Trust, Behavior, Professional Relationships, Responsibility, and Reliability

at its root is the study of scarcity and the consequences for the use of scarce resources. It is the study of the production of goods and services, and how various institutions (governments, religious organizations) and groups of people impact the production or consumption of our scarce resources. 

Economics

Every resource in the world is limited

Scarcity

an economic theory that helps explain the relationship between buyers and sellers.

Supply and Demand

a way to analyze any potential reward compared to any potential cost of a given action

Costs and Benefits

an assumption that people and businesses will perform a cost-benefit analysis, and will come to a rational conclusion

Rational expectations

Anything that motivates a person to do something. In economics, something is usually money or investments

Incentives

What is a good?

A physical item (food, house, car, water, clothing)

What is a service?

A task performed for the benefit of whoever is paying for it.

What are the four Factors of Production

Land, Capital, Labor, and Entrepreneurs

All natural resources, including both renewable and nonrenewable

Land

All human resources that can be used to produce goods and provide services

Labor

Human-made tools and materials used in the production process

Capital

Plant, equipment, and machinery that can be used over and over

Fixed Capital

Raw materials, unfinished goods, and unsold inventories that circulate through the production process

Working Capital

The ownership associated with assessing risk and reward and deciding to start a business

Entrepreneurship

the value of the next-highest-valued alternative use of that resource

Opportunity Cost