BMGT110 - Midterm

Theory Y posits that the average person is self-motivated, ambitious, and finds work as natural as play or rest. Theory X assumes that the average person is lazy, dislikes work, and will avoid responsibility.

What does McGregor's X vs Y theory suggest about motivation?

What is ethics in the context of management?

Society’s accepted standards of moral behavior.

According to the lecture, how is ethics acquired?

Ethics is caught, not taught.

Define management as presented in the lecture.

A process used to accomplish organizational goals through planning, organizing, leading, and controlling.

What role do managers play in organizational planning?

Setting organizational goals, developing strategies, determining necessary resources, and setting precise standards.

What is meant by 'leading' in management?

Guiding and motivating employees to work efficiently.

What does the organizing function of management involve?

Allocating resources, assigning tasks, preparing a structure, and recruiting and training employees.

What is the controlling function of management?

Measuring results against corporate objectives and monitoring performance relative to standards.

What distinguishes hygiene factors from motivators?

Hygiene factors can cause dissatisfaction but changing them has little effect, while motivators drive employees to perform better.

What is the Hawthorne Effect?

It refers to individuals changing their behavior when they know they are being watched.

What is entrepreneurship?

Accepting the risk of starting and running a business.

How is a sole proprietorship defined?

A business owned and usually managed by one person.

What characterizes a partnership?

A business run by two or more people.

What is a corporation?

A legal entity with the authority to act and have liability apart from its owners.

What is an LLC?

A hybrid of partnership and corporate forms that offers liability protection like a corporation and tax advantages like a partnership.

What is accounting?

Recording, classifying, summarizing, and interpreting financial transactions and events.

What are the steps in the accounting cycle?

Analyze source documents, record transactions, transfer to ledger, take trial balance, prepare financial statements, analyze statements.

What is liquidity in financial terms?

The ease with which assets can be converted to cash.

Define liabilities in a business context.

What businesses owe to others.

What does revenue indicate in business?

The monetary value of what a firm receives for goods sold.

What equation represents Gross Margin?

Revenue minus Costs of Goods Sold.

What is the final calculation for determining net income or loss?

Net income before taxes minus taxes.