ADMN Midterm

What are the positive impacts of business on the economy and society?

Generate wealth, create jobs, provide products and services, foster competition, stimulate innovation, improve productivity, influence trends, raise living standards.

What are the negative impacts of business on the economy and society?

Income inequality, degrade the environment, unethical labor.

What are distinctive competencies?

Capabilities and strengths that differentiate companies, including specialized knowledge, brand reputation, customer service, or unique resources.

What is a product ecosystem?

A network of products and services that work together to create added value for customers.

Provide an example of a product ecosystem.

Apple's ecosystem includes phones, chargers, and headphones.

What is the difference between individual ethics and business ethics?

Individual ethics are moral principles guiding personal behavior; business ethics are ethical standards guiding business operations.

What is social responsibility in business?

The ethical obligations of a company to contribute positively to society and maximize profits for stakeholders.

What are the dimensions of corporate social responsibility (CSR)?

1. Economic - ensure profitability and sustainability; 2. Legal - follow laws and regulations; 3. Ethical - perform morally right actions; 4. Philanthropic - engage in charitable activities and support social causes.

What is marketing?

The process of promoting, selling, and distributing a product or service to a target audience.

What are marketing environments?

Internal and external factors that influence a company’s ability to develop and maintain successful relationships with customers, divided into micro and macro factors.

What are the 5 P's of the marketing mix?

Product, Price, Place, Promotion, People.

What is direct competition?

Competing with similar products in the same market.

What is indirect competition?

Different products that solve the same problem.

List the main types of marketing research.

Exploratory, Descriptive, Casual, Primary, Secondary.

What is competitive advantage? (including types)

An advantage over competitors, which can be cost, product, service, or niche (focus).

What is the accounting equation?

Liabilities + Equity = Assets.

What are the financial statements?

Balance sheets (financial position at a specific point), Income statements (summarizes revenues, expenses, and profits over a period), Budgets (financial plans of income and expenses over a period).

What are the primary sources of funding for startups?

Equity (selling shares), Debt (borrowing money), Internal (own money or profits).

What distinguishes secured loans from unsecured loans?

Secured loans are backed by collateral; unsecured loans rely on the honesty of the borrower.

What are the pros and cons of debt financing?

Pros: owner has full control of the company. Cons: must be repaid regardless of performance, includes interest.

What are the benefits of equity financing?

No repayment, shared risk, access to more expertise.

What are the downsides of equity financing?

Loss of control and profit sharing.

What is the core role of Human Resources Management?

Strategic approach to managing people and everything related to employees.

Name the steps in the HR Management Process.

HR planning, Recruitment and selection, Onboarding, Training, Employee retention.