Management and Leadership Lecture Notes

These flashcards cover essential concepts from management and leadership, focusing on definitions, comparisons, and key terms.

Management vs. Leadership

Management focuses on resources, while leadership focuses on people (others).

Empowerment

Giving authority to employees to make decisions, like allowing cashiers to handle price checks.

Corporate Culture

The attitudes, values, and standards that shape an organization.

Decision-Making Process

The first step is defining the problem or opportunity.

Contingency Plan

A plan created for potential future events, such as a hurricane.

Distinctive Leadership Styles

The three types are autocratic, free reign, and democratic (participative).

Skills of Leadership

The three skills are human, conceptual, and technical.

Conceptual Skill

The ability to see the organization as a whole and understand how all the parts fit together.

Business Forms

The four forms are sole proprietorship, partnership, corporation, and limited liability company.

Sole Proprietorship

The most common business form, easiest to start, but difficult to raise capital.

General Partnership

A partnership where all partners share equal management responsibilities.

Limited Partnership

A partnership with one or more partners who contribute capital but do not manage.

Stock Investment Risk

When a company goes bankrupt, the maximum loss is limited to the initial investment.

Double Taxation

Taxes on both the corporation's earnings and the dividends paid to stockholders.

Mergers

The three types are horizontal, vertical, and conglomerate mergers.

Acquisition

The process of one company taking over another company.

Entrepreneur

A risk taker who starts and manages a business.

Business Plan Components

Includes an executive summary, marketing plan, operating plan, and financial plan.

Business Financing Types

Debt (borrowed funds) and equity (ownership funds).

Venture Capitalist vs. Angel Investor

A venture capitalist invests in startups in exchange for equity, while an angel investor invests personal funds.

Four Functions of Management

The four functions are planning, organizing, leading, and controlling.

Types of Plans

Strategic (long-term), tactical, operational, and contingency plans.

Three Levels of Management

Top-level, middle-level, and first-line management.