Business Admin Core: Based On Wrong Answers

Personal Vision

A view of the future you wish to create; based more on emotion than logic and often abstract or long-term.

Instruction Manual Use

When fixing or assembling equipment, read and perform each step in order to avoid mistakes or damage.

Group Problem-Solving

A process that takes more time because it involves discussion, differing opinions, and coordination.

Forms of Information

Information usually comes in physical form (on paper) or electronic form (emails, spreadsheets, media).

Common Law

Law created by court decisions and precedents, not written legislation.

Stakeholder Engagement

Keeping stakeholders involved by sharing plans and obtaining feedback throughout a project.

Effective Written Communication

Communication that is clear and easy to understand so readers do not struggle to find meaning.

Laissez-Faire Leadership

A hands-off leadership style where the leader provides little control and allows employees to self-direct.

Health and Safety Regulations

Rules requiring businesses to report workplace accidents to ensure safe working conditions.

Change

The only constant in life and business; all individuals and organizations experience change.

Net Pay

The amount of money received after deductions—the actual take-home pay.

Appropriate Communication Channel

Casual messages (like free coffee announcements) are best shared in person.

Pricing Function (Marketing)

Determines what customers pay for products to ensure both buyers and sellers feel they are getting good value.

Block Format

A business letter format where all text is left-aligned with no paragraph indents and double spacing between sections.

Order of Elements (Block Format)

Sender’s address → Date → Recipient’s name and address → Salutation → Body → Closing → Signature.

Functions of Marketing

The seven main activities: Product/Service Management, Marketing Information Management, Financing, Pricing, Promotion, Distribution, Selling.

Product/Service Management

Developing, maintaining, and improving products to meet customer needs.

Marketing Information Management

Gathering and using data to make marketing decisions.

Financing

Obtaining funds and offering customer payment options.

Pricing

Setting prices to balance profit and customer value.

Promotion

Communicating with customers to inform, persuade, or remind them.

Distribution (Place)

Delivering products to customers efficiently.

Selling

Helping customers make purchasing decisions that meet their needs.

Lending Investments

You lend money to an organization or government and earn interest (e.g., bonds, CDs).

Ownership Investments

You own an asset or share in something that can increase in value (e.g., stocks, real estate).

Cash Equivalents

Short-term, low-risk investments that can easily be converted to cash (e.g., money market accounts).

Alternative Investments

Nontraditional investments such as commodities, hedge funds, or cryptocurrencies.

Ethical Principle

A moral rule or standard guiding what is right or wrong.

Honesty

Always tell the truth and be transparent.

Fairness

Treat everyone equally and without bias.

Integrity

Do the right thing even when no one is watching.

Respect

Value others’ rights and opinions.

Responsibility

Be accountable for your actions and duties.

Compassion

Show concern and kindness for others.

Functional Areas of Business

The main divisions: Management, Finance and Accounting, Marketing, Operations, Human Resources, IT, Customer Service.

Management

Plans, organizes, and oversees all business activities.

Finance vs Accounting

Accounting: gather info, backward looking, Finance: make plans based on info, forward looking

Marketing

Promotes products or services to attract customers.

Operations/Production

Produces goods or delivers services efficiently.

Human Resources (HR)

Manages hiring, training, and employee relations.

Information Technology (IT)

Maintains computer systems and data infrastructure.

Customer Service

Helps customers with questions, orders, and issues.

Finance

Focuses on planning and managing how money is used and grown; future-oriented. The process of obtaining funds and using them to achieve the goals of the business.

Accounting

Focuses on recording and reporting past financial transactions; past-oriented.

Connection Between Finance and Accounting

Accounting provides data; finance uses it for analysis and decision-making.

Standing Committee

A permanent group that handles ongoing responsibilities.

Ad Hoc Committee

A temporary group formed for a specific purpose or project.

Executive Committee

A small group of leaders who make major organizational decisions.

Advisory Committee

Provides expert advice but does not make final decisions.

Joint Committee

Includes members from different departments working together on shared issues.

Chronological Résumé

Lists work experience in reverse order; best for consistent job history.

Functional Résumé

Focuses on skills and abilities rather than dates or job titles.

Combination Résumé

Mixes skills and work experience to show both strengths.

Targeted Résumé

Customized for a specific job or company using relevant experience.

Mini/Digital Résumé

A short online version used for networking or social media.

Bonds

a type of investment where you lend money to a government or company in exchange for regular interest payments and your money back at a set date.

Stock

an investment that gives you partial ownership of a company and the chance to gain or lose money as its value changes.

Stock vs. Bond

Stocks make you an owner with higher risk and higher potential reward, offering dividends and big price changes but low stability. Bonds make you a lender with lower risk and steady interest income, offering more stability and higher priority in bankruptcy.

Depreciation

the reduction in value of goods or assets occurring over a period of time.

marketing functions

one of the key activities that businesses perform to help promote, sell, deliver, and improve products or services for customers. Each function plays a different role, but together they help a business reach and satisfy customers. 

1. Product/Service Management

2. Marketing Info Management

3. Pricing 

4. Promotion

5. Selling

6. Distribution (Channel Management) 

7. Financing

Product/Selling Management

obtaining, developing, maintaining, and improving a product or service mix in response to market opportunities. Successful product/service management activities include calculating the costs of products.

revolving credit account

type of credit account that limits the total amount of money that may be owed and charges interest on outstanding balances. (e.g., credit cards).

outstanding balances

amounts of money that are still owed and have not been paid yet.

Installment Credit

A loan you repay in fixed monthly payments; interest is almost always charged (ex: car loans, student loans, mortgages).

Open Credit

A credit account where the full balance must be paid each month; no interest is charged because you can’t carry a balance (ex: charge cards).

Service Credit

You receive a service now and pay later; no interest unless you pay late, in which case fees or penalties may apply (ex: utilities, phone, internet).

Secured Credit

Credit backed by collateral; interest is charged, often at a lower rate due to reduced risk (ex: secured credit cards, auto loans, mortgages).

Unsecured Credit

Credit not backed by collateral; interest is charged, usually at higher rates because there’s more risk to the lender (ex: normal credit cards, personal loans).

marketing concept

philosophy of conducting business that is based on the belief that all business activities should be aimed toward satisfying consumer wants and needs while achieving company goals.

C Corporation (C-Corp)

A corporation that is taxed separately from its owners and offers strong liability protection.

S Corporation (S-Corp)

A corporation that avoids double taxation by passing profits and losses directly to shareholders.

Limited Liability Company (LLC)

A flexible business structure that protects owners from liability and is taxed like a partnership.

Nonprofit Corporation

A corporation created for charitable, educational, or social purposes that does not pay federal income taxes.

Private Corporation

A corporation owned by a small group of people whose stock is not sold to the public.

Public Corporation

A corporation whose stock is sold openly on the stock market and owned by many shareholders.

Cooperative (Co-op)

A business owned and operated by the people who use its services or buy its goods.

General Partnership

A partnership where all partners share management and have unlimited liability.

Limited Partnership (LP)

A partnership with one general partner who manages and one limited partner who only invests and has limited liability.

Limited Liability Partnership (LLP)

A partnership where all partners have limited liability and share management.

Joint Venture

A temporary partnership formed for a single project or short-term purpose.

Silent Partner

A partner who invests money but does not participate in management.

4 Ways marketers communicate with customers

Advertising, Sales Promotion, Publicity, Personal Selling