FTCE Business test 6-12

Matching Principle

requires that expenses be recorded when incurred in earning revenue

Statement of Shareholders

Provides a summary of changes in the equity section of the balance sheet over a time period

Transformational Leadership

Leadership style focused on inspiring and motivating followers to achieve their highest potential and work toward shared goals

C Corporation

Standard Corp where the business is taxed separately from its owners. EX- NFl, a For-Profit Organization.

S corporation

A Corp that passes income, losses, deductions and credits to its shareholders for federal tax purposes, Avoiding double taxation EX-Local Vendors, Tailgate Vendors

Non-Profit Corporation

Corp for proposes other then Generating profit, such as charities

Professional Corporation

Corp designed for licensed pros, such as doctors, lawyers, accountants. EX- PCs help licensed pros serving the NFL Manage liabilities

Behavioral Leadership

Leadership approach that focuses on the behaviors of leaders. What leaders do, rather then who they are. EX- Bill Belicheck

Contingency Planning

Process of preparing for unexpected events to ensure a business can adapt. EX- Covid 19 NBA Bubble

targeted resume

Customized to a specific job or industry focusing on the qualifications and skills most relevant to the job. EX- graphic designer applying for a football design role highlights only his sports edits

Functional Resume

Focuses on skills and qualifications rather than chronological order. EX-College grad with volunteer XP but limited professional Xp uses this resume to highlight his skills

Integrated Resume

Combines elements of both chronological and functional resume, balancing focus on work history and skills EX- Marketing professional changing industry

Chronemics

Study of how time affects communication and behavior EX- being on time for meetings showing people you respect their time

Kinesics

Study of body movement gestures, posture and facial expression as forms of communication. EX- nodding, showing you agree to something or understand

Haptics

The study of touch as a form of communication. Ex- Firm handshake showing respect

Theory X

Assumes that employees do not like work and will try to do as littler as possible. Also assumes that people do not possess ambition and desires security first

Theory Y

Assumes that employees are self-motivated and enjoy wok just like they might enjoy play.

Total Quality management

Management method that strives for better internal processes and increased customer satisfaction

Management by Objectives (MBO)

Focuses in the creation of objectives or goals. A key component is both managers and employees create objectives

Activity Based management

Goal is to eliminate or improve the activates that are not valuable to the company

Functions of management

planning, organizing, leading, controlling

Strategic Planning

Deals with the company as a whole and might be related to the objectives and vision of the business

Tactical Planning

Outlines the tactics the company will use to fulfill the strategic plan

Operational planning

deals with the daily running of the company

Levels of management

top level, mid level, low level

Top level managers

In charge of running the organization as a whole and making major decisions for the company. CEOs are examples

Mid level managers

Bring organization plans to fruition. Have some authority and are liaison between top level and low level management. Have decent amount of experience a department or GM manager are examples

Low Level managers

Spend their time leading, directing and supervising employees. Have more skills then employees and are good with dealing with people. Examples are supervisors and foreman

authoritarian leadership style

rules and regulations are strict, and the manager keeps a firm control. Alot of supervision and the relationship is purely professional

democratic leadership style

Manager does not make all the Decisions , but instead shares them with the group. There is discussion and debate and the employees are encouraged to provide ideas. There is still guidance's and the leader makes the decisions

Paternalistic leadership Style

manager acts almost as a parent and the employees act as children who trust and are loyal to their leader

Laissez-faire Leadership style

Workers make all the decisions without any managerial control

Money Market Security

can be sold to a dealer, then to the market, or straight to a buy and hold investor. Does not cost as much as credit within a bank, not secured and the maturity is between 1 and 364 days

Time value of money

The present value of money is worth more then the same amount of money in the future.

Time value of money formula

PV+FV/(1+R)

Sales Budget

Budget that shows the expected sales for a period of time

functional structure

Organizes the employees. tasks and supervision in the company by function. Examples would be a marketing department, a production department, ETC.

Team structure

Where people with different ability's are put together to build teams that can achieve more than individuals alone.

Network structure

Business functions that ca be accomplished with less cost/ or better quality by others that are outsourced

Matrix Structure

Employees are grouped by function and product for maximum efficiency. Example- if a company sells both cars and boats, they might have a cat sales department and a boat sales dept

Product-based structure

The company is organized by product . Example- a store having a produce section, dairy section , etc

Centralized Structure

One person makes decisions for the company and also allows for quick decisions and efficiency because it is only one person

Decentralized structure

There is a team and the decisions are made at different levels, also allow multiple people to contribute

Formal structure

Exact chain of leadership and will start with owner or CEO and work its way down.

Informal Structure

Centered on project groups or even friendship groups. People will pick up on roles even if not told to do so

cross-Training

When employees are trained to preform functions outside of the typical functions of their job

Maslow Hierarchy of needs #5

phycological needs

Maslow Hierarchy of needs #4

Security

Maslow Hierarchy of needs #3

social

Maslow Hierarchy of needs #2

Esteem

Maslow Hierarchy of needs #1

Self Realization

Collective Bargaining

When a company's management engages in talks with representatives of a workforce ( often a trade Union)

Effects of group dynamics on individual behavior

People can behave differently when in a group, and how groups act is an area of study called group dynamics

Groupthink

A negative behavior that occurs when the people in the group[ want harmony so much that they minimize opposing viewpoints

Americans Disabilities Act (ADA)

Protects those with physical and mental disabilities from discriminations

Equal employment opportunities Commission (EEOC)

Forbids discrimination against an employee or job applicant due to color, race, gender, ETC

Age Discriminations in employment act (ADEA)

Forbids Discriminations based on a persons age

Tort

A civil wrong made against a property( your person is your property) may be classified as unintentional or intentional.

Consignment

An arrangement where goods are entrusted to a dealer to sell on behalf of the owner, with payment made only after the sale.

Intentional Tort

A tort committed by one who intends to do the act that creates harm

strict tort lability

A civil wrong that involves taking action that is so inherently dangerous under the circumstances of its performance that no amount of due can make it safe

Bankruptcy code

Providing liquidation of the debtors assets in order to repay the creditors certain assets or aggregate value of assets of the debtor, may be exempt based on state law

form of bankruptcy for businesses

Allows them to continue operating under court supervision as they repay their restructured debt

Form of bankruptcy for individuals

Allows the debtors to keep their property and use their income to pay a portion of their debts over three to five years

Quid pro quo

something given with the expectation of receiving something in return

Blooms taxonomy

Six levels within the cognitive domain for learning

6 Blooms taxonomy

Knowledge, comprehension , application, analysis, synthesis and evaluation

Socratic method

Way of teaching developed by the Socrates that used a question and answer format to force students to use their reason to see things for themselves

Patent

A legal right granted for an invention, giving the inventor exclusive rights to use, sell, or license the invention for a certain period of time.

Due Process

A legal requirement that the state must respect all legal rights owed to a person, ensuring fair treatment through the judicial system.

Liability

A party’s legal responsibility for behaviors, actions, or inactions. If someone does not meet his duty, he could have a lawsuit brought against him

Federal Trade Commission (FTC)

Protects consumers by stopping business from performing unfair or deceptive practices.

Securities and exchange commission (SEC

Protects investors, maintaining the integrity of the market and aiding in the formatting of capital

opportunity costs

What a producer gives up by choosing a different option

Quotas

Put restrictions on the amount of imports

Trade deficit

A situation where a country's imports exceed its exports, leading to a negative balance of trade.

General agreement on tariffs and trades (GATT)

Strives to lower obstacles to global trade such as quotas tariffs and subsidies