Business Management Technical Skills (13%)

Corporation

A company or group of people authorized to act as a single entity (legally a person) and recognized as such in law.

A business owned by stockholders who share in its profits but are not personally responsible for its debts.

A legal entity that is separate from its owners. It has the ability to enter into contracts, incur debts, and pay taxes.

Limited Liability Company (LLC)

A hybrid form of business enterprise that offers the limited liability of a corporation but the tax advantages of a partnership.

35% of Small Business are this type of structure in the USA.

A hybrid business structure, where it combines the operational characteristics of a sole proprietorship or partnership while limiting the liability of the investors to the amount they invested like a corporation.

Partnership (General Partnership)

A business organization owned by two or more persons who agree on a specific division of responsibilities and profits.

A business owned by two or more individuals who share in the profits and losses of the business.'

Each partner is personally liable for the debts and actions of the partnership.

Sole Proprietorship

A business owned and operated by one person. The owner is personally liable for all debts and actions of the business.

Cooperative

A business organization owned and operated by a group of individuals for their mutual benefit.

A business owned and operated by its members, who share in the profits and benefits of the business.

Example: Ocean Spray Cranberries, Inc. is an American agricultural cooperative of growers of cranberries headquartered in Plymouth County, Massachusetts.It currently has over 700 member growers.

Nonprofit Organizations (501c3)

An organization whose goals do not include making a personal profit for its owners or organizers.

A business entity that is organized and operated exclusively for charitable, educational, religious, or scientific purposes.

Franchise

A business arrangement in which one party (the franchisor) grants another party (the franchisee) the right to use its trademark or trade name, as well as certain business systems and processes.

C Corporation (Subchapter C Corporation) / Publicly Traded Company

A corporation whose stock is traded on a public stock exchange, such as the New York Stock Exchange (NYSE) or NASDAQ.

Not every corporation that has stock is traded on a major exchange.***

Merger

When two companies, often competitors, join together to form one company. Most often one of the two companies gives up its brand identity. In other cases, the two brand names are shared.

Limited Partnership

A business where one or more of the partners are not active, have no decision-making power, and are limited in their liability to the amount they invested.

A hybrid business structure where all the partners have decision-making and management power, and have limited liability, meaning they can't lose more than they invested, and, they can't be held responsible (liable) for any of their partner's actions.

S Corporation (Subchapter S Corporation)

Sometimes nicknamed the "Small Business Corporation."

33% of Small Businesses are this type of structure in the USA.

Similar to a C Corporation in that owners' losses are limited to their investment

it is different from a C Corporation in that it is limited by the number of owners / stockholders (100 max).

Also, compared to a C Corporation each stockholders must be U.S. Residents and other companies can't buy ownership / stock.

Licensing

A "licensee" pays a royalty to a "licensor" that allows the licensee rights to use certain intangible property, like trademarks, patents, formulas, processes, designs, and copyrights.

For example, Nike might license the use of the NBA trademark in order to sell certain branded apparel.

B Corporation (Subchapter B Corporation)

A corporation with the purpose of explicitly including overall public benefit in their decisions, versus only considering maximizing shareholder value.

Example: Ben & Jerry's Ice Cream is a B Corporation.

Gantt Chart

A planning tool that is used to guide a bar graph showing production managers what projects are being worked on and what stage they are in at any given time.

A simple bar chart that lists project tasks vertically against the project's time frame, listed horizontally.

SWOT Analysis

A planning tool used to analyze an organization's strengths, weaknesses, opportunities, and threats.

Identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T).

Fishbone Diagram

A planning tool that serves as a visual aid that helps organize cause and effect relationships for "things gone wrong."

Decision Matrix

A planning tool used to compare design solutions against one another, using specific criteria.

PERT (Program Evaluation and Review Technique) Chart

A planning tool that is used to schedule, organize, and coordinate tasks within a project.

It helps in identifying the critical path and estimating the time required to complete a project.

This planning tools focuses primarily on time planning and time management, with a goal of delivering the project as quickly as possible.

Critical Path Method (CPM)

A planning that tool that illustrates the relationships among all the activities involved in completing a project and identifies the sequence of activities likely to take the longest to complete.

This planning is most commonly used for scheduling in construction.

It is sometimes referred to as critical path scheduling because it mainly calculates the minimum time needed to complete a construction project alongside the possible start and end times for the different activities.

Sales Forecasting

A quantitative technique that attempts to estimate the level of sales a business expects to achieve, over a given time period on a particular good or service.

A form of research and planning that estimates how much of a good or service will sell over a given period of time.

Balanced Scorecard

A planning tool that helps with strategy implementation tool that harnesses multiple internal and external performance metrics in order to balance financial and strategic goals of an organization.

Market Segmentation

The process of dividing a market into meaningful, relatively similar, and identifiable segments or groups.

Theses characteristics could include demographic, geographic, behavioral, and psychographic.

Demographic Segmentation

Targeted a certain population / potential market of consumers for a particular good or service based on certain characteristics such as ages, income levels, education levels, languages, religions, occupations, ethnicity / race, marital status, number of children, gender, etc.

Geographic Segmentation

Targeted a certain population / potential market of consumers for a particular good or service based on different geographical units, such as nations, states, regions, counties, cities, neighborhoods, etc.

Could also include where you are from originally and how they can influence some

Behavioral Segmentation

Targeted a certain population / potential market of consumers for a particular good or service based on certain characteristics such lifestyle choices, traditions, general habits, brand preferences, etc.

Could also include usage rate, loyalty status, and / or benefits sought.

The question being asked is "What do they do on a daily, weekly, monthly, and / or yearly basis?"

Psychographic Segmentation

Targeted a certain population / potential market of consumers for a particular good or service based on certain characteristics such as values, attitudes, and / or interests.

Marketing Mix (4 P's)

Product, price, place, and promotion -- the controllable set of activities that an organization uses to respond to the wants and needs of its customers.

Brand Awareness

The extent to which consumers are familiar with the distinctive qualities or image of a particular brand of goods or services

Customer Relationship Management (CRM)

Practices, strategies, and technologies that companies use to manage and analyze customer interactions and data throughout the customer lifecycle, with the goal of improving customer retention and loyalty.

Digital Marketing

The marketing of goods or services using digital technologies, mainly on the internet, but also including mobile phones, display advertising, and any other digital medium.

Social Media Marketing recently has been taking up more of this space recently.

Content Marketing

Creating and distributing relevant and targeted material to attract and engage an audience, with the goal of driving them to a desired action.

Social Media Marketing (SMM)

The use of social media platforms and websites to promote a product or service.

Marketing Research Process

A five-step application of the scientific method that includes (1) defining the problem (2) analyzing the situation (3) getting problem-specific data (4) interpreting the data (5) solving the problem.

Marketing Research

The process of gathering, analyzing, and interpreting information about a particular market in order to offer about a good or or service to be sold in that market

It also examines the past, present, and potential customers interactions and knowledge of a particular good, service, or a brand itself.

Customer Retention

Turning individual consumer transactions into long-term customer relationships.

The practice of keeping customers by building long-term relationships.

The ability of an organization to retain its customer base over some specified period and hopefully it is forever.

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale.

International Trade

The exchange (exporting and importing) of goods and services between countries.

Cultural Sensitivity

The awareness and understanding of different cultural characteristics and norms, and the ability to adapt behavior and communication to be appropriate in different cultural contexts.

Global Market Entry Strategies

The methods and approaches that companies use to enter new international markets, such as exporting, licensing, franchising, joint ventures, and foreign direct investment.

Joint Venture

A partnership in which two or more companies (often from different countries) join to undertake a major project.

Foreign Direct

Investment made by a foreign company in the economy of another country.

Cross-Cultural Communication

Compares the communication styles and patterns of people from very different cultural/social structures, such as nation-states.

The knowledge, motivation, and skills to interact effectively and appropriately with members of different cultures.

Communication that occurs between people from different cultural backgrounds.

Tariffs

Taxes or duties imposed on imported goods and services.

Quota

A restriction placed on the amount imported goods or services allowed to enter or leave a country.

embargoes

An official ban on trade or other commercial activity with a particular country.

Trade Barriers

Government-imposed restrictions that limit or regulate international trade, such as tariffs, quotas, and embargoes.

Global Supply Chain

The network of organizations involved in producing, handling, and distributing goods and services on a global scale.

Cultural Intelligence (CQ)

The ability to function effectively in different cultural contexts, including the ability to understand, adapt to, and interact with people from different cultural backgrounds.

Supply Chain Management (SCM)

Planning and coordinating the movement of goods or services along the supply chain, from the raw materials to the final consumers.

World Trade Organization

A permanent global institution to promote international trade and to settle international trade disputes between member nations.

A trade organization that replaced the old General Agreement on Tariffs and Trade (GATT).

E-Commerce

Electronic business or exchange conducted over the internet.

Balance Sheet / Net Worth Statement

A financial statement that reports assets, liabilities, and owner's equity (net worth) on a specific date.

Assets

A resource of economic value ($$$) that individual or organization owns or controls with expectation it will provide a future benefit.

Liabilities

The legal responsibility of an individual (or entity) for business actions, debts, and obligations.

They are found on the Balance Sheet / Net Worth Statement of for a Business.

Owner's Equity / Net Worth

The value of the assets an organization owns minus the labilities they owe.

Assets - Liabilities

Cash Flow Statement

Statement of an organization's ability to meet its current and short-term obligations, showing incoming and outgoing cash and cash reserves in operations, investments, and financing.

Income Statement

A financial statement that reports a company's revenues and expenses and resulting net income or net loss for a specific period of time.

Revenues - Expenses = Net Income (Profit or Loss)