Business Functions and Key Concepts (Video)

Vocabulary flashcards covering the lecture notes on business definitions, core functions, and the relationship between finance and accounting.

Business

An organization that starts with people and can be for‑profit or nonprofit, engaged in industrial, commercial, and professional activities.

Six business functions

The core functions: Human Resources, Strategy, Operations, Information Management, Marketing, and Finance/Accounting.

Human Resource (HR)

Employees; people assets who work for a business and are responsible for recruiting, hiring, onboarding, training, evaluating, and terminating.

Mission

The company’s purpose and focal point.

Strategy

The plan of action to meet the company’s goals and objectives.

Tactics

The specific procedures and actions used to support the strategy.

Information management

The function involving people, processes, and systems that collect, organize, store, and secure data to make informed decisions.

Technology in information management

Great companies use technology to gather, compile, and analyze data to inform decision-making.

Operations function

The daily functions of an organization that manage inputs and outputs, including manufacturing, purchasing, and logistics.

Marketing function

The pursuit of ideation, creation, communication, and delivery of profitable products/services to targeted customers and society; uses channels like video ads, TV, billboards, influencers, and social media.

4P’s of Marketing

Product, Price, Place, Promotion.

Finance

Management of assets, liabilities, equity, and cash flow; focuses on financial planning, ROI, ROE, and future growth.

ROI (Return on Investment)

A measure of profitability relative to the cost of an investment.

ROE (Return on Equity)

Profitability relative to shareholders’ equity.

Accounting

The process of recording, maintaining, and reporting an organization’s financial transactions and records.

Finance vs. Accounting

Finance manages assets, liabilities, equity, and cash flow; Accounting records, maintains, and reports financial transactions.