Business Test TOMORROW i am a genius

PLOC

Planning

Leading

Organizing

Controlling

Planning:

Setting long or short term goals

Leading

Staying on task

Telling workers how to do things

Motivation

Organizing

Work structure

Assigning tasks/work delegation

Controlling

Keeping accounting records

Security cameras

CRIMNL

Capital

Raw Materials

Information

Management

Natural Resources

Labour

Capital

What the business owns:

• Machines

• Vehicles

• Buildings

Liquid Capital

A form of assets that can be used to convert into money.

• Stocks

• Bonds

• Accounts receivable

Non-liquid examples and real name

Buildings or equipment are examples of a non-liquid asset. Harder to turn into liquid-capital.

These are called Capital Goods.

Intellectual property

The ideas or the talent of a business’ workforce, is a non-tangible form of capital.

Raw Materials Definition + Examples of Ingredients and Supplies

Raw materials are any PROCESSED goods used in the manufacturing of other goods.

Ingredients of Pants:

• Zippers

• Fabric

• Thread

Supplies of Pants:

• Sewing machine oil or electric

• Paper for invoices

Information

To produce goods and services in a competitive global market, businesses require more information about

• New technology

• Customers

• Competition

• Political conditions

• Sources of supply

Management

Management consists of the people who run the business and control or direct the factors of production 

Management also allocatescompany resourcesand makesdecisionsthat affect the day-to-day and long-term operations of the business.

Natural Resources

Primary industries that take something out of the Earth or the sea can be referred to as extractive industries. (Goods that are directly from the earth.)

1. Fuel and Energy

2. Logging and Forestry

3. Water

4. Agriculture

5. Mining

6. Fishing and Trapping

Labor + 2 ways businesses do to save on labour costs

Labour includes all of the physical and mental (cognitive) work needed to produce goods and services. Labour is expensive so most businesses seek ways to save on labour costs.

Businesses now automate and consolidate to save on labour costs.

Consolidation

Consolidation occurs when many small manufacturing sites close down and are centralized into one large site. —> Used to reduce labor costs.

=—-

Consolidation reduces overhead and operating costs by combining smaller production units into one larger, more efficient facility.

Automate

Automation means that many tasks are performed by more them one person using machines.

The Production Process

Purchasing

Processing

Quality Control

Grading (Sometimes)

Purchasing

Some considerations when making purchasing decisions include

• the quality of the raw material being purchased

• the price of the raw material being purchased

• any additional costs associated with the purchase of the raw material

Processing

All non-service businesses convert one item into another through processing. This is called conversion processing.

• bauxite 🡪 aluminum 

• sugar cane 🡪 sugar

• wheat 🡪 flour

• timber or logs 🡪 paper

Quality Control

Quality control are standards that ensure all produced products conform to prescribed levels of excellence. 

What is ISO?

International Organization for Standards (ISO).  Creates the best standards for the production process for different procedures.

• Numerous industries in 157 countries. 

Grading (only part of the production process for some products)

Grading is the act of checking products for size and quality against fixed standards for the product or product category in terms of its technical characteristics

Producers can charge more for higher-grade items.

Grade A Beef, or Premium Gas, instead of regular gasoline.

Productivity Formula

Total Output

— — — — — = Productivity Units

Total Input

Example:

100 Buns

— — — — = 40 Buns an Hour

2.5 hours

Productivity is a comparison of the resources used with the products or services that result.