BMGT110 - Midterm

WEEK THREE 

  • McGregor X vs Y suggests that X folks are more intrinsically motivated while Y folks are intrinsically motivated

  • Ethics: Society’s accepted standards of moral behavior

    • Ethics is caught, not taught 


  • Management: a process used to accomplish organizational goals through planning, organizing, leading, and controlling 

    • Managers today are collaborative, more teamwork

    • What managers do

      • Planning 

        • Setting organizational goals 

        • Developing strategies 

        • Determining necessary resources 

        • Setting precise standards

      • Leading 

        • Guiding and motivating employees to work efficiently 

        • Giving assignments 

        • Explaining routines 

        • Clarifying policies

        • Giving feedback 

      • Organizing 

        •  Allocating resources, assigning tasks 

        • Preparing a structure 

        • Recruiting, selecting, training employees

        • Placing employees where they will be most effective

      • Controlling 

        • Measuring results against corporate objectives 

        • Monitoring performance relative to standards 

        • Rewarding outstanding performance  

    • Goals and Objectives 

    • Strategic planning, done by top management 

  • Hygiene V. Motivational Factors 

    • Hygiene → factors that cause dissatisfaction, but changing them will have little effect 

      • Company policy and administration

      • Supervision

      • Working conditions

      • Interpersonal relations (co-workers)

      • Salary, status, and job security

    • Motivators

      • Factors can be used to motivate workers 


  • Hawthorne Effect, which refers to individuals changing their behavior when they know they are being watched. 

  • We also reviewed Maslow’s hierarchy of needs and the pursuit of self-actualization once lower levels of needs are met, as well as distinguishing between Herzberg’s motivators and hygiene factors. Motivators drive employees to be better, while Hygiene factors are dissatisfied when they are absent. 


WEEK FOUR

  • Entrepreneurship is accepting the risk of starting and running a business 

    • Entrepreneurs risk both their time and capital when starting a business

    • Most entrepreneurial ventures are riskier than investing in the stock or bond market, so they expect additional reward for accepting that risk

      • They take risks for opportunity, profit, and challenge 

  • Sole proprietorship: business owned and usually managed by one person 

  • Two or more people run the business → partnership

  • Corporation: a legal entity with the authority to act and have liability apart from its owners 

  • LLC is a hybrid of partnership and corporate forms that allows the liability protection of a corporation with the tax advantages of a partnership

    • Corporations taxed twice, LLCs taxed once 


WEEK FIVE

  •  Accounting: recording, classifying, summarizing, and interpreting of financial events and transactions in an organization to provide management and other interested parties with the financial information they need to make decisions 

  • Accounting cycle 

    • Analyze source documents 

    • Record transactions in journals 

    • Transfer journal entries to the ledger 

    • Take a trial balance 

    • Prepare financial statements 

    • Analyze financial statements 

  • Bookkeeping → recording of business transactions 

  • Financial statement: a summary of all the financial transactions that have occurred over a particular period

    • Indicate a firm’s health and stability 

    • Balance sheet: reports a firm’s financial conditions 

    • Income Statement: summarizes revenue, cost of goods sold, and expenses 

    • Statement of Cash Flows: provides a summary of money coming into and going out of the firm

  • Liquidity: ease with which assets can be converted to cash 

    • Current assets: items that can or will be converted to cash within a year 

    • Fixed assets: long-term assets that are permanent 

    • Intangible assets: long-term assets that have no physical form but do have value 

  • Liabilities: what businesses owe to others 

  • Revenue: monetary value of what a firm received for goods sold 

    • Revenue - Costs of goods sold = Gross Margin

    • Gross Margin - Operating expenses = Net income before taxes

    • Net income before taxes - taxes = Net income or net loss