AH

Untitled Flashcard Set

BUS 120 – Midterm Study Guide

Chapter 1

1. Advantages and disadvantages of entrepreneurship

  • Advantages: Freedom to make decisions, opportunity for wealth creation, personal satisfaction, flexibility, potential for innovation.

  • Disadvantages: High risk of failure, long work hours, uncertain income, need for management skills, responsibility for all business decisions.

2. How can governments in less developed countries reduce the risk of starting a business?

  • Establish legal systems that protect property rights and contracts.

  • Reduce corruption and excessive regulation.

  • Provide access to financing (microloans, grants).

  • Improve infrastructure (roads, power, internet).

  • Offer education and training for entrepreneurs.

3. How has technology benefited workers, businesses, and consumers?

  • Workers: Flexible work options (remote work), more efficient tools, improved communication.

  • Businesses: Lower costs, improved productivity, global reach, e-commerce opportunities.

  • Consumers: Access to information, online shopping, better customer service, lower prices.

Chapter 5

1. Advantages and disadvantages of sole proprietorships

  • Advantages: Easy to start/end, own boss, pride of ownership, retention of profits, no special taxes.

  • Disadvantages: Unlimited liability, limited financial resources, management challenges, time commitment, limited growth/lifespan.

2. Advantages and disadvantages of limited liability companies (LLCs)

  • Advantages: Limited liability, flexible ownership rules, flexible profit distribution, fewer regulations than corporations, choice of taxation.

  • Disadvantages: No stock (harder to raise capital), limited life span in some states, more paperwork than sole proprietorships/partnerships.

Chapter 6

1. What is intrapreneuring?

  • Intrapreneuring is when employees within a company act like entrepreneurs by developing new ideas, products, or processes, while still working for the organization.

2. Sources of funds for starting a business

  • Personal savings.

  • Family and friends.

  • Banks/credit unions (loans).

  • Angel investors.

  • Venture capitalists.

  • Government programs (e.g., SBA loans).

  • Crowdfunding.

Chapter 7

1. Four primary functions of management

  • Planning: Setting goals and determining best strategies.

  • Organizing: Allocating resources, establishing structures.

  • Leading: Guiding, motivating, and directing employees.

  • Controlling: Measuring performance, comparing with goals, taking corrective action.

2. Three categories of managerial skills

  • Technical skills: Knowledge of specific tasks.

  • Human relations skills: Communication, motivation, leadership.

  • Conceptual skills: Strategic thinking, “big picture” decision-making.

Chapter 8

1. What is an inverted organization?

  • An organization where frontline workers (those closest to customers) are empowered to make decisions, and management’s role is to support them.

2. Difference between formal and informal organization

  • Formal organization: The official structure defined by charts, roles, and reporting lines.

  • Informal organization: The unofficial system of relationships, communication, and cooperation that naturally develops among workers.

Chapter 9

1. What have U.S. manufacturers done to achieve increased output?

  • Implemented automation and robotics.

  • Adopted lean manufacturing and just-in-time systems.

  • Outsourced non-core functions.

  • Emphasized continuous improvement and quality management.

2. How do managers evaluate different sites?

  • Availability and cost of labor.

  • Proximity to customers and suppliers.

  • Access to transportation and utilities.

  • Cost of land, taxes, and regulations.

  • Community quality of life.

Chapter 10

1. What is Frederick Taylor known for?

  • “Father of Scientific Management” — studied work methods to increase efficiency by breaking jobs into specialized tasks and setting performance standards.

2. What led to more human-based managerial styles?

  • The Hawthorne Studies (1920s–30s) showed that employee attitudes, attention, and social factors affected productivity → shift toward motivation and human relations.

3. What is goal-setting theory?

  • A motivation theory stating that employees are motivated by clear, specific, challenging, and attainable goals combined with feedback.

4. Characteristics of work that affect motivation and performance

  • Skill variety.

  • Task identity (completing a whole task).

  • Task significance (impact on others).

  • Autonomy.

  • Feedback.

Chapter 11

1. Methods HR managers use to recruit new employees

  • Internal recruiting (promotions, transfers).

  • External recruiting (job postings, ads, job fairs, online).

  • College recruiting and internships.

  • Employment agencies and headhunters.

  • Employee referrals.

2. Six steps managers use to evaluate performance

  1. Establish performance standards.

  2. Communicate standards.

  3. Measure actual performance.

  4. Compare actual performance with standards.

  5. Discuss results with employees.

  6. Take corrective action (or reward success).

Chapter 12

1. Five topics in labor–management negotiations

  • Compensation (wages, salaries).

  • Benefits (healthcare, retirement).

  • Working hours and overtime.

  • Workplace safety conditions.

  • Job security and layoffs.

  • (Other common ones: grievance procedures, union rights).

✅ That’s your study guide — all questions covered.

Do you want me to also make a condensed “cheat sheet” version (bullet-only, no explanations) so you can do last-minute review before the exam?