Feb 23, 2025
Balance Sheet: The financial statement displaying assets, liabilities, and capital of a business at a particular point in time, details balance of income and expenditure over preceding period
Ownership Statement: Ex: ABC company was formed as a C corporation in New York State on June 2, 1996. Ninety percent of the company’s shares are owned by its president, John Smith. The company vice president and director of sales and marketing each hold five percent. Owner Equity:
Executive Summary: A brief account of the key points contained in a business plan. Business Structures Functional Organizational Structure: work is arranged within main business functions such as production, operations, marketing, and human resources. allows for a high degree of specialization for employees, and is easily scalable should the organization grow a team structure that groups employees into different departments based on areas of expertise.
Product-based divisional structure: An organizational structure that groups brands or categories of products into separate divisions
Market-Based Divisional Structure: The divisions of an organization are based around markets, industries or customer types. The divisions of an organization are based around markets, industry or customer types.
Geographical Divisional Structure: A divisional structure in which divisions are organized according to the requirement of the different locations in which an organization operates.
Process-Based Structure: This organizational design structure emphasizes the lateral relationships in an organization and allows the organization to use resources for customer satisfactions. This structure focuses around the system driving the structure and the customer defining the performance.
Matrix Structure: an organization combines functional and divisional chains of command in a grid so that there are two command structures-vertical and horizontal
Circular Structure: A method of organizing a president's staff in which several presidential assistants report directly to the president.
Flat Structure: characterized by an overall broad span of management and relatively few hierarchical levels limits the levels of management so all staff are only a few steps away from leadership
Network Structure: the pattern of communication that occurs regularly among each member of the team
Types of Businesses General Partnership: a type of partnership in which all partners share equally in both responsibility and liability PROS: Start-up is relatively inexpensive and easy Do not have to pay the minimum tax that is required for corporations or LLCs More sources of capital + knowledge CONS: All owners are personally liable for the company's debts Partners have to bear with other partner's decisions Poorly organized partnerships (like on a handshake) can lead to conflict regarding decision making etc.
Sole Proprietorship: a business owned and managed by a single individual PROS: Startup is very inexpensive and easy ○ Only needs to register his or her name and secure local licenses ○ Can freely mix business and personal assets CONS: Personally liable for company's debts ○ Rarely survive the death of owner ○ Cannot sell shares in the company
Corporation: A business owned by stockholders who share in its profits but are not personally responsible for its debts PROS: Owners are protected from personal liability regarding the debts of the company Can easily turn public Can easily raise capital by selling securities Can easily transfer ownership via transfer of securities Unlimited lifetime CONS: annual meetings + many formalities Most expensive to set up Require annual fees and periodic filings to the state
Limited Liability Company: A business organization in which the business (not the owner) is liable for the company's debts PROS: Few ongoing formalities doesn't require annual meetings Owners are protected from personal liability regarding the debts of the company CONS: Very hard to go from an LLC to a public company. Would likely need a change to a regular corporation before filing to go public. More expensive to set up than partnerships Requires annual fees + filings to the state
4 P’s Of Marketing: Price, place, promotion, product Business Outsourcing: is a business practice in which a company hires a third party to perform tasks, handle operations or provide services for the company. Access to expertise Control Process: (1) establish standards, (2) measure performance, (3) compare actual performance with standards and identify any deviations, (4) determine the reason for deviations, (5) take corrective action if needed. Strategic Plan: an organization's broadest plan, developed as a guide for major policy setting and decision making Operational Plan: identifies how work will be done, who will do it, and what resources will be needed Strategic management allows company leaders to determine the business course for an organization, while operational management implements specific procedures for following that course Executive Summary: a brief account of the key points contained in a business plan Job Description: a written description of the basic tasks, duties, and responsibilities required of an employee holding a particular job
Angel Investing: refers to the earliest stage of venture capital, in which investors fund the first cash needs of an entrepreneurial idea. Venture Capital: money provided by large investors to finance new products and new businesses that have a good chance to be very profitable Investment Banks: a bank that provides financial services for corporate and institutional customers, such as investing and raising capital and arranging mergers and acquisitions. Crowdfunding: raising money for a project or venture by obtaining many small amounts of money from many people
Bulk Storage: produce is piled in room-sized bins, which exerts forces that must be resisted by the building walls Brick and Mortar: actual buildings, such as stores and warehouses E-commerce: electronic business or exchange conducted over the internet Wholesaling: sell (goods) in large quantities at low prices to be retailed by others.
Characteristics of Poor Work Ethic:
Limited Partnership: partnership in which only one partner is required to be a general partner In a limited partnership, the general partner makes the day-to-day decisions that impact the business.
Private Corp: Public Corp:
Market Research: The process of evaluating the viability of a new service or product through research conducted directly with potential customers. It allows a company to define its target market and get opinions and other feedback from consumers about their interest in a product or service.
Command Economy: an economy in which production, investment, prices, and incomes are determined centrally by a government.
Roleplay
Addressing Financial Problems:
3 steps to improve financial decision making
Use financial statements to analyze the companies performance
Calculate ROI to decide which opportunities are worth pursuing
Create budgets to keep company on track
Four Functions of Management: Planning: create organizational goals and decide on steps to meet them Organizing: distribute the needed resources and delegate tasks among departments to meet the goals.
Business Communications Communication: creates safe environment where employees feel like, they can express their ideas, ensures all employees know goals and expectations Consistent and polite communication with clients creates strong connections and encourages repeat business In management: Manager better understands and guide their team Constructive feedback helps employees improve and stay motivated Delegate tasks and handle workplace conflicts Communication Skills: Verbal Non-verbal Technological - spoken and body language cues difficult to communicate Listening Communication barriers Solution: choose correct channel for messaging (longer email, shorter text), avoid use of technological jargon or idioms, put critical information first, consider the audience Conflict resolution International communication challenges: Cultural differences, languages differences Solution: businesses should study language and cultural differences before the meeting Effective meetings: Invocation must communicate need for the meeting and purpose Create agenda Take notes about meeting for future reference
Online communication: Applications Collaboration tools: applications must allow for multiple people to work at once
Human resources Staffing plan: strategic plan to recruit the right employees to meet a company's goals Gap Analysis: compare the company's real performance with the desired one. Make plan to use human resources better to reach desired performance Outsourcing: sourcing and outside company to complete a task rather than doing it internally Pros: cheaper, better expertise, faster Cons: communication barriers, fewer domestic jobs, decreased customer loyalty
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