BUSINESS 101 FINAL EXAM

BUSINESS 101 FINAL EXAM - BUSINESS 101 FINAL EXAM I....

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BUSINESS 101 FINAL EXAM I. Critical Thinking A. 5 Stages of Critical Thinking A.1. Confused Fact Finder A.1.a. Contradictory arguments A.1.b. Fails to read carefully A.2. Biased Jumper A.2.a. Doesn’t recognize own bias A.2.b. Ignores contradictory evident A.2.c. Acknowledges multiple viewpoints, but can only asses a problem from his perspective A.3. Perpetual Analyzer A.3.a. Doesn’t fully defend one solution A.3.b. “Wishy-washy” A.4. Pragmatic Performer A.4.a. Focuses on practical solutions, considers alternatives A.4.b. (-) Thinks task is finished when they reach a decision A.5. Strategic Re-Visioner A.5.a. Seeks continuous, lifelong learning A.5.b. Thinks “out of the box” A.5.c. Anticipates change B. Einstein: Critical Thinking is the ability to turn answers into questions. II. Introduction to Business A. Stakeholders: A.1. Owners A.1.a. Corporate Officers (appointed by BOD) are considered owners because of their fiduciary responsibility to the owners A.2. Employees
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A.3. Customers A.4. Suppliers A.5. Society B. Business: profit seeking enterprises or activities that provide goods and services B.1. Established to serve needs of consumers B.2. Owners seek to make profits C. Profit: rewards for taking risk C.1. “Net Income” or “Bottom Line” C.2. What owners get to keep after deducting costs of business D. Revenue: D.1. Sales, “top of the line” D.2. What customers pay you when they buy goods or services E. Fiduciary Relationship: the agent has a duty to ensure the best interest for the principle F. Basic Forms of Ownership: F.1. Sole Proprietorship: F.1.a. Largest amount, lowest sales F.1.b. Advantages: F.1.b.i. Easy to start F.1.b.ii. Business Income = Personal Income F.1.c. Disadvantages: F.1.c.i. Unlimited Liability (responsible for all debt) F.1.c.ii. Limited Resources (financial and human) F.1.c.iii. Limited Potential Growth F.2. Partnership: F.2.a. Smallest amount, middle sales F.2.b. Advantages F.2.b.i. More Financial Resources F.2.b.ii. Shared Management/ Complimentary Skills F.2.b.iii. Another owner… Longer Survival
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Disadvantages F.2.c.i. (Sometimes) Unlimited Liability F.2.c.ii. Division of Profit F.2.c.iii. Potential for Conflict F.2.c.iv. Exit Conditions planned F.2.d. 2 Types of Partnerships F.2.d.i. Limited Partnership: one GP exists on record, rest are passive partners - Passive Partners: - Cannot actively manage the firm) - Limited Liability F.2.d.ii. General Partnership: - Each partner actively manages the firm - Each GP has unlimited liability F.3. Corporation: F.3.a. Middle amount, highest sales F.3.b. Legal entity with its own life F.3.b.i. Can sign contracts F.3.b.ii. Can sue and be sued F.3.c. Articles of Incorporation: birth certificate for corporation F.3.d. Advantages of Incorporation: F.3.d.i. Limited Liability F.3.d.ii. More Access to Money - Can sell shares of ownership to others F.3.d.iii. Separation of ownership from management F.3.d.iv. Ease of ownership transfer F.3.e. Disadvantages of Incorporation:
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BUSINESS 101 FINAL EXAM - BUSINESS 101 FINAL EXAM I....

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