MGMT Exam 2: Questions
Two of the main causes for small business failure are financial: low profits
and/or industry weakness, and insufficient fends and/or high operating
costs. Both are beyond the control of owners and are simply risks that must
From the Lectures
Money (, why it is important, forms of money . . .)
- Any object which serves as a medium of exchange, a store of value, and a unit of account.
- Anything that people generally accept as payment for goods and services.
Ways of reporting GDP & GNP
Both are generally given in $US and may be expressed in terms of
absolute (total value) or per capita (literally per head; total value
divided by the number of people in the countrys population)
They may be shown a
MGMT 101 Test 2
Stock Ownership: ownership of shares give you:
The right to share in profits dividend payments are part of a firms
profits that may be distributed to stockholders either as cash or as
additional shares of stock they are given a
there are 4 basic types of business operation
gov. departments : e.g.
non-profit: charities - united way
not-for-profit: research institutions - battelle
for-profit: companies nike
For Profit Ownership
among the for profit compa
09/10/12: Review Session
Revenues, Costs, and Profits
Two Key branches of ethics:
Descriptive ethics involves describing, characterizing and studying morality. What is.
Normative ethics involves supplying and justifying moral systems What should be
Labor regulations: Legislation
Makes it unfair for management to:
Interfere with the formation and administration of a labor org.
Discriminate against employing people with the intent of stopping a union from
Quality and productivity
Productivity: output relative to input, or the efficiency with which recourses are
o The means more output fro given resources or, for a given output
resources are freed for other uses
For business more profit
Definition: Intangibles, such as time, expertise, or some activity that can be purchased.
OR: The intangible products that result from a high degree of labor input and can be purchased by consumers.
OR: Activities that benefit other busin
Management 101 Book Notes
Bond: A corporate certificate indicating that a person has lent money to a firm.
What type of financing? Key means of long-term financing for many organizations,
classified as Debt Financing, which is borrowing money the company
FINAL TEST NOTES
Investing: Why do we do it? To create wealth
What is wealth?
Approx. 3.5% of American households have a net worth of greater than $1 Million
This represents about 50% of all US wealth
The median (50th Percentile) wealth of the 3.5% is 1.6
Stock Symbol or Ticker Symbol: a short abbreviation used to uniquely identify publicly traded shares of a particular stock on a
particular stock market. May consist of letters, numbers or a combination of both. Ticker symbol refers to the symbols
Strategies for International Business
Benefits: Low investment
Problems: overcoming trade barriers, cultural differences
Benefits: ease of entry
Problems: Low control, loss of proprietary knowledge
Under a licensing agree
GDP: The value of all goods and services produced within a country. Regardless of the nationality of the company producing them.
GNP (Gross National Product): The value of goods and services produced by the companies of a country regardless of wh
MGMT 101 Notes
Business: The activities connected with the production, movement, acquisition, and exchange of goods and services in a market for profit.
Business: Any organization that maintains itself by taking in resources and increasing their