Sm Bus Mng exam 3

  1. business
    an organization that takes inputs of raw materials, capital, labor and management skills to produce useful outputs of goods and services so as to earn a profit.
  2. a person, partnership or coporation engaged oin commerce, manufacturing or services as a profit seeking enterprise or concern.
  3. enterpreneur
    one who organizes/manages & assumes the risk of a business firm.
  4. a small business is one that is
    • 1. actively managed by the owner
    • 2. highley personalized
    • 3. largly local in its area of operation
    • 4. largly dependent on internal sources of capital
    • 5. independtly own & operated & does not dominate the field of operation
  5. small business administration act
    principal goverment agency concerned with the financing, operation and management of a small business
  6. established by the Small Business Act ib 1953 to
    combat growing monopolies by the larger businesses
  7. purpose
    to encourage competition by small business as a bases of free enterprise
  8. the small business administration defines small business based upon number of employees
    • minning/manufacturing- 500 to 1500 ppl
    • wholesale- up to 500 ppl
    • retail- 25 to 300 ppl
    • service- 25 to 300 ppl
  9. dollar sales volume
    3 1/2 million on up depending on type of business
  10. types of business activity
    • manufacturing business
    • merchandising business
    • service business
  11. manufacturing business
    one who makes finished goods from raw materials by hand or machinery
  12. merchandising buisness
    they purchase finished goods for resale
  13. service business
    provides a service as oppose a product
  14. interdependence of business
    small business are essential to enable a few large ones to concentrate on those economic where their efforts are more effective.
  15. S.B. creates
    • 52% of all private employment
    • 51% of the nations total output of goods & services (as of 2002)
  16. stimulating economic competition
    economic development of the U.S. has resulted from the efforts of small business
  17. innovation
    individuals and small business provide the major source of new ideas, inventions, and innovations
  18. managment
    the art & science of motivating people into achieving
  19. external enviroment (factors outside company)
    • competitors
    • technological change
    • economic conditions
    • societal values and attitudes
    • political process
    • physical condition
  20. competitors
    important for managers to recognize and understand the activities of their competitors in a market in order to make decisions about pricing, product, modifications and advertising
  21. technological change
    this can lead to decrease in price due to the discovery of a cheaper method for manufacturing a product (steel) or can result in an organizations product becomingf obsolete
  22. economic conditions
    inflation rate, intrest rates
  23. societal values and attitudes
    environment vs. cremation, 7-11 vs. playboy
  24. political process
    federal, state, local taxes
  25. physical condition
    natural events, sunny, rainy, snowy, tornadoes, hurricanes, earthquakes
  26. internal environment (factors inside company)
    • like employee's
    • research in development (R & D)
    • financing
    • marketing
    • advertising
  27. management skills
    • technical skills
    • human skills
    • conceptual skills
  28. technical skills
    the ability that are nessary to carry out specific task that have been assigned
  29. human skills
    the ability to work with, motivate and direct individuals for a common goals
  30. conceputal skills
    ability to understand that degree of complexity in a given situation and to reduce that complexity to a level at which specific courses of action can be derived
  31. Management Activities
    • 1. Planning
    • 2. Organizing
    • 3. Motivating
    • 4. Directing
    • 5. Controlling
  32. Planning
    the selection of ordering of task that are required to achieve an organization goals
  33. Organizing
    the assignement & coridination of task & resources necesary to perform each task
  34. Motivating
    Goal directing forces that organize the tension caused by unsatisfy needs
  35. Directing
    the process of motivating, leading & influencing activities of subornates
  36. Controlling
    selection, evaluation & comparison of information in order to correct any task improperly preformed
  37. Organizational goals
    desired state of affairs which the organization tries to realize
  38. Two main functions of organization goals:
    • A. Goals affect the way the organization relates to the enviroment, serving to clarify the connection between organizational activities and other organizations, groups and individuals in the enviroment
    • B. Goals guide the internal activites of the organization, providing employees knowledge of task scope, decision guidelines, methods of motivations, performance criteria and a rational for organizaing.
  39. Purpose
    reason for the organization's existence. Without purpose the organization need not exist. This is determined by the creators.
  40. Mission
    the path that managers choose to achieve the purpose
  41. legitimacy
    the acceptance of the organization's activites by non-memebers of the organization
  42. plans
    written statements of actions and decisions that will lead the company to its goals or mission
  43. long range planning
    10 yrs
  44. intermediate planning
    2-9 yrs.
  45. short-term planning
    1 yr. or less
  46. external problems
    • human resource planning
    • capital shortage
  47. human resource planning
    developing a comprehensive strategy for meeting future human resource needs for qualified employees to perform necessary activities
  48. capital shortages
    the lack of avalible money
  49. Govermental regulations:
  50. D & Bradstresst-business failure
    • economic factors 45%
    • finance causes 37.2%
    • experience causes 10.5%
    • neglect causes 3.12%
Card Set
Sm Bus Mng exam 3
Sm Bus Mng Exam 3