Identify and describe the three sources of long-term financing for businesses
Debt financing - raising money to meet long-term expenditures by borrowing from outside the company, usually takes form of long term loans or sale of corporate bonds
Equity financing - raising money to meet long-term expenditures by issuing common stock or retaining earnings
Hybrid financing - issuing preferred stock. of which combines features of corporate bonds and common stock
When are teams more susceptible to communication breakdowns?
- when team membership is dynamic - new members and a lack of knowledge sharing
- when tasks are changing - little shared understanding of how things work
- when team members work at a distance - few informal conversations
- when team composition is heterogeneous - made of those from different backgrounds
- when there is a clear hierarchy in the team - hinders upward communication
- when hands need to occur - quality infleunces performance
- when deviating from routine conditions - heightens stress and misunderstandings
list and define each component of the factors of production
- capital - funds required to start and operate a business
- entrepreneurs - people who accept opportunities and risks involved in creating and operating a business
- information - the knowledge and expertise of people who work in business
- labour - combined mental and physical capabilities of workers
- natural resources - physical resources used to operate a business (land, water, raw materials)
what is balance of trade
value of country’s exports and the value of its imports during specific time
what does it mean when country has a trade surplus
exports > imports
dark triad
Machiavellianism - see manipulation as effective and acceptable and have a cynical view of human nature
narcissism - sees themselves as superior and want others to reinforce this belief
psychopathy - lack of concern for others, high impulsivity and lack of remorse after harming other
responsibilities of a financial manager
- determining a firm’s long-term investments
- obtaining funds to pay for those investments
- conducting the firm’s everyday financial activities
- managing the risks that the firm takes
explain the differences among functional, project, and matrix structures
functional - authority is usually distributed among basic functions such as marketing and finance
project - company creates project teams to address specific problems or to complete specific projects
matrix - combination of divisional and functional structures; it imposes one type of structure on top of another
advantages of operating as a sole propietorship
easy and inexpensive to form, diverse skill, few legal requirements, profits go to owner, direct control, fewer government controls, taxation benefits, easy to dissolve
four stages of management process
- planning
- organizing
- leading
- controlling
characteristics of perfect competition
- large # of firms in market
- firms sell identical products
- buyers/sellers have good info about prices
- sources of supply
- easy to open new business or close existing one
job specialization
process of identifying the specific jobs that need to be done and designating the people who will perform them
four cooperative beliefs that consistently impact team effectiveness
- trust
- psychological safety
- collective efficacy
- cohesion
external environments
P olitical
E conomic
S ocial-cultural
T echnological
E nvironment (global)
L egal
four degrees of competition
1) perfect competition
2) monopolistic competition
3) oligopoly
4) monopoly
four phases of business cycle
peak, recession, trough and recovery
what is organization structure
specification of jobs to be done within a business and how those jobs relate to one another
set of managers involved in typical large organization
financial
HR
marketing
operations
information
