17764078
Description
Mind Map by Faith Stehr, updated more than 1 year ago
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Created by Faith Stehr
over 5 years ago
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Midterm #1
- Business: any activity
that provides good and
services to consumers
for the purpose of
making a profit.
- External forces on Business
- Economy
- Systems: Planned: communism, socialism,
capitalism: free market
- World Economic Goals
- Growth- GDP
- HIgh Employment
- Price stability- CPI
- Price stability- CPI
- HIgh Employment
- Growth- GDP
- Systems: Planned: communism, socialism,
capitalism: free market
- Government
- Monetary Policy
- federal reserve
- federal reserve
- Fiscal Policy
- taxing and spending
- taxing and spending
- Monetary Policy
- consumer trends
- the pressure to be a good
corporate citizen
- Social Responsibility and Ethics: take care
of ALL stakeholders
- Employee attitudes: uneasy about the
work they do, object to how they are
treated, question correctness of
management's directives
- Rationalizations: my behavior isn't
really illegal; action is in everyone's
best interests; everyone does it
- Organizational Behavior:
shared values, top
management held
accountable, leaders
should be role models,
code of conduct
- Employee attitudes: uneasy about the
work they do, object to how they are
treated, question correctness of
management's directives
- Social Responsibility and Ethics: take care
of ALL stakeholders
- Economy
- External forces on Business
- Goods are tangible;
services are intangible
and cannot be returned
- Competition
- Perfect Competition:
many sellers,
standardized
product, many
consumers
- monopolistic
competition: many
sellers, differentiated
product, many
consumers
- Oligopoly: few sellers,
similar product, many
consumers
- Monopoly: very few
sellers to all customers
- Perfect Competition:
many sellers,
standardized
product, many
consumers
- Foreign Affairs
- Countries trade to be most effecient,
it allows for countries to specialize in
what they have the comparative
advantage in as oposed to everything
they need
- Balance of Trade:
value of imports -
value of exports
- Surplus: sells more than buys
- Deficit: buys more than sells
- Deficit: buys more than sells
- Surplus: sells more than buys
- Blance of Payments: amount of money
coming in- amount of money going out;
over time period
- Balance of Trade:
value of imports -
value of exports
- In-Franchise Agreement:
company/franchiser grants
foreign company the rights to
use its brand name and sell its
products
- Outsourcing aka Contract Manufacturing: US
company contracts with a local company in a
foreign country to manufacture one of its products
- US company retains control of product
design and development and puts its
own label on it
- US company retains control of product
design and development and puts its
own label on it
- Foreign Direct Investment: the
formal establishment of business
operations (ex. factory or office)
on foreign soil)
- Multinational Corporation:
- Pros: better,
cheaper
products,
creates jobs,
raises the
standard of
living in
developing
countries,
increases
cross-cultural
understanding
- Cons: destroys
jobs and lowers
wages in home
country
workers,
traditional
lifestyle/values
weakened or
destroyed,
irreversible
damage to the
environment
- Pros: better,
cheaper
products,
creates jobs,
raises the
standard of
living in
developing
countries,
increases
cross-cultural
understanding
- Countries trade to be most effecient,
it allows for countries to specialize in
what they have the comparative
advantage in as oposed to everything
they need
- Forms of Business Ownership
- Consider: control? Profits?
liability? financial needs? set up?
continuance?
- Regular taxable corporations
- Regular C-corporation- double taxation
- Regular C-corporation- double taxation
- flow through entities
- sole
proprietorship
Partnership
S-Corp
LLC
- sole
proprietorship
Partnership
S-Corp
LLC
- Consider: control? Profits?
liability? financial needs? set up?
continuance?
- Entrepreneur: someone who identifies a business oportunity and assumes
the risl of creating and running a business to take advantage of it
- WHY? be your own boss; achieve
financial independence, creative
freedom, use own skills and
knowlege
- WHY? be your own boss; achieve
financial independence, creative
freedom, use own skills and
knowlege
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