Midterm Guide.docx

6 Pages
Unlock Document

Business Administration
BUS 100
Kim Milnes

Chapter 1 1) Factors of Production  Capital, labour, entrepreneurs, information resources, natural resources  All most important/most important is least in supply 2) Types of Economic Systems  Communism – gov‟t owns factors of production, and makes all decisions, government owns all industries  Socialism – gov‟t owns/operates critical industries, individuals own non-critical businesses  Market – distribution of resources based on supply/demand, ownership open to those who want it, freedom of choice  Mixed – (Canada), combination of freedom/government intervention 3) Elements of Private Enterprise  Private Property – right to own, buy, use, sell and item  Freedom of Choice – the right to choose what to buy/sell, including one‟s labour  Profits – anticipated profits affect what is produced  Competition – for resources and customers…motivates efficiency 4) Competition  Pure Competition – lots of sellers, same product, lots of buyers, no individual price control  Monopolistic Competition – range of possible sellers, possibly unique but similar, limited price control  Oligopoly – few sellers, high barriers to entry, similar products, “market price”  Monopoly – one seller, unique product, price control (sometimes natural monopoly) 5) Government Influence  Customer (ex. Building contracts)  Regulator (environmental requirements)  Competitor (ICBC is crown corp.)  Taxation Agent (income tax, sales tax, liquor tax)  Provider of Incentives (programs to stimulate economy)  Provider of Essential Services (road, health, police, postal) Chapter 2 1) Remote Environment  Social-cultural environment (people‟s tastes, opinion on big/small businesses….)  Political-legal environment (domestic government regulations)  Technological environment (what tech. is available, how is it changing, who develops it)  Economic environment (where in economic cycle, are people spending, and on what)  Business environment  International environment (relationships between countries, global regulations) 2) Economic Environment  GDP = gross domestic product, total product made in Canada  Inflation is when gov‟t injects more money into system than system produces, causes Canadians to have more money, but prices increase by same amount  Real GDP = GDP adjusted for inflation  GNP = gross national product, total product produced under Canadian ownership, regardless of location  Unemployment is the % of people without work who are actively looking for work  Productivity is the how much of a good can be produced with set amount of resources… increase in productivity causes increase in standard of living  Exchange rate is the comparison of currencies value around the world  Fiscal policies = gov‟t set on how money is used  Monetary policies = set by Bank of Canada on inflation rate depending on economy (poor economic situation = low inflation rate = cheap to lend/invest = easy monetary policy) 3) Porter‟s Five Forces  Rivalry among competitors – intense competition, elaborate advertising, price wars  Threat of new entrants – can cause massive change…if easy for new entrants, comp. is high  Suppliers – how many suppliers? Fewer suppliers means suppliers hold more power  Buyers – how many buyers? Fewer buyers means buyers hold more power  Substitutes – practical substitute product? More substitutes = more competitive enviro. Chapter 3 1) Managerial Ethics  Managerial ethics are the standard of behaviours that guides managers in work (hiring, firing, promotion, assigning work, )  Must behave ethically7 towards employees (listed above)  Towards employer – not claiming false expenses, no conflict of interest, etc  Towards other agents – consumers, ex. Fair pricing  Assessing ethical behaviour….1: Gather relevant facts  2: determine most appropriate moral values  Make ethical judgement 2) Social Responsibility  idea that business should balance commitments to both individuals and groups that are directly affected by the organization  Stakeholders want as much money as possible, but to what extent….?  Responsible to: environment, consumers (truth in advertising, reasonable prices, etc.), employees, investors  Businesses either Obstructionists, Defensive, Accommodative, Proactive Chapter 4  Small business = <100 employees, independently owned/operated, does not dominate market  Entrepreneur is business person who accepts risks/opportunities of a new business o Takes imitative, independent, good problem solver o Identify opportunity  Access resources  New venture  growth, stability, decline, close 1) Parts of Entrepreneurship o Identify Opportunity  “think outside the box” and no “blocking” of ideas  Idea must: create/add value for consumer, provide competitive advantage, marketable and financially viable, low exit cost o Accessing Resources  Equity (personal savings, love money, private investors, venture capitalists)  Debt financing (financial institutions, suppliers)  Also use grants, incubators, etc. to allow for growth o Building the Right team  Diverse skills, access to different resources, track record of success o The “Fit”  Is it the right entrepreneur  Can the resources available fit the project  Can the entrepreneur access the resources 2) 4 Ways to Start a Businesses  Buying existing business o Pros: safer, have customers, suppliers, reputation, location, „the system is in place‟ o Cons: cost possibly, reputation, location, need to win over staff  Taking over family business o Pros: Good reputation, good relationships w/ customers, financial resources o Cons: family disagreements over control, nepotism issues, poor previous handling  Buying a franchise o Pros: more resources, reputation, distribution line, expert advice, higher chance of success o Cons: less creativity, extra fees (before profit), strict regulations, lack of control  Starting from scratch o Pros: Complete control o Cons: no guarantee of success, massive time commitment, no „life,‟ harder to get loan 3) Success and Failure  Success: hard work, drive determination; market demand; managerial competence; luck  Failure: poor management, neglect, weak control systems, inefficient capital 4) Three Legal Forms of Businesses  Sole proprietorship o Pros: Complete control, all profits, simple legal setup, tax benefits o Cons: unlimited liability, no continuity at death, hard to borrow money  Partnership o Pros: ability to grow by adding money/talent, easier to borrow, simple legal set up o Cons: unlimited liability, harder to transfer ownership, disputes o General Partner = actively involved in managing, unlimited liability o Limited Partner = not
More Less

Related notes for BUS 100

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.