Study Guide-Exam 1

Business Core Foundations with Pincus at University of Arkansas - Fayetteville

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By: Elaine Lee
Created: 2011-09-16
Size: 57 flashcards
Views: 58

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Six Common Types of Stakeholders

Owners, Creditors, Suppliers, Society, Customers, Employees

Creditors

Provide loans to the company

Creditors

Expect to receive the agreed upon interest payments

Creditors

Expect a repayment of the loan principals

Owners/ Stockholders

Invest their money into the firm

Owners/ Stockholders

Expect a return of their investment

Employees

Responsible for running and managing the business

Employees

Expect to receive wages/ salaries and other agreed upon benefits such as health care and pension benefits

Suppliers

Provide materials, goods, and services needed by a business.

Suppliers

Expect to be paid for the good and services.

Employees

Responsible for running and managing the business.

Employees

Expect to receive wages/salaries and other agreed upon benefits (such as health care and pension benefits)

Customers

Buy the products and services

Customers

Given products and services by businesses.

Society

Final stakeholders of a business

Society

Provides resources such as: trained labor supply, infrastructure, laws, and regulations.

Society

Expects jobs for its citizens, as well as tax revenues.

Stakeholders

Makes contributions and expects certain things in return

Profit Maximization

The most traditionally stated goal of many businesses.

Return on Investments (ROI)

Used by a firm to enhance the desire of investments to own their company's stock.

Return on Assets (ROA)

Desirable if wanting to exchange the efficient use of resources.

Return on Sales (ROS)

May be chosen to get the most out of the firms making efforts.

Market Share

A company may wish to maximize it's growth and increase "This" to become a dominant influence in their industry.

Earnings Per Share (EPS)

Encourages potential investors by having a continual increase and proven desirable.

High Quality Producer

A way that a firm may want to establish their reputation to maximize profits.

Lowest Cost Provider

A way to achieve profit goals.

Important Considerations

Longevity, Preservation of the entering.

Business Processes

The implementation of a series that creates goods and services.

Functional Departments

How businesses were traditionally organized.

Functional Departments

Marketing, production, logistics, accounting.

Marketing Manager

Worries about maximizing sales

Production Manager

Focuses on making products with minimum costs.

Marketing

Forwards the order to Production

Production

Responsible for meeting the specifications agreed upon between the customer and the Marketing Department.

Handles Delivery

Logistics Department

Accounting

Takes care of billing and collections

Marketing Job

Maximize sales

Purpose of the BP handout

Overview of the common business proccesses

Purpose of the PB handout

Communicate the underlying complexity of business.

Business Process

A series of activities that accomplish a business objective.

Financing business process

Provides the capital resources an organization needs to fund its activities.

Specific Inputs that an organization needs to create the goods and services.

Capital equipment, human capital, materials

Capital Expenditures Business Process

Stands for the activities involved in acquiring and maintaining capital resources such as land, buildings, and equipment.

Human Resources Business Process

Represents the activities that provide the human labor and expertise that an organization needs to function efficiently and effectively.

Purchasing Business Process

Represents the activities to acquire and pay for the needed raw materials, parts, products, and supplies.

Conversion Process

Represents the activities that convert the acquired resources into goods and services.

Sales/Collection Business Process

Represents the activities involved in selling and delivering goods and services to customers, as well as collecting payment.

Mission

Formal description of an organization's goals.

Mission Statement

Describes a business organization in terms of goods, markets, services, and client needs.

Mission Statement

Identification of an organization's strategy for profitability, growth, market share, and building competitive advantage.

Strategy

Positions resources and building relationships in a unique way.