INTRO TO BUSINESS

CHAPTER 1: Exploring the World of Business and Economics

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economics-flash-cards/
1. Business: The organized effort of individuals to produce and sell, for
a profit, the goods and services that satisfy society's needs.
Its four resources: human, material, informational, financial resources

2. The four basic economic questions:

- What goods and services will be produced?

- How will they be produced?

- For whom will they be produced?

- Who owns and controls the major factors of production?

3. Clarify different types of economics systems:
- Capitalism
- Socialism
- Communism
4. What is GDP: The total value of all goods and services produced by
all people within the boundaries of a country during a one-year
period.
- Why is it important: đo lường mức sống ?? :D ??

5. A typical business cycles’ phases: Peak, Recession, Trough,

Recovery (Depression larger decline than Recession)

6. Identify and compare the four forms of competition:

- Perfect:  there are many buyers and sellers of a product

- Monopolistic:  there are many buyers along with a relatively larger

number of sellers

- Oligopoly: there are few sellers

- Monopoly: only one seller

 7. Explain how the equilibrium, or market, price of a product is
determined.

CHAPTER 2: Being Ethical and Socially Responsible

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flash-cards/

1. Ethics: The study of right and wrong and of the morality of the
choices individuals make
Businessethics definitions: The application of moral standards to
business situations
2. Factors affecting ethical behaviours: Individual factors, social factors,
opportunity
3. Economic model: The view that society will benefit most when
business is left alone to produce and market profitable products that
society needs
Socioeconomic model: The concept that business should emphasize
not only profits but also the impact of its decisions on society

CHAPTER 3: Exploring the Business Environment

1. The organization’s environments:

- External Environment: general environment & task environment
- Internal Environment
2. How do they affect the organization?
3. Porter’s five forces:
- Rivalry among existing competitors
- Threat of subtitude products
- Power of customers
- Threat of new entrants
- Power of suppliers

CHAPTER 4: Choosing a Form of Business Ownership

1. Type of business ownership: Sole Proprietorship, Partnership,

Corporations
 2. Disadvantage and advantages of each form of ownership:

Advantages Disadvantages
Sole - Easy of start-up and
Proprietorship closure
- pride of ownership
- retention of all profits
- flexibility of being
your own boss
- no special taxes
Partnership - Ease of start-up
- availability of capital
and credit
- personal interest
- combined business
skills and knowledge
- retention of profits
- no special taxes
Corporations - Limited liability
- ease of raising capital
- ease of transfer of
ownership
- perpetual life
- specialized
management
- Unlimited liability
- lack of continuity
- lack of money
(financing)
- limited management
skills
- difficulty in hiring
employees
- Unlimited liability
- management
disagreements
- lack of continuity
- frozen investment
- Difficulty and
expense of formation
- government
regulation and
increased paperwork
- conflict within the
corporation
- double taxation
- lack of secrecy

3. Be able to analyze, advise choose what form of ownership base on

certain scenario

CHAPTER 6: Understanding the Management Process

1. What is management: the process of coordinating people and other

resources to achieve the goals of an organization
Basic management functions:
Planning -> Organizing -> Leading & motivating -> Control
2. SWOT analysis: Strengths, Weaknesses, Opportunies, Threats
 3. - Strategic plan: an organization's broadest plan, developed as a
guide for major policy setting and decision making
- Tactical plan: a smaller scale plan developed to implement a
strategy
- Operational plan: a type of plan designed to implement tactical
plans
- Ontingency plan
4. What skills should a manager possess in order to be successful:
analytic skills, communication skills, conceptual skills, interpersonal
skills, technical skills.
5. Styles of leadership: leadership style in which all members of a team
are involved in identifying essential goals and developing strategies
to reach those goals
6. Steps of decision making process

CHAPTER 9: Attracting and Retaining the Best Employees

1. Understand nature and process of HRM: all activities involved in

acquiring, maintaining, and developing an organization's human
resources
2. Understand the concept and basic strategies used to attract and
remaining employees in HRM: Employee relations, Compensation,
Benefits

CHAPTER 10: Motivating and Satisfying Employees and Teams

1. Understand all motivation theory to be able set up motivate strategy

to maintain employees:
- motivation-hygiene theory: idea that satisfaction and
dissatisfaction are separate and distinct dimensions
- Theory X: concept of employee motivation generally consistent
with Taylor's scientific management; assumes employees dislike
work and will function only in highly controlled work environment
- Theory Y: Concept of employee motivation generally consistent
with idea of human relations movement; assumes responsibility
 and work toward organizational goals, and by doing so they also
achieve personal rewards
- Theory Z: belief that some middle ground between type A and type
J practices is best for American business
- reinforcement theory: theory of motivation based on premise that
rewarded behavior is likely to be repeated, whereas punished
behavior is less likely to recur
- equity theory: theory of motivation based on premise that people
are motivated to obtain and preserve equitable treatment for
themselves
- expectancy theory: model of motivation based on assumption that
motivation depends on how much we want something and on how
likely we think we are to get it
- goal-setting theory: theory of motivation suggesting that
employees are motivated to achieve goals that they and their
managers establish together
2. Be able to suggest strategies which is not only interesting but also
feasible to motivate employees

CHAPTER 12: Building Customer Relationships Through Effective

Marketing

1. Market: The process of planning and executing the conception,

pricing, promotion, and distribution of ideas, goods, and services.
Market segment: The individuals in a market who share common
characteristics.
Market Segmentation: the process of dividing a market into segments
and directing a marketing mix at a particular segment or segments
rather than at the total market
Marketing mix: a combination of product, price distribution, and
promotion developed to satisfy a particular target market
Marketing plan: a written document that specifies an organization's
resources, objectives, strategy and implementation and control efforts
to be used in marketing a specific product or product group.
2. The forces in the marketing environment that affect an organisation’s
marketing decisions:
 - Sociocultural forces: influences in a society and its culture that
result in changes in attitudes, beliefs, norms, customs, and
lifestyles
- Political forces: influences that arise through the actions of political
figures
- Competitive forces: the actions of competitors, who are in the
process of implementing their own marketing plans
- Legal and regulatory forces: laws that protect consumers and
competition and government regulations that affect marketing
- Technological forces: technological changes that can create new
marketing opportunities or cause products to become obsolete
rapidly
3. Sources of information: primary and secondary information.
4. How is a marketing-oriented firm different from a production-oriented
firm or a sales-oriented firm?

CHAPTER 17:Using Management and Accounting Information

1. Information and risk relationship

2. Difference between accounting data and accounting information?
Give example.
- Data: Numerical or verbal descriptions that usually result from
some sort of measurement.
- Information: Data presented in a form that is useful for a specific
purpose.
3. Management of information system (MIS)
4. Accounting equation and balance sheet components
5. Statement of cash flows components
6. Income statement components
7. Financial ratios

CHAPTER 18: Understanding Money, Banking, and Credit

1. Money definition
- Functions of money: medium of exchange & measure of value
 - Characteristics of money: divisibility, portability, stability, durability,
difficulty of counterfeiting
2. Money supply, Mo, M1, M2, ...:
- M1: currency, demand deposits & travel checks
- M2: M1 plus savings accounts (những phần khó chuyển sang tiền
mặt)
3. How central bank acts to maintain healthy economy
4. Monetary policy and fiscal policy

CHAPTER 19: Mastering Financial Management

1. Financial management definition:all of the activities concerned with

obtaining money and using it effectively
Roles of financial managers?
2. Differences between short-term financing and long-term financing:
- Short-term financing: money that will be used for one year or less
- Long-term financing: money that will be used for longer than one
year
3. Four main sources of fundingand their advantages