CCT224 - Performance Assessment (DEM)

Chapter 2: Economy, Money, and Banking  What is this thing called economy? Economy  The sum total of all the economic activity within a given  Economics The study of how a society uses its scarce resources to produce and distribute goods and services  Microeconomics  The study of how consumers, businesses and industries collectively determine the number of goods and services demanded and supplied at different prices  Macroeconomics  The study of “big picture” issues in an economy, including com

Chapter 4: Business Ethics and Corporate Social Responsibility Ethics in contemporary business  Ethics  The rules or standards governing the conduct of a person or group  Do we need to question our existing standards? What promotes unethical behaviour?  Facebooks’s business model is based on monetizing mental illness, polarization, aggression and disinformation  Facebook failed to act on internal research showing that its Instagram app was damaging teenager’s mental health  “Many of the claims

Chapter 5: forms of ownership  Sole proprietorships  Sole proprietorship A business owned by a single person  Unlimited liability  A legal condition under which any damages or debts incurred by a business is the owner’s responsibility  Advantages of sole proprietorships Simplicity  Single-layer of taxation  Privacy  flexibility and control  Fewer limitations on personal income  Personal satisfaction  Disadvantages of a sole proprietorship  Financial liability  Demands on the owner  Limited ma

Chapter 6: entrepreneurship and small-business ownership  The big world of small business  Small business  A company that is independently owned and operated is not dominant in its field and employs fewer than 500 people (although this number varies by industry)  Economic roles of small business  They provide jobs  They introduce new products  They meet the needs of larger organizations  They inject a considerable amount of money into the economy  They take risks that larger companies sometime

Chapter 7: Management roles, functions and skills  Management  Management  The roles of management  Managerial roles  Behavioural patterns and activities involves in carrying out the functions of management; includes interpersonal, informational and decision-making roles  Interpersonal roles  Providing leadership to employees, acting as a liaison between groups, networking and fostering relationships Informational roles  Gathering information from inside and outside the organization, sharing

Chapter 8: Organization and Teamwork  Designing an effective organizational structure  Organization structure  A framework that enables managers to divide responsibilities, ensure employees accountability, and distribute the decision-making authority  Organization chart  A diagram that shows how employees and tasks are grouped and where the lines of communication and authority flow  (Exhibit 8.1)  Identifying core competencies  Core competencies  Activities that a company considers central an

Chapter 9: Production systems  The system view of business  System  An interconnected and coordinated set of elements and processes that converts inputs to desired outputs  Managing systems for peak performance  Help Everyone see the big picture  Understand how individual systems really work and how they interact  Understand problems before you try to fix them  Understand the potential impact of solutions before you implement them  Don’t just move problems around-solve them  Understand how feed

Chapter 13: Product management and pricing strategies  Characteristics of products  13.1 Identify the main types of consumer and organizational products and describe the four stages in the life cycle of a product  Types of products Consumer products  Products that are primarily sold to individuals for personal consumption are known as consumer products  Convenience products - everyday goods and services that people buy frequently, usually without much conscious planning Shopping products - are

Chapter 15: Financial information and accounting concepts  Fundamental accounting concepts  Assets (OWN) Anything of value owned or leased by a business  Liabilities (OWE) Claims against a firm’s assets by creditors  Owner’s equity (OWNERSHIP) The portion of a company’s assets that belong to the owners after obligations to all creditors have been met The account equation  The basic accounting equation, stating that assets equal liabilities plus owners’ equity  Assets - liabilities = owners’ eq

Chapter 16: financial management and financial markets  The role of financial management  Financial management Planning for a firm’s money needs and managing the allocation and spending funds  Risk and return trade-off  The balance of potential risks against potential rewards Financial management: 3 fundamental concepts  Balancing short term and long term demands  Must have ready cash to pay salaries, bills, and taxes Needs a financial cushion to ride out rough times  May need money for acquis