Overall business principles are used in both for-profit and non-profit institutions. This course provides an overview of these key principles. As you progress through your business education classes, you will discover that there are whole semester courses devoted to some of the topics that we will cover in just one week.

For some of you, this course may be one of the first that you have taken at the college level. Your future academic success may be influenced by how well you perform in this class. Nothing worth having is easy to acquire. The same is true with college. Read, come to class, take notes, and participate. If you do all of these things, you will discover that college and this class are not difficult, just rigorous.

Upon completion of the course the student should be able to:

• Explain the different types of business structures and the benefits of each type
• Define at least three theories of motivation and explain their application
• Understand the basic concepts of interviewing, hiring, training, and employee discipline
• Understand the basics of stock markets and investments
• Discuss why unions exist, how they are elected, and relevant Federal laws regulating union activities.
• Read & understand a basic income statement
• Apply the 4 Ps of marketing to any business situation
• Know the relevant US laws concerning hiring, discrimination and disabilities
• Write a personal resume in chronological format.

GENERAL COURSE INFORMATION Management 101 : Introduction to Business: Ticket #0144 Class Time: 7 – 10:10 PM, Tuesday, Room B105 Dates: February 3 – May 26, 2009 Textbook: Understanding Business, 8th Ed.  ISBN 978-0-07-310597-0 $47 - $160 : www.bigwords.com Bookstore Price: $155 new / $116 used     Bookstore also rents the book

COURSE POINTS & GRADING SCALE

2 Exams @ 400 each = 800 points

4 Quizzes @ 50 each = 200 points

Total Possible = 1,100

Reading, lecture & exam schedule for Tuesday night section

 The course study guide follows.  This is for both sections of the class. 

MANAGEMENT 101

RIO HONDO COLLEGE

JAMES FERRELL, INSTRUCTOR

COURSE STUDY GUIDE

These study questions are listed in the same order that the chapters are arranged in your course syllabus. These questions are meant to be a guide to help you understand they types of questions that you should be able to answer after reading the assigned materials and reviewing your lecture notes.

These are in no way the only terms or concepts that you should be able to answer. However, if you use this as a guide, you will find that you will be better prepared for both the Mid-Term and Final examinations.

If you have any questions about any of these items, please talk to me – AFTER you have read the text and reviewed your lecture notes.

Remember, this is a study guide, not a guarantee.

CHPT 1 : COURSE INTRODUCTION

• What is the formula for profit?
• What are the four objectives of business?
• Explain the concept of stakeholders.
• How do non-profit organizations stay in business?
• What is the largest corporation in the world?
• Explain the relationship between risk and reward.
• What are the characteristics of an entrepreneur?
• List the five factors of production and explain why these are important.
• What are some of the reasons that people like to purchase things on the Internet?
• Explain the concept of demographics.

CHPTS. 2 & 3 ECONOMICS & GLOBALIZATION

• What is the difference between macroeconomics and microeconomics?
• Explain the concept of price elasticity.
• What is a demand curve?
• Explain the concept of price inelasticity.
• What are unsought products?
• What are the factors that impact pricing elasticity?
• What is the consumer price index, how is it measured, and what impact does it have on businesses?
• Explain the economic systems: capitalism, socialism, communism, & planned economy.
• Who is Adam Smith and what was his concept?
• What are some of the governmental controls that are placed on capitalism?
• Explain the following types of competition: monopoly, oligopoly, monopolistic competition & pure competition.
• What is a business cycle?
• Give examples of a domestic business, and international business & a multi-national business.
• What is gross national product and why is this concept important?
• Explain what a trade surplus and a trade deficit are.
• Which country is the largest trading partner of the United States?
• Explain what a tariff is and why it is used.
• Give an example of a non-tariff barrier.
• What is an import quota?
• Give an example of voluntary export restraints.
• What is dumping?
• What does the World Trade Organization do?
• What did the World Trade Organization replace?
• What is the European Community and what is its currency?
• What is the Big Mac Index.

CHPT 5 & 6 FORMS OF BUSINESS ORGANIZATION

• To be classified as a small-business how many employees must a company have?
• What percent of the US workforce works for small businesses?
• What are the advantages of small businesses?
• What are the disadvantages of small businesses?
• During the first 10 years of operation what percent of small businesses fail?
• Explain the concept of sole proprietorship including risk/reward, liability & taxes.
• Explain a general partnership including risk/reward, liability & taxes.
• Explain a limited partnership including risk/reward, liability & taxes.
• What is the difference between a general partner and a limited partner?
• Explain what a corporation is including risk/reward, liability & taxes?
• How are owners of corporations taxed twice?
• What is an S-corporation?
• Why do companies merge?
• What are economies of scale?
• Give an example of a horizontal merger.
• Give an example of a vertical merger.
• Explain the concept of core competency.
• Explain why mergers typically fail.
• What is a franchise?
• What is the advantage of purchasing a franchise?
• Explain all the costs associated with purchasing & operating a franchise.
• What do these Internet abbreviations mean: B2B, B2C & C2C
  • Give examples of each
• What is the difference between debt and equity funding?
• Give sources of debt funding.
• What is an initial public offering? Is this debt or equity funding?
• What is a venture capitalist?
• What is an angel?

CHAPTER 8 ORGANIZATION STRUCTURE

• What is the rational economic nature of man?
• What is the one best way to do all things?
  • How do these 2 concepts go together?
• What are time and motion studies?
• What did Max Weber mean when he used the word bureaucracy?
• Explain how turnover can be good for a company or bad for a company.
• What is work ethic?  Give an example.
• What do behaviorists believe?
• What are the 3 business lessons learned from the Hawthorne Electric Study?
• What is the quantitative approach to management?
• Explain the concept of re-engineering.
• Describe Theory X & Theory Y.
• Explain the behaviors that would indicate each management style:
  • Exploitive autocrat
  • Benevolent autocrat
  • Consultative democratic
  • Participative democratic
• What is the chain of command in an organization?
• Explain the concept of span of control
• What are staff versus line positions in a company?
• What is matrix management?

CHAPTER 10 MOTIVATION

• How do we typically determine if a worker is motivated?
• What are the 5 levels of Maslow’s hierarchy? How do individuals move up & down the hierarchy?
• What, according to Maslow, motivates individuals?
• Explain the Expectancy Theory of motivation. How do you link performance & rewards according to this theory?
• Define the Equity Theory. Give an example of how this works in real life.
• What is the Reinforcement Theory? Does this theory work in today’s world? Give examples.
• Explain Herzberg’s 2-factor theory of motivation. Is this theory applicable to all individuals all of the time?  Why or why not?
• How does Herzberg’s theory relate to that of Maslow? Give examples.
• What is the McClelland 3-factory theory of motivation? Is it related to any of the other theories?
• Explain how you can use the McClelland theory at work.
• What is demotivation and how do we recognize it at work?
• Explain how the Hawthorn Electric Study was conducted and its conclusions.
• What were two of the motivational factors discovered from this study?
• Explain the theories X., Y. & Z.
• Explain the concept Management by Objectives.

CHAPTER 11 EMPLOYMENT LAWS

• What are protected classes of individuals; give examples?
• What is the difference between affirmative action and reverse discrimination?  Give examples of each.
• What are the categories protected from discrimination in the 1964 Civil Right Act?
• What aspect of discrimination is covered?
• Explain all of the categories organizations that are covered by the Civil Rights Act, noting the 2 categories that are exempt.
• What are the requirements for ‘equal work & equal pay’; how can men & women doing exactly the same job receive different levels of pay?
• Explain pregnancy discrimination and the right women now have via the Pregnancy Discrimination Act of 1978.
• Briefly explain the Americans with Disabilities Act; what conditions are considered disabilities and which are not.
• Explain what a reasonable accommodation is and give examples.
• How does the Americans with Disabilities Act impact the way we ask pre-employment interview questions?
• Why are the ages 18, 40 & 70 important?
• What are the 2 general situations that define sexual harassment?
• What are the gender relationships and sexual harassment?
• What should an organization do when a complaint of sexual harassment has been made?
• What are the ways an organization can minimize its risk of aiding & abetting sexual harassment?
• Explain what an I-9 is.  What is the employer’s responsibility and liability?

CHAPTER 11 : INTERVIEWING / HIRING /PERFORMANCE REVIEWS

• Approximately what percent of workers are actively looking for a new job?
• Explain how a trend analysis is used to predict future employee levels.
• Explain how a ratio analysis is used to predict future employee levels.
• Explain the concept of Employment Drivers.
• What is environmental scanning and how can it be used to forecast future employment levels?
• What are the four sections of a job description?
• What is the approximate cost to an organization to hire someone new?
• What are the four factors that influence applicant decisions?
• Explain what contingent personnel are.
• What are the pros & cons of internal recruitment?
• What is nepotism?
• What are the strengths and weaknesses of using help wanted advertising?
• What are the strengths & weaknesses of using public employment agencies?
• What are the strengths and weaknesses of using private employment agencies?
• What are executive search firms and what is a colloquial name used to describe them?
• What are the advantages and disadvantages of campus recruiting?
• Explain the main reasons that businesses give performance reviews.
• What is the theoretical relationship between performance reviews and job descriptions; why is this theoretical and not employed in the business world?
• What is the difference between intrinsic & extrinsic rewards?
• Explain these types of rewards within the context of Maslow’s & Herzberg’s theories of motivation.
• What are the main types of performance review in terms of who administers the review?
• Give examples of the performance evaluation criterion: traits, behaviors and results.
• Explain how the graphical rating scale method of performance reviews works.
  • What are the pluses and minuses of this approach to reviewing performance?
• Explain the BARS & Paired ranking system methods of performance measurement.
  • How are they used in business
• What is the critical incident method of evaluation; how does this impact bosses & subordinates?
• What are the main reasons that performance reviews can come into conflict with case law?
• As a boss, what are the actions one should take to minimize the risk of losing a lawsuit related to performance reviews?
• Explain progressive disciple, how it works and when it can cause legal problems.

CHAPTER 12 UNIONS

• Why do unions exist?
• How large is union membership in both the private & public sectors?
• What is the trend for union membership; is it increasing or decreasing; why?
• What is the AFL-CIO; why is it important?
• What is the relationship between the Teamster’s union & the AFL-CIO?
• Why does the Teamster’s union carry so much clout?
• What are the key components of the Wagner Act & the Taft Hartley Act?
• Why these laws are still important today?
• What is a bargaining unit? What is its minimum size? What common factor must be in place?
• What are the restraints on management when a union is trying to get voted in?
• Explain how a union is selected to represent workers.
• What is the main difference between unions in the public & private sectors?
• If a contract between a union & management cannot be successfully negotiated what are the rights and tools of a union and management?
• What is the difference between arbitration and mediation?
  • When & how would they be used?
• What is the difference between a shop steward & a business agent?
  • Who do they work for?
  • What are their roles?
• What is a grievance? When will it occur? What is the process to resolve grievances?

CHAPTER 13 MARKETING

• What is the difference between utilitarian & hedonic buying?
• What are the 3 characteristics that define a market?
• Describe the differences between these factors in purchasing decisions:
  • Initiator
  • Influencer
  • Decider
  • Buyer
  • User
• What are the 4 Ps of marketing?
• What is the difference between a brand & a concept sale?
• Define these market research terms:
  • Primary research
  • Secondary research
  • Focus group
  • Data mining
• What are the basic differences between a transaction & a relationship sale?
• Describe & give examples of affinity marketing programs.
• What is database marketing & how do retailers gather info for this technique?
• What is green marketing? Give examples.
• Draw the BCG Matrix labeling all 4 quadrants.
• How does each category influence pricing decisions for these products?
• What is market segmentation.  Why is it important?  Give examples.
• What are the 3 characteristics of a market segment?
• What is a MSA & how is it used in market segmentation?
• What are some of the ways you can segment the business market?
• Give examples of demographic segmentation & explain how this is used.
• What is psychographic market segmentation?
• What is Pareto’s Law & how can it be used to segment your customers?
• What is niche marketing?
• Give an example of differentiated products.
• Why is brand loyalty important?
• What is the cohort effect & how can it be used in market segmentation?

CHPT. 14 : PRICING

• What is the difference between price and cost?
• Explain the concept of price elasticity & give examples.
• What are examples of price inelastic products or services.
• What is a substitute product & how does its’ availability impact pricing?
• Explain each of these pricing strategies
  • Profit maximization
  • Premium pricing
  • Skimming
  • Cost plus
  • Market share maximization
  • Meeting competitive threats
• Explain the concept of product life cycle & the pricing implications.
• What is the relationship between product differentiation & pricing?
• Give examples of unsought products & their pricing implications.
• What are product logos & why are they important?
• What is a product life cycle?
• What is brand equity?
• What is a trademark?
• Give an example of non-price competition.

CHPT, 16 : PROMOTION

• What does AIDA stand for when evaluating a promotional message?
• What is a call to action?
• What are the main goals of promotion?
• What is sponsorship promotion?
• What is a point-of-purchase display?
• Are coupons used for brand or concept promotions?
• What is the value of a product demonstration as a type of promotion?
• What is public relations & why do companies include PR in their promotions?
• Explain the pros & cons of each of these types of direct marketing
  • mail
  • telemarketing
  • e-mail
  • infomercials sampling
  • viral marketing
• Explain what push: pull marketing is & how does promotion play into this strategy?
• What is the relationship between Sweeps in TV & ad rates?
• What is an infomercial?
• Explain blogging and podcasting.

CHPT. 17 & 18 : FINANCIAL INFORMATION

• What is the difference between an income statement & a balance sheet?
• How do you calculate gross margin and gross margin percent?
• What are the 2 factors that influence gross margin?
• What are the 3 main categories of operating expenses most companies use?
• Which of these categories includes interest expense?
• How do you calculate net income of a company?
• What are the main categories found on the asset section of a balance sheet?
• What are the 2 main categories found on the liabilities section of a balance sheet?
• How do you calculate shareholders’ equity?
• What does the current ratio tell you about a company?
• How do you calculate the current ratio?
• Explain the concept of return on equity?
• What are the elements included in an annual business budget or forecast?
• What are capital expenditures?
• What is a cash flow forecast & why would a business need one?
• What is the difference between a short-term & long-term forecast?
• Explain each of the following ways a company can raise money.
  • Debt
  • Equity
  • Retained earnings
• Explain each of these debt instruments
  • Unsecured loan
  • Secured lone
  • Line of credit
  • Revolving credit cline
• What is factoring & why would a company use it?
• Explain the concept of cost of capital.

• What is the difference between moral, legal & ethical behavior in business?
• What is whistle blowing? Is it ethical, legal or moral?
• Describe plagiarism & why it is unethical.
• What is a copyright & how long does one last?
• What are the potential fines for violating a copyright according to U.S. law?
• What is green marketing?
• Give examples of corporate social responsibility.

CHPT. 19 FINANCIAL MARKETS

• Why do companies go public?
• What is an IPO?
• Why do people buy stock?
• What are the advantages to a company of selling equity?
• What is the difference between preferred & common stock?
• What is the SEC?
• Explain how to calculate the market capitalization of a publicly traded company.
• How do you calculate a P:E ratio?
• What does a P:E ratio tell you about the relative price of a company’s stock?
• What is a prospectus?
• What is the difference between common stock and preferred stock?
• Name the three major US stock exchanges.
• What is a broker?
• What is a mutual fund?
• What is buying stock on margin?
• What are stock options?
• Explain the concept of selling short.