Definitions. Exercise 8

 DEFINITIONS.

Administration 

Definition of administration

Business administration basically means all the activities that are needed to keep a business. 

Business administrators are key to ensuring that the business adapts to external changes by implementing internal reorganisation.

Concepts of Administration 

1. Planning 

2. Organizing 

3. Commanding 

4. Coordination 

5. Control

Universal functions of administration 

It can be said that the administration is universal because it can be applied in all types of social organisms and in all existing political systems.  specificity, temporal unit, hierarchical unit, instrumental value, breadth of exercise,interdisciplinarity, flexibility.

Business 

Definition of Business 

A business is defined as an organization or enterprising entity engaged in commercial, industrial, or professional activities.

Business is either an occupation, profession, or trade, or is a commercial activity which involves providing goods or services in exchange for profits.

Profits in business are not necessarily money. It can be a benefit in any form which is acknowledged by a business entity involved in a business activity.

Concepts of Business. 

Debt

Debt is something, usually money, borrowed by one party from another. Debt is used by many corporations and individuals to make large purchases that they could not afford under normal circumstances. 

Business Structures

Many businesses organize themselves around some sort of hierarchy or bureaucracy, where positions in a company have established roles and responsibilities. The most common structures include sole proprietorships, partnerships, corporations, and limited liability companies (LLC), with sole proprietorships being the most prevalent.

Partnership

A partnership is a business relationship between two or more people who join to conduct business. Each partner contributes resources and money to the business and shares in the profits and losses of the business. The shared profits and losses are recorded on each partner's tax return. 

Corporation

A corporation is a legal entity that is separate and distinct from its owners

Shareholder

A shareholder, also referred to as a stockholder, is a person, company, or institution that owns at least one share of a company’s stock, which is known as equity

Common Stock

Common stock is a security that represents ownership in a corporation. Holders of common stock elect the board of directors and vote on corporate policies.

Business Plan

A business plan is a written document that describes in detail how a business, usually a startup, defines its objectives and how it is to go about achieving its goals. A business plan lays out a written roadmap for the firm from marketing, financial, and operational standpoints.

Objective of Business. 

Business objectives are something which a business organization wants to achieve or accomplish over a specified period of time. These may be to earn profit for its growth and development, to provide quality goods to its customers, to protect the environment etc. These are the objectives of business. In the following section let us classify the objectives of business.

Business objectives also need to be aimed at contributing to national goals and aspirations as well as towards international well-being. Thus, the objectives of business may be classified as:

• a. Economic Objectives

• b. Social Objectives

• c. Human Objectives

• d. National Objectives

• e. Global Objectives

Types or classification of business. (Define each in detail) 

• Primary: this sector is concerned with the raw extraction of materials or natural resources from the land.

• Secondary: this sector is focused on manufacturing, some examples can be car manufacturers, building companies and food production. 

• Tertiary: this sector is concerned with providing a service like cinemas, hairdressers, banks, etc.

• Quaternary: it involves those industries that provide information services such as ICT, computing, R&D, consulting. 

What does “form of business ownership” refer to? Provide definitions. 

It refers to the control over an enterprise, providing the power to dictate functions and operations. 

• Sole Proprietorship.

• Partnership.

• Company.

• Cooperative Society.

• State Enterprise.

Management 

Define management.       

Management’s primary function is to get people to work together for the attainment of an organization’s goals and objectives. Good management is the backbone of successful organizations.

 Functions of management. (Describe them in detail) 

Planning: When you think of planning in a management role, think about it as the process of choosing appropriate  goals and actions to pursue and then determining what strategies to use, what actions to take and deciding what resources are needed to achieve the goals.

Organizing: This process of establishing worker relationships allows workers to work together to archive their organizational gols. 

Leading: This function involves articulating a vision, energizing employees, inspiring and  motivating people using vision, influence, persuasion, and effective communication skills.  

Staffing: Recruiting and selecting employees for positions within the company (within teams and departments).

Controlling:  Evaluate how well you are achieving your goals, improving performance, and taking actions.  Put processes in place to help you establish standards, so you can measure, compare, and make decisions.

Important areas of knowledge for a business manager. Mentions as many as you know or find.

Economics

The financial and economic area is the main base that a person who wants to be a manager must have. In order to manage a company correctly, it is very important to distinguish the main concepts of macroeconomics, microeconomics, business strategy, resource allocation and investments.

Accounting

Learning about accounting is another branch that any businessman should know. The responsibility is yours in decision making, so you must know the economic and accounting status of the company you manage.

Human Resources

Regarding the labor area, the CEO must be responsible for the hiring of workers, as well as the management of payroll and social security.

New technologies

Similarly, technology is a field that is becoming more and more relevant every day. Therefore, it will be essential to know how to use tools to optimize the processes that are developed in the company. This is the case of e-commerce, social networks, the web, or mobile apps.

Marketing

When it comes to obtaining greater visibility in the market and in the sector, online and offline marketing plays a key role. Although a director does not have to be in charge of this part, since he can outsource it or hire a team for its development, he must know what it consists of and what the main tools are.

Legislation

On the other hand, learning about legislation is another important aspect to comply with the regulations established by law for the proper functioning of a company. For example, nowadays, being clear about the Data Protection Law, the rights of users and workers becomes an essential part in the management of any company.

Organization 

Provide a definition of organization. Be extensive.

An organization is an entity such as an institution, a company, society, business or association,  comprising one or more people and having a particular purpose like interest, hobbies, work.