STUDY GUIDE FOR THE EXAM ON
INTRODUCTION TO THE WORLD OF BUSINESS I.
(Fall 2015 – Updated on December 10, 2015)
List of Terms and Expressions I: General Introduction
ü business (definition, purpose)
ü classification of businesses
ü sectors of the economy (primary, secondary, tertiary and quaternary sectors)
ü private and public sectors
ü sole proprietorship (advantages, disadvantages)
ü partnership (advantages, disadvantages)
ü corporation (advantages, disadvantages)
ü limited/unlimited liability
ü general partnership
ü limited partnership
ü general/limited partners
ü legal personality
ü incorporation
ü private limited company
ü public limited company
ü memorandum of association, articles of association
ü stocks, shares
ü dividend
ü annual general meeting
ü board of directors
ü managing director, CEO, President
ü liquidation, winding up
ü double taxation
ü cooperatives
ü nonprofit organizations
ü franchise
ü offshore company
ü turnover
ü functions of businesses (5 main functions)
ü entrepreneurship
ü venture
ü traits of entrepreneurs
List of Terms and Expressions II: Management and Organization;
III: Economy and Economics
ü management (definition)
ü shareholders
ü Board of Directors
ü senior management
ü CEO, CFO, COO, CIO
ü management functions: planning, organizing, leading, controlling
ü business resources
ü delegation and motivation
ü levels of management
ü first-line, middle, and top managers
ü areas of management
ü autocratic, democratic, free-rein leadership styles
ü teams
ü managerial structures
ü line authority, line and staff authority
ü centralized vs. decentralized organization
ü departmentalization
ü economics (definition)
ü micro and macroeconomics (definition)
ü goods and services
ü wants and needs
ü scarcity
ü economic resources (natural, labor, capital, entrepreneurial)
ü market economy
ü command economy
ü mixed economy
ü supply and demand
ü pure competition
ü monopolistic competition
ü oligopoly
ü monopoly
ü measuring economic activity/performance
ü GDP
ü standard of living
ü unemployment rate
ü rate of inflation
ü business cycle (4 stages)
ü fiscal and monetary policy
List of Terms and Expressions IV: Marketing
ü definition of marketing
ü goals of marketing
ü relationship marketing
ü the marketing environment and the 7 major forces
ü discretionary income
ü buyer’s power
ü SWOT analysis
ü PEST analysis
ü Porter’s Five Forces analysis
ü the marketing mix
ü 4Ps
ü Types of promotion
ü 7Ps
ü positioning
ü branding
ü direct and indirect distribution
ü market research
ü target market
ü market segmentation
ü product life cycle – 4 stages
ü advertising – definition
ü informative vs. persuasive advertising
ü infomercials
ü transit advertising
ü new forms of online advertising
ü endorsement
ü product placement
List of Terms and Expressions V: Finance
ü Financial management – definition
ü Scope of Financial Management
ü CFO
ü Treasurer
ü Controller
ü Goal of Financial Management
ü NYSE
ü NASDAQ
ü securities
ü cash flow
ü Primary and Secondary Markets
ü over-the-counter deals (OTC deals)
ü Dow Jones
ü capital stock
ü stocks and shares
ü common vs. preferred stocks
ü dividend
ü shareholder
ü IPO
ü bond
ü the bond issuer and holders
ü underwriter of stock
ü bear vs. bull market
ü to quote a bid
ü principal
ü maturity
ü hedge funds
ü accounting, bookkeeping, and auditing (differences)
ü financial statements: balance sheets, income statements, cash flow statements, statements of shareholders’ equity
ü assets, liabilities and shareholders’ equity
ü current assets
ü noncurrent assets
ü fixed assets
ü tangible and intangible assets
ü goodwill
ü accounts receivable and payable
ü current and long-term liabilities
List of Terms and Expressions VI: Globalization and Sustainable Development
ü globalization: definition
ü the controversy over globalization: pro and contra
ü McDonaldization
ü International Monetary Fund, World Bank
ü Greenpeace
ü the political, social, environmental and cultural dimensions
ü sustainable development: definition
ü the Brundtland Report
ü G8
List of Terms and Expressions VII: Business Etiquette and Ethics (based on Louis Mattia’s talk and material he made available at Éva Mathey’s ieas website)
ü definition of business etiquette
ü etiquette vs. manners
ü code of conduct
ü dos and don’ts of office behavior
ü fields affected by business etiquette (communications, behavior, handshakes, meetings, privacy, as a boss, as an employee, dress and fashion, etc.)
ü cross cultural differences and etiquette (China, Germany, etc.)
ü Geert Hofstede’s dimensions of cultural differences
ü business ethics
List of Terms and Expressions VIII: Five Keys to s Successful Business Career (based on Louis Mattia’s talk and material he made available at Éva Mathey’s ieas website)
ü business
ü asset, stock, goodwill
ü agenda
ü the FIVE P’s of professionalism
ü to synergize
ü Blake-Mouton Leadership Grid (country club, team, impoverished, authority-compliance management)
ü Meyer-Briggs character analysis
ü 7 habits of highly successful people
List of Terms and Expressions VIII: Human Resources and Recruitment
ü hiring
ü recruiting and filling vacancies
ü get short-listed
ü R&D
ü incentives and motivation
ü headhunting
ü CV pool
ü Dos and Don’ts of CV writing
ü job interview etiquette
ü downsizing
ü to lay off people
ü payroll
ü CI: continuous improvement
ü roles of HR: create and define structures and guidelines, initiate and drive, coach managers, supply administration and reports
ü L&D: learning and development
ü benchmarking, benchmark analysis
ü ROI (Return On Investment)
List of Terms and Expressions: From the Guest Lecture
ü RDI (Research, Development and Innovation)
ü innovation
ü start-up
ü cultural awareness
ü intercultural awareness
ü company core values
ü B2B (business to business) and B2C (business to customer)
ü high mix-low value vs. low-mix high value