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CHAPTER 2 - Coggle Diagram
CHAPTER 2
The Basic Function in Business
PLANNING
Anticipating the future
Determining the organizational objectives
Deciding the activities to be involved
Choosing strategies
Determining resources to achieve organizational goals
The function of management of systematically making decisions about the goals to be achieved and activities or actions needed to achieve those goals that an individual, a group, a work unit or the overall organization will pursue in the future
Analyzing current situation
ORGANIZING
The management function of assembling and coordinating human, financial, physical, information and other resources needed to achieve organizational goals
Specifying job responsibilities
Grouping jobs into work units
Resource allocation
LEADING
The management function that involves the managers efforts to stimulate high performance by employees and includes directing motivating and communicating with employees, individually and in groups
Directing the workforce
Motivating your subordinates
Communicating with employee
CONTROLLING
The function of management of monitoring progress and making needed changes to make sure that the organizational goals are achieved
Setting performance standards that indicate progress toward long term goals
Monitoring staff performance through performance data evaluation
Identifying performance problems by comparing performance data against standards and take corrective actions
The Formation of a New Business
SOLE PROPRIETORSHIP
Sole proprietorship is the simplest form of business organization. It is owned by one person, but it need to be operated by that person alone. A sole proprietorship can even have large numbers of employees
ADVANTAGES
As a sole proprietor, you have absolute freedom in decision making
All profits will be your personal property
No reports of accounts are required
You only need to pay personal income tax and not business tax
DISADVANTAGES
Limited source of capital, limit the business activity
The liability of business is unlimited. The owner must be prepared to settle the debt with his personal assets
LiMITATIONS
PRIVATE LIMITED COMPANY
PUBLIC LIMITED COMPANY
Basic Accounting
ASSETS
BALANCE SHEET
PROFIT & LOSS STATEMENT
CASH FLOW STATEMENT
Various Way To Start A Business
Establishing a new business
Running a franchise
Buying an existing business