What is a Corporation? | Flashcards

requires that directors act on behalf of the corporation and its shareholders and refrain from selfdealing,

requires that directors discharge their duties in good faith and with the care that an ordinarily prudent person in a like position would exercise under similar circumstances and in a manner the director reasonably believes to be in the best interests of the corporation.

-Produces nonphysical outputs
-Quality percieved and difficult to measure
-Customized output
-Consumer participates in production process
EG: Airlines, Hotels, Hospital

-Produce physical goods
-Goods inventoried for later consumption
-Standaridzed output
-Production process removed from consumer
EG:Automobile manufacturers, Steel Companies, Soft-drink companies

Managing the sequence of suppliersand purchasers, covering all stages of processing from obtaining raw materials to distributing finished goods


-A network of multiple businesses and individuals that are connected through the flow of product and services.
-The main point is all of the activities that facilitate the satisfactory fullfillment of an order at the highest degree of satisfaction and the lowest possible cost.
- Arms length approach: when an organization spreads purchases among many suppliers to encouragae them to compete.
-Partnership approach: Picking one partner to work hand and hand to work cooridinate tasks and benefit both parties.




From Book:

Combining advanced technology and management process and using highly trained employees to solve problems, cut waste, improve productivity, quality, and efficiency of products and services, and increase customer value.

1.) Planning:Identifying goals for future organizational performance and deciding on the tasks and use of resources needed to attain them.
2.) Organizing: assigning tasks, grouping tasks in departments, delegating authoroity, allocating resources across the organizations.
3.) Leading: the use of influence to motivate employees to achieve organizational goals.
4.) Controlling: Monitoring employees activities, determining whether the organization is on target toward its goals, and making corrections as necessary.

- Orginization: is a social entity that is goal directed and delibertly structures.
- Effectiveness: The degee to which the organization acheives a stated goal.
-Efficiency: The amount of resources used to achieve an organizational goal.
-Ultimate goal of a manager is to achieve high performance.

- Conceptual Skills: The cognitive ability to see the organization as a whole system and the relationships among its parts.
- Human Skills: Is the managers ability to work with and through other people and to worl effectily as a group member.
- Technical Skills: Is the understanding of and proficiency of specific tasks.
*** The application of mgmt skills change as managers move up in hierarchy.

•Top managers are responsible for the entire organization
•Middle managers are responsible for business units
•First-line managers are responsible for production of goods and services

•Functional Managers are responsible for departments that perform specific tasks
•General Managers are responsible for several departments