Kategorier: Alle - revenue - assets - liabilities - accounting

af Hunter Bozanin 12 måneder siden

123

The Introduction of Business

Understanding business accounting involves several key components, including income statements and balance sheets. An income statement displays the financial performance of a business, indicating whether there is net income or net loss.

The Introduction of Business

The Introduction of Business

Leadership

Three different styles of leadership
Lassiez-faire

No one seems to be in charge

Advice is offered only if asked

Gives little or no direction nor, motivation to teamwork or members

Democratic

Supports teamwork

Leader has final say

Asks before tells

All members are involved

Autocratic

"It's my way or the highway"!

Not open to new ideas

Tells others what to do

Managers versus leaders
Managers are people who do things right, while leaders are the ones who do the right thing.
Leadership goals
Leaders vary their styles

One style typically becomes the domanaite one

Most leader us all three styles

Leadership style is the manner and approch of...

Motivating People

Implementing plans

Providing direction

Negative leaders
Negative leaders use peilties with there employees

Assining unplesent job tasks

Reprimanding infront of others

Days off without pay

Negative penalties Include

These leaders act domineering and superior with people

Positive leaders
Positive leaders use rewards to motivate employees

Lieu time off

Raises bounses

Acknowledgment

Development oppratunities

Independance

Role of management
Controling

Management's role is to determine why

If company fails to meet goals

Management's role is to duplicate it.

If the company meets it's goals (profit)

Profit is the ultimate measure of preformance

Ensuring company goals and objectoves are met.

Organizing

Systems and procedures

Employees positions and responsabilities

Structure of the organization

Planing

Trends and changes in the business environmet

Begins with reaserch

Forecasting the future

Personal finances

Compound intreast
Is the intreast earned on intreast
How to bulid wealth
You will also need to learn how to.

Control debt

Save and invest

Budget and save

Earn money

In order to build good wealth you will need.

Need to make good choices

Good planning

Good info

Factors relating to job market
Economic conditions

A slowdown (recession) in the economy results in layoffs, pay cuts/freezes.

If the economy is booming, "money is being made and jobs are plentiful.

success of the business

How successful a business is will determaine what saleries they can afford to pay.

Type of business

some types of businesses pay more then others.

Paycheque formula
Income level factors

Why do some jobs pay more than others?

Uniqueness of abilities: I.e being bilinugal, have a rare skill set or training.

Personal preformance: Employers don't want to lose good hard working employee's. Competent staff become valuable assets. The better you are, the greater possiablity of reciveing a higher salary.

Expierence: the more experiance you have, the more valuable you are because you won't take as long to be trained (which is costly time and money)

Education: the more education you have, the greater chances you will earn more money.

Non government deductions

Union dues

Take off money to pay to pay for union dues automatically

Charitable doanations

Take off moey for charities, I.e, united way, M.A.D.D, ect.

Life insurance

Deduct money in order for you/your family to recive money when you pass away.

RRSP

Registered retierment savings plan is a government savings plan.

Savings plan

Take off money to put into a savings account (forces you to save)

Health plan

Take off money to pay for benifits such as, glasses, dental, drug plan, ect

Company pension plan

Take off money to put into a retirment plan (over 65) collect a work pension ( plus government pension- CPP)

Payroll- Government deductions.
Types of expenses

How does the government recive the money?

The amount of income tax that you have already paid from your pay will be compared to the amount of tax that would be payable for your situation.

At the end of the year, the government wants to make sure that you have paid the correct amount of taxes from your income bracket, thus, every year, you are expected to file an income tax return by april 30th.

Everytime you get paid, mandetory deductions are subtracted from your paycheque the employer then remits these taxes to the government.

EI: employment insurance

If you get laid off, not fired and have worked 420 hours you can collect on EI cheques for awhile.

Pay into it from every paycheque even if you are not yet 18.

CPP: Canadian pension plan

When you reitire, become disabled or should your spouse pass away, you can recive CPP.

Pay into it from every paycheque.

Employees (workers) and employers bosses both contribute to CPP.

Anyone who works and is over 18 years old contributies to CPP.

Income tax

The money goes towards federal expenses such as defense, social programs ( EI, CPP) Canadian debt and to provicial expenses such as health, education, welfare and provicial debt.

Anyone who earns income has to pay federal and provincel income tax.

Payroll - vocabulary
Piecework

Get paid for every item you make. The more you make the more money you get.

Commission

Get paid a percent amount depending on your sales (how much you sell)

Hourly rate

Get paid a set amount per hour. if any O/T. you will get paid extra. 1.5 double.

Discretionary income

Money left over after all necessities ( I.e food, rent, mortgage, utilities, ect) have been paid.

Salary

Get paid the same amount every pay- not paid for any O/T

Deductions

Mandatory gov't and any voluntary amounts taken off of your gross pay

Net pay

"take home" pay actual amount on your paycheque after deductions

Gross pay

Gross means "big" total pay before deductions

Critiria for making effective purchase disisions
Warranties and gaurantees

Gaurantee: a formal promise or assurance that goods/services are of a sepcific quality.

Warranty:provides after sales service on a product for a specified period of time.

Quality

Question: should you pay more and get high quality. Or should you pay less and get mediocre quality

Service

I.e real estate agent, mechanic, stock broker, ect

Somehing that you pay someone else to do for you because you don't have those particular skills or knowlage

Comparison shopping and product info.

Compare your different choices (pros vs cons) in order to decide which choice suits you best.

Make a list detalling important "must haves" for you.

How do you compare big items?

Buyer behaviour

For example:

Others might prefer to spend their money on the purchase of a home, knowing that at the end of the term, they would have something to show for their efforts and will own versus rent what they have been paying for.

Might prefer to pay rent to avoid having to cut the grass, paying property taxes directly, ect.

So people might view a home purchase as a burdun, rather then a benifit.

Indaviduals have different wants and needs that influance their buying decisions

costs (expenses)

In other words: How much desposable income (take home pay) is left to play your monthly bills such as: food, clothing, taxes, utilitse, ect.

Question: What are your monthly cost.

Money avaliable

Pre-approval from the bank

Used to determaine how much of a loan you qualify for.

Bank looks into your finalcial position ( salary, credit rating, assest, cash, work, history, .ect) to see what type of risk you'd be.

Big expensive purchases require some big dicision making. For instance, buying a house or car isn't something you rush into.
Ways we us are money
Gamble

Bet on luck for a gain

Doante

To help assist others in need

Invest

To increase value over time

Save

For future use

Spend

On goods and services

Markiting

The Marketing Mix
The 4 p's and two C's in the marketing mix

The consumer

The compitition

price

Promotion

Product

The time and money spent on the Marketing activities reqiured to move a particular product or service from the producer to the consumer.
Lablling
Product ingredians
Part of packaging info for the customer to see
The product-service mix
retail stores provide value to the products they sell

Gift wrapping

Carry outs

Advice

Alterations

Extended warrenties

Delivery

Installation

Benifits of compitition
Technology advansments
Product improvments
Increased productivity
Better prices
Altreative choices
Increased selection
Indirect competition
The options are not directly related to eachother
Direct competition
Very similar products addresing the same need.
Place
place stratiges involve the following decisions.

How a product is being distibuted, Online, storefront or both

Where a product is to be distibuted locations stores.

Price
Pricing stratiges involve the following decisions

What image to project to the customers

What the competitors are selling their product for.

Reflecting on what a customer is willing to pay for the produce

Roles of marketing
Promotion
Advertising
Distribution
Reaserch
Development
Sales
Branding
a Slogan is a short catchy phrase that will catch peoples attention very easily.
Logo/Trademark is when a business combines there name with a special symbol i.e.
Brand name is a word, or a group of words. to distinguish a businesses product from it's competitors

Accounting

income statement
Net Loss, Net loss is when you expenses are greater than your income.
Net income, Net income mean you have a profit greater than your expenses.
Expenses, Expenses is money that is spent.
Revenue, Revenue is money earned from preforming a service or selling goods.
Balance sheets
owners equity is your net worth after you do assets-liabilities and that will = your net worth which is Owners equity.
liabilities are things that you owe like a bill.
assets are things that you own with a dollar value.