Introduction to business (final exam)
CH.2 Ethics and Social Responsibility
Business …Make profit
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 Business Ethics – the use of application
Ethics …Study of what is right or wrong
Corporate Social Responsibility(CSR)
=Activities that give back to customers ,make a lot of money from
people and them give back
Ex. -Foundation
-Environmental Progress
Consumerism :The right to …..
-To safety Ex. Some caution message
-To be informed Ex. Ingredients of the product
-To choose : Right to select the goods or services that they want
-To be heard : Can give feedback / complain
-To consumer education : Right to study , To know their rights
-To service : Right to be provided services/response to their wants and
problem.
CH.3 Business in Global Setting
Export
Trade
Import
- Absolute Advantage: activity to produce better or more than other country
(Compare two country)
- Comparative Advantage: We look within each country (Compare goods)
BOT = Export Value – Import Value
Positive Value(Trade Surplus) , Negative Value(Trade Deflicit)
Benefit of Internal Trade
-Price Drop = Make product lower price
-Make choice = Local people make more choice(Increase productivity
-Use of resources = Can make more
-Jobs = Business open in Thailand and people have more jobs
Trade Restriction = Government Policy set to limit the International trade
-National Security = Don’t know what they are doing
-Citizen life
-New/Weak Industry :To product local producer which government support
-Domestic Job
-Retalite
Types of restriction  Tariff(Import fee)
Non-tariff-Import Quota
-Emparge
-Foreign Exchange Control
-Currency Devoluation
Method of entering International Business
-Export
-Trade Company
-Licensing: The product make in local market but use International Band
-Strategic Alliances : 2 or more than work together introduce only new
products /services to customer
-Joint Ventures : When 2 or more together upon another business
-Totally owned facilitates : Direct Investment , Start up business in another
country
-Multinational company : product sold around the world
Chapter4 : Choosing a form of business ownership
There are 3 forms of business owner
1.Sole proprietorship (1 owner)
Advantages
- It is easy to start and end
- Feel proud (pride of ownership)
- Get full profit
- Be your own boss
Disadvantages
- Unlimited liability (Responsibility for all the debts)
- Lack of continuity
- Lack of money
- Limited management skills
2. Partnership (two or more persons)
Type of partner
1. General partner : who assume full or share responsibility for operating
business.
2. Limited partner : contributes capital to a business but has no
responsibility or liability for loss
Advantages
- Easy of start-up
- Availability of capital and credit
- Combined business skills and knowledge
- Retention of profit
Disadvantages
- Unlimited liability
- Management disagreements
- Lack of continuity (one partner die, it is hard to continuity)
- Frozen investment (for limited partner)
3.Corporation
- separates ownership and control
- ownership : stockholders
- control : Board of director
Hierarchy of corporate structure
Stockholders
(owner)
Hire
Board of
directors
Elect
Officers
Appoints
Advantages
- Limited liability
- Easy of raising capital
- Easy of transfer of ownership
- Perpetual life
- Special life management
Disadvantages
- Difficulty and expense of formation
- Government regulation and increased paperwork
- Conflict within the corporation
- Double tazation
Employee
- Lack of secrecy
Chapter 5 Accounting
PART I
Users of accounting
-Management and Employees : Use to help on company’s
management.
-Lenders and Suppliers : Use to looking for cash flow and etc.
-Stockholders and Investors : Use as the information on making
future investment’s decision.
-Government Agencies : Use for checking on Tax.
Type of Accounting
-Managerial Accounting : To provides information for managers
and employees in the organization to make decisions about a firm’s
financing, investing, marketing, and operating activities.
-Financial Accounting : generates financial statements and
reports for people outside an organization.
Accounting Reports : Accounting (Financial) Reports [ Balance Sheet
Income Statement Balance Sheet ].
-Balance sheet : A summary of the dollar amounts of a firm’s
assets, liabilities, and owners’ equity.
-Accounting Equation : Assets = Liabilities + Equity
-Assets : money and other valuables that belonging to the
business.
-Current Assets : Asset that can quickly converted to money that
will be used in one year or less.
-Fixed or Non-current Assets : Asset that can converted to
money and will be used more than one year or less.
-Liabilities : Debts of the business
-Current Liability : Debts that will be paid in one year or less.
-Long-term or Non-current Liability : Debts that need not be paid at
least one year.
-Equity : Amount of fund (money) invested by owners.
-Income Statement : A summary of a firm’s revenues and expenses
during a specified period.
-COGS: Consider only direct cost or cost directly related to production
process.
-Operating Expenses: cost related to selling and operating activities.
-Interest Expenses: Consider cost of debts or liabilities.
-Total Revenue – Total cost = Net Profit
-Statement of cash flow : A report of the cash generated and used by
looking at three components.
-Operating activities : cash that use to provide goods and services
how much cash is paid to produce and generated from selling
a company's products.
-Investing activities : cash that use on purchase and sale of land,
equipment, and other assets and investments.
-Financing activities : cash receive from issuing stock, cash that paid
for dividends and others.
PART II
Evaluating firm’s financial performance by using financial ratios.
Financial Ratio: A tool to standardize, measure and evaluate firm’s
financial performance.
By considering with two type of analysis
- Trend Analysis : compare with the past.
- Cross-sectional Analysis : compare with other company in
the same period of time.
Aspects of using financial performance on evaluating the firm.
Liquidity Measurement
(Ex. : Current Ratio  Total current asset/Total liabillity)
Profitability Indicator
(Ex. : Net Profit Margin  Net profit/Net sales)
Operating Performance
(Ex. : Total Asset Turnover  Net sales/Total asset )
Debt Management
(Ex. : Debt to Equity Ratio  Total liability/Total equity)
Chapter 6 Understanding the management process
Management: using the business resource in oder to get what
organization want
Basic management functions
 Planning : involve 2 things What do you want , how to get it
-Vision: what do you want in long future
-Mission: what you doing to day
-Strategic Planning: How can you reach the goal?
-Goal: 10 years
-Objective: 1 year
-Strategy: action now
 Organizing : finding all the resource we need
 Leading/Motivating : in order to convince to work
-Autocratic: don’t care what member think’ just follow the orders.
-Participative: every involve in decision making, but the leader need to
make final decision
-Detegative: lender give all power to member
 Controlling : follow the plan, something that unexpected how can we
control it
in order to understand ourselves we need to know SWAT analysis
SWOT Analysis
Strength
Opportunities
Helpful
Weakness
-internal able to control, effect business
only
Threats
-External unable to control, affect us and
competitions
Harmful