BUSINESS AND

MANAGEMENT
BY: JORGE BATISTA
REUVEN LEVY
 WHAT IS A BUSINESS?

• A BUSINESS IS ALSO KNOWN AS AN ENTERPRISE' COMPANY OR A FIRM IS AN

ORGANIZATIONAL ENTITY INVOLVED IN THE PROVISION OF GOODS AND
SERVICES TO CONSUMERS BUSINESSES ARE PREVALENT IN CAPITALIST
ECONOMIES, WHERE MOST OF THEM ARE PRIVATELY OWNED AND PROVIDE
GOODS AND SERVICES TO CUSTOMERS IN EXCHANGE FOR OTHER GOODS,
SERVICES, OR MONEY.
• A BUSINESS OWNED BY MULTIPLE INDIVIDUALS MAY BE FORMED AS AN
INCORPORATED COMPANY OR JOINTLY ORGANIZED AS A PARTNERSHIP.
COUNTRIES HAVE DIFFERENT LAWS THAT MAY ASCRIBE DIFFERENT RIGHTS
TO THE VARIOUS BUSINESS ENTITIES.
COMMON TYPES OF BUSINESS STRUCTURES
AND CORPORATIONS
 LIMITED LIABILITY COMPANIES (LLCS)

• INDEPENDENT LEGAL STRUCTURES SEPARATE FROM THEIR OWNERS.

• HELP SEPARATE YOUR PERSONAL ASSETS FROM YOUR BUSINESS DEBTS.
• TAXED SIMILARLY TO A SOLE PROPRIETORSHIP (IF ONE OWNER) OR A
PARTNERSHIP (IF MULTIPLE OWNERS).
• NO LIMIT TO THE NUMBER OF OWNERS.
• NOT REQUIRED TO HOLD ANNUAL MEETINGS OR RECORD MINUTES.
• GOVERNED BY OPERATING AGREEMENTS.
 C CORPORATIONS

• INDEPENDENT LEGAL AND TAX STRUCTURES SEPARATE FROM THEIR

OWNERS.
• HELP SEPARATE YOUR PERSONAL ASSETS FROM YOUR BUSINESS DEBTS.
• NO LIMIT TO THE NUMBER OF SHAREHOLDERS.
• TAXED ON CORPORATE PROFITS AND SHAREHOLDER DIVIDENDS.
• MUST HOLD ANNUAL MEETINGS AND RECORD MEETING MINUTES.
 S CORPORATIONS

• INDEPENDENT LEGAL AND TAX STRUCTURES SEPARATE FROM THEIR

OWNERS.
• HELP SEPARATE YOUR PERSONAL ASSETS FROM YOUR BUSINESS DEBTS.
• OWNERS REPORT THEIR SHARE OF PROFIT AND LOSS IN THE COMPANY ON
THEIR PERSONAL TAX RETURNS.
• LIMITS ON NUMBER OF SHAREHOLDERS, WHO MUST BE U.S. CITIZENS OR
RESIDENTS.
• MUST HOLD ANNUAL MEETINGS AND RECORD MEETING MINUTES.
 PARTNERSHIPS

• PARTNERS REMAIN PERSONALLY LIABLE FOR LAWSUITS FILED AGAINST THE

BUSINESS.
• USUALLY NO STATE FILING REQUIRED TO FORM A PARTNERSHIP.
• EASY TO FORM AND OPERATE.
• OWNERS REPORT THEIR SHARE OF PROFIT AND LOSS IN THE COMPANY ON
THEIR PERSONAL TAX RETURNS.
 SOLE PROPRIETORSHIPS

• OWNER REMAINS PERSONALLY LIABLE FOR LAWSUITS FILED AGAINST THE

BUSINESS.
• NO STATE FILING REQUIRED TO FORM A SOLE PROPRIETORSHIP.
• EASY TO FORM AND OPERATE.
• OWNER REPORTS BUSINESS PROFIT AND LOSS ON THEIR PERSONAL TAX
RETURN.
 WHAT IS MANAGEMENT?

• IS THE ADMINISTRATION OF AN ORGANIZATION, WHETHER IT BE A BUSINESS,

A NOT-FOR-PROFIT ORGANIZATION, OR GOVERNMENT BODY. MANAGEMENT
INCLUDES THE ACTIVITIES OF SETTING THE STRATEGY OF AN ORGANIZATION
AND COORDINATING THE EFFORTS OF ITS EMPLOYEES OR VOLUNTEERS TO
ACCOMPLISH ITS OBJECTIVES THROUGH THE APPLICATION OF AVAILABLE
RESOURCES, SUCH AS FINANCIAL, NATURAL, TECHNOLOGICAL, AND HUMAN
RESOURCES. THE TERM "MANAGER" REFERS TO THE PEOPLE WHO MANAGE
AN ORGANIZATION.
STYLES OF MANAGEMENT
 DIRECTIVE

• THE DIRECTIVE STYLE HAS THE PRIMARY OBJECTIVE OF IMMEDIATE COMPLIANCE FROM
EMPLOYEES:
• THE “DO IT THE WAY I TELL YOU” MANAGER
• CLOSELY CONTROLS EMPLOYEES
• MOTIVATES BY THREATS AND DISCIPLINE

• EFFECTIVE WHEN:
• THERE IS A CRISIS
• WHEN DEVIATIONS ARE RISKY
 AUTHORITATIVE

THE AUTHORITATIVE (VISIONARY) STYLE HAS THE PRIMARY OBJECTIVE OF PROVIDING LONG-TERM
DIRECTION AND VISION FOR EMPLOYEES:
• THE “FIRM BUT FAIR” MANAGER
• GIVES EMPLOYEES CLEAR DIRECTION
• MOTIVATES BY PERSUASION AND FEEDBACK ON TASK PERFORMANCE

EFFECTIVE WHEN:
• CLEAR DIRECTIONS AND STANDARDS NEEDED
• THE LEADER IS CREDIBLE
 AFFILIATIVE

THE AFFILIATIVE STYLE HAS THE PRIMARY OBJECTIVE OF CREATING HARMONY AMONG EMPLOYEES AND BETWEEN MANAGER AND
EMPLOYEES:
• THE “PEOPLE FIRST, TASK SECOND” MANAGER
• AVOIDS CONFLICT AND EMPHASIZES GOOD PERSONAL RELATIONSHIPS AMONG EMPLOYEES
• MOTIVATES BY TRYING TO KEEP PEOPLE HAPPY

EFFECTIVE WHEN:
• USED WITH OTHER STYLES
• TASKS ROUTINE, PERFORMANCE ADEQUATE
• COUNSELLING, HELPING
 PARTICIPATIVE
THE PARTICIPATIVE (DEMOCRATIC) STYLE HAS THE PRIMARY OBJECTIVE OF BUILDING
COMMITMENT AND CONSENSUS AMONG EMPLOYEES:
• THE “EVERYONE HAS INPUT” MANAGER
• ENCOURAGES EMPLOYEE INPUT IN DECISION MAKING

EFFECTIVE WHEN:
• EMPLOYEES WORKING TOGETHER
• STAFF HAVE EXPERIENCE AND CREDIBILITY
• STEADY WORKING ENVIRONMENT
 PACESETTING

THE PACESETTING STYLE HAS THE PRIMARY OBJECTIVE OF ACCOMPLISHING TASKS TO A HIGH STANDARD
OF EXCELLENCE:
• THE “DO IT MYSELF” MANAGER
• PERFORMS MANY TASKS PERSONALLY AND EXPECTS EMPLOYEES TO FOLLOW HIS/HER EXAMPLE
• MOTIVATES BY SETTING HIGH STANDARDS AND EXPECTS SELF-DIRECTION FROM EMPLOYEES

EFFECTIVE WHEN:
• PEOPLE ARE HIGHLY MOTIVATED, COMPETENT
• LITTLE DIRECTION/COORDINATION REQUIRED
• WHEN MANAGING EXPERTS
 COACHING
THE COACHING STYLE HAS THE PRIMARY OBJECTIVE OF LONG-TERM
PROFESSIONAL DEVELOPMENT OF EMPLOYEES:
• THE “DEVELOPMENTAL” MANAGER
• HELPS AND ENCOURAGES EMPLOYEES TO DEVELOP THEIR STRENGTHS AND
IMPROVE THEIR PERFORMANCE
• MOTIVATES BY PROVIDING OPPORTUNITIES FOR PROFESSIONAL DEVELOPMENT

EFFECTIVE WHEN:
• SKILL NEEDS TO BE DEVELOPED
• EMPLOYEES ARE MOTIVATED AND WANTING DEVELOPMENT