Business Basics, Research Paper Example

Identify the pros and cons of a partnership as a form of ownership

A partnership is an ownership in which both partners are vested parties in the business. They partners often have shared interests and a common goal in mind. There are many pros and cons associated with a partnership. Pros include a shared start up cost, shared responsibility of work, shared risk and expenses, complimentary skills, additional contacts, and mutual support and motivation (Schaefer, 2013). Possible cons include that in a general partnership the partners are jointly and individually responsible for business activities of the other partner, one partner does not have total control over the business, and a friendship may not survive the business venture (Schaefer, 2013).

Discuss funding options for small businesses

The major ways in which to fund a small business are personal investment, commercial loans, equity financing, and government programs. The most common option is personal investment (Fowler, 2013). With this option the owner of the businesses uses personal savings or personal assets to fund the business (Fowler, 2013).

Commercial loans are provided by banks and credit unions. With this option money is giving to the business owner with an agreement that the money will be paid back with interest (Fowler, 2013). Often collateral is required with this option.

Equity financing takes place when an investor offers capital to operate the business in return for partial ownership (Fowler, 2013). This option makes the ownership a partnership essentially. The investor may be vested as a silent partner or a hands-on partner depending on the agreement.

The government sponsors some funding for small businesses, however not every person or business qualifies for the funding. The Small Business Administration is the largest entity sponsored by the federal government that offers small business funding (Fowler, 2013). The funding is often provided through commercial loans that are guaranteed by the government to be paid back (Fowler, 2013). These same loans would not usually be available to the owner without the government’s support.

Determine and discuss how managerial accounting can help managers with product costing, incremental analysis, and budgeting

Managerial accounting is the basis for many decisions that are made within a business. Managerial accounting takes the accounting data and develops and interprets the data in a manner that assists managers in operating the business (Williams, 2010). Having an accounting system allows managers to interpret and record the effects of business decisions, classify these effects in a manner that allows determination for various totals and subtotals useful to managers, and also allows for summarizing and communicating the information contained in the system to decision makers (Williams, 2010).

This type of accounting system allows managers to determine various facets of the financial data in order to determine and predict future information regarding product costing, incremental analysis, and a budget. Product costing is the costs incurred to manufacture inventory. These costs are reported on a balance sheet as inventory until the product is sold at which time it is them moved to the costs of goods sold category on the income statement. (Williams, 2010). This process allows for these goods to constantly be accounted for when the information is being analyzed to determine current costs and a future budget.

Incremental analysis is used to evaluate the effects of short-term changes that are expected in revenue and costs (Williams, 2010). These costs and revenues include any relevant costs and revenues. Managerial accounting assists in the understanding of what relevant costs and revenues are as well as how these short term changes involved in incremental analysis effect the company.

Managerial accounting also assists with the production of a budget. When producing a budget, managers use the accounting forms to determine a sales forecast, prepare separate budgets for production, sales, manufacturing costs, and operating expenses, prepare a budgeted income statement, and preparing a cash budget (Williams, 2010). All of these things will help to create a master budget and all information for this budget is taken from current accounting information and then predictions are made regarding the future.

Discuss the basic components of the marketing process using a product or service of your choice as an example

The basic components of the marketing process are identifying markets with unfulfilled needs, determining market segmentation, selecting a market to target, and positioning through marketing strategies (Belch, 2009). We will use the Xbox as an example. Currently they are creating a new Xbox that is smaller, more user- friendly and wanted by the existing market filling an unfulfilled need. Market segmentation can be determined by geographic segmentation, demographic segmentation, psychographic segmentation, behavioristic segmentation, or benefit segmentation (Belch, 2009). The market segments used for the Xbox are demographics and benefit segmentation. The target market is determined to be men ages 12 to 35 wanting video games to fill excess time or to stave off boredom. The next issue is positioning. This has been done through promotion and advertising on the current Xbox system as well as in magazines. The advertising tactics used have led consumers to become excited about the new product and it is considered a must have. Another tactic used by Xbox was to make old games incompatible with the new systems and new games incompatible with the old system, making this system a must have for new games.

Discuss the roles of social responsibility and technology in the marketing function

Social responsibility in relation to marketing stresses that the company should not only satisfy the needs of the consumer but also provide for the welfare of society (Kerin, 2009). There are three concepts involved with social responsibility which include profit responsibility, stakeholder responsibility, and societal responsibility. Profit responsibility simply states that the company has a responsibility to maximize profits for owners and stakeholders (Kerin, 2009). Stakeholder responsibility focuses on the obligations that an organization has to consumers, employees, suppliers, and distributors (Kerin, 2009). Societal responsibility refers to the obligations that organizations have to preserve the ecological environment and also to the general public (Kerin, 2009). Social responsibility basically entails that a company must cause the least amount of harm possible to owners, stakeholders, the general public, and society as a whole. The company must take measures to ensuring no wrong doing as well fix any mishaps that may arise. This is their responsibility.

Technology is also important to marketing. Each new wave of technology can replace existing products and companies (Kerin, 2009). As companies obtain research, technology continues to progress which makes the market an ever-changing atmosphere.

Technology has a great impact on consumer value. As the price of technology becomes lower, consumers are more aware of the quality, service, and relationships granted by companies (Kerin, 2009). As new products develop, consumers also expect that the company stays technologically up to date or they will seek new companies to utilize (Kerin, 2009).

Technology also has an impact on the way that business is conducted. Brick and mortar stores used to be the only way to shop. In today’s highly technological society business has evolved to the use of marketspace and electronic commerce (Kerin, 2009). Even businesses use networks such as intranets and extranets to communicate more effectively with employees and consumers (Kerin, 2009).

References

Belch, G. & Belch, M. (2009). Advertising and Promotion. New York: McGraw-Hill Irwin.

Fowler, P. M. (2013). What are the Major Funding Options for Small Businesses? Retrieved from Chron: http://smallbusiness.chron.com

Kerin, R. A. (2009). Marketing. New York: McGraw-Hill Irwin.

Schaefer, P. (2013). Is a Business Partnership the Right Choice for You? Retrieved from Business Know-How: http://www.businessknowhow.com

Williams, J. (2010). Financial and Managerial Accounting. New York: McGraw-Hill Irwin.