Types of Businesses

One important characteristic of a business is its type. The differences between them reflect their differing goals and concerns while they would face different kinds of challenges because of differences in business scope. These are; Local business, Regional business, International business and National business. In general, we can define a local business as the ones that serve a limited geographical area and rely on local consumers.

Generally, producers would o?er more of a product for sale as the price increases because they can make more money and higher profits; and to o?er less of the product at lower prices. This is based on the assumption that a producer’s aim is to make as much profit as possible, i.e. to maximize profits. So the amount of a product supplied will increase as the price rises; and if the price drops then less of the product will be supplied. This is the principle of the law of supply. The law of supply - the amount of a product supplied
will increase as the price rises; and if the price drops then less of the product will be supplied

So companies must be

• More competitive • Faster and more responsive • More cost-effective • Human capital • Downsized • Leaner • Organized around empowered teams • More scientific in how they make decisions • More fiscally conservative

Labor demand determines how many and what type of employees the organization needs in the future.

Fiedler’s model seeks for the appropriate combination between the leadership style and environmental circumstances with an aim to determine the most efficient leadership outcome.

Situational theory. This approach also emphasizes that the leadership style is contingent. The premise of the situational theory: Leadership is shaped by the demands of situations where employees are the situational variables.

The premise of the situational theory: Leadership is shaped by the demands of situations where employees are the situational variables.

Situational theory was originated by Hershey and Blanchard.

This theory refers to two primary leadership styles which are directive and supportive.

Empowerment refers to giving an employee or a team the power, information,
responsibility and accountability to do the job well.

Commandite companies. A commandite company  is equivalent to the limited partnership in which the partners can be active (called general partner) or dormant (called silent partner). Active partners manage the firm and have unlimited liability while silent partners have no role in the management of the firm but have limited liability. There is no minimum share capital required for any partners.

Beside similarities between the management and leadership roles, there are also distinguishing characteristics. One of them is that management authority is based on legal authority; leadership power comes from followers.

Advertising function is not a major function in a business. Doğru cevap C’dir.

The contingency approach emphasizes that leadership style and best managerial approach change according to environmental factors. Different contingency theories examine the match between the leadership approach and the
environmental composition.

There are six major forces of the environment: the economic environment, the technological environment, the legal and political environment, the social environment, and the global environment.