BUSINESS SUMMARY

CHAPTER 16- HUMAN RESOURCE MANAGEMENT

Section 16.1: Employees: The Key to Success

 Definition and Importance of HR Management: HR management involves
finding, selecting, training, and evaluating employees, emphasizing that people
are the most valuable asset of a company.
 Attracting Good Employees:
 Job Descriptions: Writing clear and detailed job descriptions outlining
duties, qualifications, and conditions required for specific roles.
 Compensation and Benefits: Offering competitive compensation,
including wages or salaries and benefits like health insurance, sick leave,
and retirement plans to attract and keep good employees.
 Recruitment Methods: Using various recruitment methods such as job
postings, employment agencies, and referrals to find qualified candidates.
 Evaluating Job Applicants:
 Detailed screening process including reviewing applications and resumes,
conducting interviews, performing background checks, and checking
references to select the right candidate for the job.
Section 16.2: Developing and Retaining Employees
 Developing Employees:
 Orientation: Helping new hires adjust to the company through tours,
introductions, and informational sessions.
 Training: Offering on-the-job training, group training, and job rotation to
develop employees' skills.
 Evaluating Employees: Conducting performance appraisals to assess and
improve employee performance.
 Changes in Employee Status:
 Promotions: Awarding higher-level positions to deserving employees
based on merit or seniority.
 Transfers: Moving employees to other jobs within the company, usually
at the same level and pay.
 Separation: Managing voluntary resignations or retirements and
involuntary layoffs or terminations.
 Employee Turnover: Keeping turnover low by making careful hiring decisions
and providing sufficient training to increase new employees' chances of success.

This chapter underlines the pivotal role of HR management in fostering a productive

work environment through effective staffing strategies, employee development, and
retention practices. It highlights the complexity of HR tasks from recruitment to
managing changes in employee status, underscoring the significance of HR in achieving
organizational success.
CHAPTER 17- BUSINESS FINANCE

Section 17.1: Financial Management

 Purpose of a Financial Plan: It outlines the essential financial facts about a new
venture, aiding in decision-making and attracting investors by showing how the
business will start, operate, and expand.
 Identifies necessary assets for purchase.
 Estimates start-up and operational costs.
 Describes expenses and how they will be covered.
 Details financial record documentation and reporting.
 Forecasts future profitability.
 Explains funding strategies for growth.
 Budgets: Defined as plans specifying how money will be allocated during a
certain period, they help in predicting financial needs and controlling spending.
Three main types are highlighted: start-up, cash, and operating budgets.

Section 17.2: Accounting

 Accounting Basics: It's the systematic process of recording and reporting a
business's financial position, crucial for operational and financial decision-
making. It includes maintaining records, auditing, and using software tools for
efficiency.
 The Accounting Equation: Assets = Liabilities + Owner’s Equity. This
foundational equation ensures that a business's financial records are balanced,
accurately reflecting its financial status.
 Financial Statements:
 Balance Sheet: Shows balances in asset, liability, and owner’s equity
accounts at an accounting period's end, applying the accounting equation.
 Income Statement: Reports revenue, expenses, and net income or loss
over an accounting period, providing insights into the business's
profitability.
 Statement of Cash Flows: Details cash inflows and outflows, offering a
snapshot of the business’s cash position at any given time, critical for
understanding liquidity and financial health.
  Property Ownership and Control: Discusses how accounting measures property
and rights to it in dollar amounts, including assets (current and fixed), liabilities,
and owner’s equity.
Key Concepts Highlighted
 Financial Planning and Management: Stresses the importance of meticulous
financial planning for operational success, investment attraction, and sustainable
growth.
 Accounting Principles: Underlines the adherence to Generally Accepted
Accounting Principles (GAAP) to ensure consistency and accuracy in financial
reporting.
 Technological Tools: Mentions the use of accounting software (e.g., QuickBooks,
Peachtree Accounting) to streamline financial management and reporting
processes.
 Practical Applications: Through examples and case studies, the chapter
emphasizes real-world applicability of accounting and financial management
principles.