Business Administration and Management Essentials
1. Business Structures and Legal Aspects
1.1. Corporation Liability
In a corporation, the shareholder’s liability is:
b) Limited to contribute.
1.2. Limited Partnership Capital
In a limited partnership:
b) The minimum capital is EUR 3005.45.
1.3. Cooperative Society Classification
The cooperative society is:
b) A non-commercial society, i.e., non-profit or social economy.
2. Business Location and Organization
2.1. Business Location Determinants
Factors to consider when determining the location of a business:
- Access to raw materials (suppliers)
- Potential for future expansion
- Local climate
- Social environment
- Cost of space (investment/rental)
- Availability of staff
- Basic infrastructure and proximity to public services
- Economic conditions
- Business services
- Business regulations
- Nearby facilities of interest
- Access to markets and income levels
- Level of pedestrian traffic near the point of sale
- Competition in the vicinity
2.2. Organizational Structure
In an organization based on a pyramid of authority, the organizational structure is:
b) Hierarchical.
2.3. Job Profiles
Job profiles are:
c) A document that defines the duties, responsibilities, skills, and conditions required for a specific job position.
3. Human Resources Management
3.1. Recruitment Tools
Recruitment tools used by companies:
- Advertisements in newspapers or online job boards (carefully crafted to attract the most suitable candidates)
- Submission of curriculum vitae
- Completion of questionnaires
3.2. Personnel Department Functions
Major functions of a company’s personnel department:
- Recruitment
- Administration
- Training and Development
- Industrial relations and social services
3.3. Personnel Selection Instruments
Instruments or tests used for personnel selection in companies:
- Curriculum vitae submission
- Completion of a professional profile
- Personal interview
- Medical and psychological tests
3.4. Contract Types
3.4.1. Part-Time Contracts
Requirements: Can be initiated by either the company or the worker.
Form of Contract: Must be in writing.
Trial Period: Cannot exceed 6 months for qualified technicians, 3 months for workers in firms with fewer than 25 workers, and 2 months for other workers.
Contract Duration: Can be part-time or temporary indefinite (limited duration).
3.4.2. Contra Practices
Only payable if agreed upon by both the employee and the employer.
Extinction: If the contract has lasted more than one year, the employee must provide written notice of at least 15 days for termination.
Compensation: Amounts to 8 days’ wages for each year of the contract, as determined by the collective agreement and time worked.
4. Pricing Strategies
4.1. Pricing Strategy Based on Product Quality
If a company uses high prices for high-quality products, it is implementing a strategy of:
b) Psychological pricing because consumers associate price with quality.
4.2. Factors Influencing Pricing Strategy
Factors to consider when setting the pricing strategy of a company:
- Product or service positioning: The price charged by competitors.
- Internal factors of the company: Cost and desired profitability.
- External factors: Competition and characteristics of distribution channels.
4.3. Pricing Strategies to Achieve Specific Objectives
| Objective | Strategy |
|---|---|
| Introduction of a new, low-price product | Low price |
| Short-term profitability | High price |
| Compete in a high-quality, prestigious segment | High price |
| Respond to or attack the competition | Discounts, rebates |
5. Financial Management
5.1. Income Tax Installment Payments
Methods for calculating income tax installment payments:
Category A: Based on the previous year’s payment.
Uses the latest tax period’s payment as the basis for calculating installments. A percentage, determined annually by the PGE Act, is applied to this base.
Category B: Based on the current year’s profit.
- First installment (April): Estimate the company’s profit for the first three months of the year using corporation tax rules. Subtract premiums, deductions, and income incurred on account charged from this base. Apply a fraction of the appropriate tax rate to the resulting base.
- Second installment (October): Calculate similarly, but using the profit for the first nine months. Deduct the April installment payment from the amount due.
- Third installment (December): Calculate based on the profit for the first eleven months, using the same procedure.
6. Service Company Considerations
6.1. Power Distribution in Service Companies
Aspects to consider when designing the distribution of power in companies providing services:
- Need for rapid and effective communication
- Appropriate spaces and conditions for intellectual work (sound, lighting, ergonomics, comfortable furniture)
- Aesthetic requirements of offices and premises
- Flexibility of spaces (alternative uses)
- Basic infrastructure for information technology
- In public services with significant customer flow: waiting rooms, treatment spaces, and queue management