What Are the Four Management Functions That All Managers Must

question 137

Short Answer

What are the four management functions that all managers must perform?

Recognize the legal implications of partnership actions and the responsibilities of partners in a business.

Identify the characteristics and limits of various business formations, including S corporations and franchises.

Understand how limited liability partnerships (LLPs) and limited liability companies (LLCs) protect their owners.

Know the processes and legal requirements for forming, operating, and terminating different types of business entities.

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Definitions:

Equity Method

An accounting technique used to record investments in other companies, where the investment is shown as an asset and changes in the investment's value are reflected in profits or losses.

Goodwill

An intangible asset that represents the excess of the purchase price over the fair market value of acquired net assets during a business acquisition.

Initial Value Method

An accounting approach where investments are recorded at their purchase cost without adjustment for changes in market value.

Noncontrolling Interest

A share in the equity of a subsidiary not owned by the parent company, also known as minority interest, reflecting ownership that does not have controlling power.