Mastering Management & Decision Making: Theories & Processes
Henry Mintzberg’s Management Theories
Henry Mintzberg: Background & Contributions
Henry Mintzberg, born in Montreal in 1939, is renowned for his work on the structure and design of organizations, as well as strategy.
Mintzberg’s 10 Managerial Roles
Mintzberg identified ten common roles of managers, categorized into three groups:
Interpersonal Roles
- Figurehead: The director or chief; has authority in the organization. Acts as a legal and social head.
- Leader: Responsible for the motivation and management
Corporate Equity Accounting: Stock, Repurchases, Options, & Dividends
Equity Financing: Paid-in Capital
Common Stock Fundamentals
When a corporation is formed, a single class of stock, known as common stock, is usually issued.
Common Stock Rights
- Voting rights
- Share in profits when dividends are declared
- Share in the distribution of assets if the company is liquidated
Preferred Stock Fundamentals
Corporations may later find that there are advantages to issuing one or more additional classes of stock with varying rights and priorities. Stock with certain preferences (rights)
Read MoreForeign Exchange Market Fundamentals
The foreign exchange market, or currency market, facilitates foreign currency and coin transactions between different countries.
Market Exchange: This is where currencies of different countries are bought and sold.
Key Concepts in Currency Exchange
Nominal Exchange Rate
The nominal exchange rate is the relative price of one currency in terms of another. It represents the number of foreign currency units required to obtain one unit of the national currency.
Depreciation of Exchange Rates
Depreciation of
Read MoreUnderstanding Key Accounting Concepts and Financial Statements
Key Accounting Concepts and Financial Statements
What are Circulating Assets?
Current Assets: These are items representing assets or securities resulting in the permanent conversion of the commercial or production cycle dedicated to the company. They represent availability, goods that may become available in the normal course of business with a maximum of one year from the balance sheet date. Examples include cash, bank accounts, accounts receivable, customer or debtor sales letters receivable, merchandise
Read MoreJournal Entries and Accounting Scenarios Explained
Accounting Transactions
Initial Balances:
Box: 8,000, Bank: 53,000, Merchandise: 16,000, Effects C BC: 3,400, Clients: 14,000, Furniture: 8,000, Machinery: 10,000, Element Tran: 90,000, HP receivable: 7,000, SS Creditors Agency: 3,000, Suppliers: 17,500, C purposes P: 12,900, Creditors: 8,000, Capital: 254,000
Transaction 1
Supplier to deliver 1,500 € (+ tax) on account of a purchase within 15 days.
Journal Entry:
Advance to Supplier: 500 (407), TAX SOPRTE: 750, Bank: 1575 (572)
Transaction 2
Purchase
Read MoreCurrency Depreciation, Interest Rates, and Exchange Rate Dynamics
Currency Depreciation and Current Account Effects
Question: “Sometimes currency depreciation does not improve the current account balance in a country.” Is this true or false? Explain your answer.
TRUE.
Normally, when a country’s currency depreciates, its exports tend to increase, and imports tend to decrease. This happens because the country’s goods and services become relatively cheaper for foreigners, enhancing its attractiveness and competitiveness.
An increase in exports leads to an increased
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