TEMUR SHENGELIA

FUNDAMENTALS OF BUSINESS ADMINISTRATION

(PART 1,2)

Pablisher house „Universal“

2 Tbilisi
2017
 UDC 338.22(075.8)
The previous text-book is concerns foundational issues of modern business. The
most important theoretical and practical problems of this sphere are learnt and analyzed
there: forms of business affairs and business environment, it’s ethical and social
responsibility, basis of modern business, problems of business, management, human
relations in business, basis of business-marketing and others.
The main value of this text-book is it’s pragmatic, useful character with rich
contents, that subdued both the contents and structure of things produced in it.
The previous text-book is designed for students of business administration and
listeners of business schools. It will help businessmen, every person who is interested
in issues of start-up of business and in the issues of business management and
organization.

EDITOR: Doctor of Economic Sciences Professors GIORGI MALASHIA

REVIEWERS: Doctor of Economic Sciences, Professor MICHEIL JIBUTI

Doctor of Economic Sciences, Professor REVAZ GVELESIANI
Doctor of Economic Sciences, Professor SIMON GELASHVILI

© T.Shengelia, 2016
© Pablisher house „Universal“,2016

ISBN 978-9941-17-778-1

CONTENTS
From the author

Instead of entry: business without boundaries – way towards business

PART I. METHODICAL ISSUES OF BUSINESS ADMINISTRATION

Chapter I. Business comprehension and its meaning

I.1. Concepts of business
I.2. Business, as the system of economic relationships
I.3. Establishment of system of business
I.4. Nature of economic system
I.5. Economic motives that have influence on business
I.6. Role of demand and supply in the development of business
I.7. Economic strengths affecting society. Cycle
I.8. The role of government in developing business
Reviewing questions
Short revision of issues discussed in the theme

Chapter II. Environment of business, social and ethical responsibility

II.1. Business environment comprehension
II.2. Judicial environment of business
II.3. Political environment of business
II.4. Evolution of concept of business social responsibility, comprehension and forms
II.5. Comprehension of business ethics and specifics.
II.6. Basis of active ethics
II.7. Philosophical basis of business social responsibility
II.8. Business and natural environment
II.9. Business and customers
II.10. Stimulation of equal rights in employment
II.11. Business and investors
II.12. Stimulation of business ethical responsibility
Reviewing questions
Short revision of issues discussed in the theme

Chapter III. Types of business organizations.

III.1. Companies that are engaged in the sphere of production and service
III.2. Division of companies according to types of ownership
III.3. Norms for registration firms in Georgia.
III.4. Structure and management of corporations
III.5. Absorption and unification of corporations
Reviewing questions
Short revision of issues discussed in the theme

Chapter IV. Planing of business start-ups

IV.1. Establishment and development of small business
IV.2. Organization of creation of small firms
IV.3. Analysis of informational sources about business
IV.4. Appreciation of business
IV.5. Sources of financial support of business purchasers
IV.6. Establishment of business value
IV.7. Bargain structure of purchase and sale of business and culture of agreement
IV.8. Evaluation of active proposals and establishment of conditions of sale
IV.9. Selection of judicial forms of business
IV.10. Organization of creation of business plan in small enterprises
IV.11. Instalation of business plan
Reviewing questions
Short revision of issues discussed in the theme

Chapter V. Financial support of business start-up

V.1 financing sources of business start-up
V.2. Preparation of financial dates
V.3. Borrowing of money and management of financial sources
V.4. Role of management in efficiency of financial resources
Reviewing questions
Short revision of issues discussed in the theme

Chapter VI. Capital of ventures and franchise, as form of business organization

VI.1. Comprehension and size of venture capital
VI.2. Level of development of business and seeker of venture financing
VI.3. Preparation of sentences about venture financing
VI.4. Conditions of financing of venture forms
VI.5. Types of venture firms
VI.6. Meaning of financial plan for possession of venture capital
VI.7. Franchising, as the form of private organization
VI.8. Estimation of possibilities of franchising
VI.9. Packet of franchise
Reviewing questions
Short revision of issues discussed in the theme
Chapter VII. Basis of international business
VII.1. Development of international business
VII.2. Role of government in the regulation of international business
VII.3. International organizations
VII.4. Role of International Monetary Fund and World Bank in the development of
business
VII.5. Sphere of business influence on international relationships
VII.6. Forms of international active relationships
Reviewing questions
Short revision of issues discussed in the theme

PART II. PRACTICAL ASPECTS OF BUSINESS ADMINISTRATION

Chapter VIII. Management of business
VIII.1. Basis of business management
VIII.2. Role analytical habits in management
VIII.3. Processes of management
VIII.4. Function of organizations
VIII.5. Function of managers
VIII.6. Function of control
VIII.7. Management of company in critical situation
Reviewing questions
Short revision of issues discussed in the theme

Chapter IX. Organizational structure of business

IX.1. Comprehension and meaning of business organizational structure
IX.2. Vertical organizational structure
IX.3. Norms of management
IX.4. Establishment of structure of subdivisions
IX.5. Horizontal organizational structure
IX.6. Culture of corporations
Reviewing questions
Short revision of issues discussed in the theme

Chapter X. Production of goods and services

X.1. Origin and development of production process
X.2. Industrial strategy of business
X.3. Operative and industrial management of production
X.4. Control industrial processes
X.5. Calendar planning
Reviewing questions
Short revision of issues discussed in the theme

Chapter XI. Management of material resources and logistics in business

XI.1. Role of logistics in the development of business
XI.2. Evolution of concept of logistics
XI.3. Logistics as scientific direction
XI.4. Development and establishment of logistics
XI.5. Meaning of term “logistics”
XI.6. Types of logistics
XI.7. Goals of logistics
XI.8. Functions of logistics
XI.9. Objects of logistics
XI.10. Creation of program of supply
XI.11. Identification of characteristics of purchasing object
XI.12. Identification of demand on inventory during span of time
XI.13. Politics of supply conditions
XI.14. Planning of giving of goods
XI.15. Methods of planning of logistics
Reviewing questions
Short revision of issues discussed in the theme

Chapter XII. Management of labor

XII.1. Process of management of labor
XII.2. Planning and interpretation of demand in labor
XII.3. Analysis of professional functions
XII.4. Recruit of new workers
XII.5. Increase of qualification and education of employees
XII.6. Testing and evaluation of occupation of employeres
XII.7. Salary and compensation of work
XII.8. Programs of motivation
XII.9. Additional fees and service
XII.10. Aid of families
XII.11 Changes in the work status of employees
XII.12. Pension programs
Reviewing questions
Short revision of issues discussed in the theme

Chapter XIII. Human relations in business

XIII.1. Human relations in organizations
XIII.2. Theories of motivation
XIII.3 Motivation and style of management
XIII.4. Ways oriented on employees
XIII.5. Ways oriented on work
XIII.6. Methods oriented on organizations
Reviewing questions
Short revision of issues discussed in the theme

Chapter XIV. Marketing is philosophy of business

XIV.1. Philosophy of concept of marketing
XIV.2. Factors of marketing
XIV.3. Information in the sphere of marketing
XIV.4. Strategic planning and marketing
XIV.5. Marketing in world market
XIV.6. Establishment of prices and advance of production in international marketing
XIV.7. Trademark and division of products in international marketing
XIV.8. Advertisement in sphere of international marketing
XIV.9. Specifics for learning of west market
XIV.10. Program of sale in west marketing
XIV.11. Design and packaging in west market
Reviewing questions
Short revision of issues discussed in the theme

Chapter XV. Accounting in Business

XV.1. Goals and Functions of accounting
XV.2. Spheres of accounting
XV.3. Fundamental principles of the accounting
XV.4. Financial accounting system
XV.5. Reading technology of financial accounting
XV.6. The idea of the financial analyzes
XV.7. Importance of financial analyzes in the development of the company
Reviewing questions
Short revision of issues discussed in the theme

PART III. REALIZATION OF BUSINESS ADMINISTRATION

Chapter XVI. Role of the money and financial system in the development of the
business
XVI.1. Functions of the money
XVI.2. Amount of money and money definition
XVI.3. Georgian monetary system
XVI.4. Principals of the banking
XVI.5. Main functions of national bank
XVI.6. System of the federal reserve
XVI.7. Financial institutions
XVI.8. Basic functions of the commercial banks
Reviewing questions
Short revision of issues discussed in the theme

Chapter XVII. Financial markets and stock exchanges

XVII.1. Idea of the securities and classification of it
XVII.2. Varity of investment
XVII.3. Mutual funds
XVII.4. Futures and options
XVII.5. Equities and fixed income markets
XVII.6. Development of the Georgian equities and fixed income markets
XVII.7. Development of the stock exchange
XVII.8. Role of the information in the development of the equities and fixed income markets
XVII.9. Brokerage companies
XVII.10. Procedures of the stock trading
XVII.11. Trading with securities on the Georgian financial market
Reviewing questions
Short revision of issues discussed in the theme

Chapter XVIII. Risk management and insurance

XVIII.1. Idea of the risk
XVIII.2. Risk management process
XVIII.3. Insured and not insured risks
XVIII.4. Insurance companies
XVIII.5. Insurance relation
XVIII.6. Varieties of the business insurance
Reviewing questions
Short revision of issues discussed in the theme

Chapter XIX. Role of taxation in business

XIX.1. The idea of tax system, principals and functions
XIX.2. Classification of the taxes
XIX.3. Kinds of the taxes
XIX.4. Tax liberalization in off-shore zones
Reviewing questions
Short revision of issues discussed in the theme

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