Ch 5 Vocabulary

Question 1

business owned and controlled by two or more people who have entered into a written agreement

Answer 1

partnership

Question 2

short, specific written statement of the reason a business exists; what it wants to accomplish

Answer 2

mission statement

Question 3

one who has no explicit/implicit contract for long-term employment

Answer 3

contingent worker

Question 4

descriptions of the way work is to be done

Answer 4

procedures

Question 5

specific statement of results the business expects to achieve

Answer 5

goal

Question 6

written legal document that identifies ownership and operating procedures and condition for the business

Answer 6

articles of incorporation

Question 7

businesses involved in selling the goods and services of producers to consumers and other businesses

Answer 7

intermediaries

Question 8

a separate legal entity, formed by documents files with the state, which is owned by one or more shareholders and managed by a board of directors

Answer 8

corporation

Question 9

written contract granting permission to operate a business to sell products and services in a prescribed way

Answer 9

franchise

Question 10

businesses that complete activities that are consumed by customers rather than offering products for sale

Answer 10

service businesses

Question 11

business owned and controlled by just one person

Answer 11

proprietorship

Question 12

written agreement among all owners that specifies the rules and procedures that guide ownership and operations

Answer 12

partnership agreement

Question 13

guidelines used in making consistent decisions

Answer 13

policies

Question 14

diagram that shows the structure of an organization, classifications of jobs and the relationships among those classifications

Answer 14

organization chart