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Bus 100 > Chapter 3 > Flashcards

Chapter 3 Flashcards

1
Q

one that is independent (not part of a larger business)
and that has relatively little influence in its market

A

Small business

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2
Q

government agency charged with assisting small
businesses

A

Small Business Administration (SBA)

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3
Q

businessperson who accepts both the risks and the
opportunities involved in creating and operating a
new business venture

A

Entrepreneur

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4
Q

the process of seeking business opportunities under
conditions of risk

A

Entrepreneurship

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5
Q

one in which many firms compete according to
relatively well-defined criteria

A

Established Market

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6
Q

a segment of a market that is not currently being
exploited

A

Niche

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7
Q

is any advantage that comes to a firm because it
exploits an opportunity before any other firm does

A

First-mover advantage

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8
Q

Document in which the entrepreneur describes
her or his business strategy for the new venture
and demonstrates how it will be implemented

A

Business plan

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9
Q

arrangement in which a buyer (franchisee) purchases
the right to sell the good or service of the seller
(franchiser)

A

Franchise

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10
Q

group of small investors who invest money in
companies with rapid growth potential

A

Venture Capital Company

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11
Q

government-regulated investment company that
borrows money from the SBA to invest in or lend to a
small business

A

Small Business Investment Company (SBIC)

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12
Q

The Internet provides fundamentally new ways of
doing business

A

Emergence of E-Commerce

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13
Q

More businesses are being started by people who
have opted to leave big corporations and put their
experience to work for themselves

A

Crossovers from Big Business

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14
Q

More small businesses are also being started by
minorities and women

A

Opportunities for Minorities and Women

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15
Q

Many entrepreneurs are also finding new
opportunities in foreign markets

A

Global Opportunities

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16
Q

Today, 44 percent of new start-ups can expect to
survive for at least four years

A

Better Survival Rates

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17
Q

business owned and usually operated by one
person who is responsible for all of its debts

A

Sole Proprietorship

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17
Q

business with two or more owners who share in
both the operation of the firm and the financial
responsibility for its debts

A

General Partnership

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18
Q

Master partner has majority ownership and runs the
business; minority partners have no management
voice

A

Master Limited Partnership

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18
Q

– Allows for limited partners who invest money but are
liable for debts only to the extent of their investments
– General (or active) partners run the business

A

Limited Partnership

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19
Q

business that is legally considered an entity separate
from its owners and is liable for its own debts; owners’
liability extends to the limits of their investments

A

Corporation

20
Q

a corporation whose stock is held by only a few people
and is not available for sale to the general public

A

Closely Held (or Private) Corporation

21
Q

a corporation whose stock is widely held and available for
sale to the general public

A

Publicly Held (or Public) Corporation

22
Q

a hybrid of a closely held corporation and a partnership,
organized and operated like a corporation but treated as a
partnership for tax purposes

A

S Corporation

23
Q

hybrid of a publicly held corporation and a partnership
in which owners are taxed as partners but enjoy the
benefits of limited liability

A

Limited Liability Corporation (LLC)

24
Q

form of ownership allowing professionals to take
advantage of corporate benefits while granting them
limited business liability and unlimited professional
liability

A

Professional Corporation

25
Q

form of corporation spanning national boundaries

A

Multinational (or Transnational) Corporation

26
Q

roles of shareholders, directors, and other managers
in corporate decision making and accountability

A

Corporate Governance

27
Q

owner of shares of stock in a corporation

A

Stockholder (or Shareholder)

28
Q

governing body of a corporation that reports to its
shareholders and delegates power to run its day-to-day
operations while remaining responsible for sustaining its
assets

A

Board of Directors

29
Q

top management team of a corporation

A

Officers

30
Q

the top manager of an organization

A

Chief Executive Officer (C EO)

31
Q

strategy in which two or more organizations
collaborate on a project for mutual gain

A

Strategic Alliance

32
Q

strategic alliance in which the collaboration involves
joint ownership of the new venture

A

Joint Venture

33
Q

arrangement in which a corporation holds its own
stock in trust for its employees, who gradually receive
ownership of the stock and control its voting rights

A

Employee Stock Ownership Plan (ESOP)

34
Q

large investor, such as a mutual fund or a pension
fund, that purchases large blocks of corporate stock

A

Institutional Ownership

35
Q

the union of two corporations to form a new
corporation

A

Merger

36
Q

the purchase of one company by another

A

Acquisition

37
Q

strategy where a firm sells one or more of its
business units

A

Divestiture

38
Q

strategy of setting up one or more corporate units
as new, independent corporations

A

Spin-Off

39
Q

Under a franchise arrangement, the buyer is called the ________.

A

franchisee

39
Q

In a(n) ________, an entrepreneur summarizes business strategy for a new venture and shows how it will be implemented.

A

business plan

40
Q

A(n) ________ generally includes a cash budget, an income statement, a balance sheet, and a breakeven chart.

A

financial plan

41
Q

A ________ is a business with two or more owners who share in the operation of the firm and are financially responsible for its debts.

A

general partnership

42
Q

The best advantage of a corporation over a general partnership is:

A

limited liability

43
Q

The total economic value of all products that a nation exports minus the total economic value of all products that it imports is called a country’s ________.

A

balance of trade

43
Q

Which of the following is a tax on imported goods or products?

A

tariff

44
Q

Which of the following best defines the term subsidy?

A

a government payment to help a domestic business compete with international firms

45
Q

Many countries have ________ that require that products sold in a particular country be partly made there.

A

local content laws

46
Q

The Oil Producing and Exporting Countries (OPEC) is an example of a ________.

A

cartel

47
Q
A

Bus 100 (4 decks)

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