Chapter 5

Question 0

Six basic business activities

Answer 0

1) generating ideas 2) raising capital 3) employing and training personnel 4) buying goods and services 5) marketing goods and services 6) maintaining business records

Question 1

contingent worker

Answer 1

one who has no explicit or implicit contract for long term employment

Question 2

intermediaries

Answer 2

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

Question 3

service business

Answer 3

carries out activities that are consumed by its customers

Question 4

partnership

Answer 4

business owned and controlled by two or more people

Question 5

proprietorship

Answer 5

business owned and run by just one person, the easiest to start and end

Question 6

corporation

Answer 6

separate legal entity formed by documents filed with a state

Question 7

partnership agreement

Answer 7

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

Question 8

articles of incorporation

Answer 8

written legal document that defines ownership and operating procedures and conditions for the business

Question 9

franchise

Answer 9

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

Question 10

mission statement

Answer 10

short specific written statement of why the business exists and what it wants to achieve

Question 11

policies

Answer 11

guidelines used in making consistent decisions

Question 12

procedures

Answer 12

descriptions of the way work is to be done

Question 13

span of control

Answer 13

the number of employees who are assigned to a particular work task and manager

Question 14

unity of command

Answer 14

clear reporting relationship for all staff of a business