Chapter 5 Business Organization

Question 1

One who has no explicit or implicit contract for long-term employment

Answer 1

Contingent Worker

Question 2

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

Answer 2

Intermediaries

Question 3

Carry out activities that are consumed by their customers.

Answer 3

Service Businesses

Question 4

A business owned and run by just one person

Answer 4

Proprietorship

Question 5

A business owned by 2 or more people who have entered into an agreement.

Answer 5

Partnership

Question 6

A separate legal entity formed by documents filed with a state, owned by one or more shareholders.

Answer 6

Corporation

Question 7

A written agreement among all owners, detailing the rules and procedures that guide ownership and operation.

Answer 7

Partnership Agreement

Question 8

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

Answer 8

Articles of Incorporation

Question 9

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

Answer 9

Franchise

Question 10

A short, specific written statement of the reason a business exists and what it wants to achieve.

Answer 10

Mission Statement

Question 11

A precise statement of results the business expects to achieve.

Answer 11

Goal

Question 12

Guidelines used in making consistent decisions.

Answer 12

Policies

Question 13

Descriptions of the way work is to be done.

Answer 13

Procedures

Question 14

The obligation to complete specific work.

Answer 14

Responsibility

Question 15

The right to make decisions about how responsibilities should be accomplished.

Answer 15

Authority

Question 16

Taking responsibility for the results achieved.

Answer 16

Accountability

Question 17

A clear reporting relationship for all staff of a business, which avoids confusion in assignments.

Answer 17

Unity of Command

Question 18

The number of employees who are assigned to a particular task and manager.

Answer 18

Span of Control

Question 19

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

Answer 19

Organization Chart

Question 20

Work is arranged within main business functions such as production, operations, marketing, and human resources. All of the people with jobs related to one of the functions will work together.

Answer 20

Functional Organizational Structure

Question 21

Work is structured around specific projects, products, or customer groups.

Answer 21

Matrix Organizational Structure